LLY – Market expectations are for slight Uniform ROA compression, but management is excited about product launches and confident about their R&D pipeline

• Eli Lilly and Company (LLY:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 24.2x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, but management generated an excitement marker when discussing their product launches, and is confident about their R&D pipeline
• Specifically, management generated an excitement marker when saying their recent product launches provide a strong base going forward. Additionally, they are confident in their R&D pipeline, results from their Phase III study of tanzumab in osteoarthritis patients, and beneficial tax rates. Also, they are confident in their ability to manage operating expenses, lower costs for patients taking rebated products, and utilize health care system’s efficiencies