Eli Lilly and Company (NYSE:LLY) Q4 2017 Earnings Conference Call - Preliminary Transcript
Jan 31, 2018 • 09:00 am ET
cell lung cancer.
Turning to Slide 20, you can see the considerable progress we made on the key events we had projected for 2017, while Slide 21 highlights our expected key events for 2018, which we covered on our 2018 guidance call in December. In addition to noting the approval of Taltz for psoriatic arthritis, you will see that we've added an event for the expected date of disclosure of the Keynote 189 study based on Merck's recent press release announcing the positive results of the Phase III study for Alimta in combination with Keytruda.
2018 will be an important year with potential Phase III initiations and data readouts for several promising new molecules and line extensions, as well as we expect regulatory actions for galcanezumab, baricitinib and abemaciclib. Before we go to the Q&A session, let me briefly sum up the progress we made in 2017 and our priorities moving forward.
In 2017, new products delivered nearly 20% of our total revenue, up from just 9% in 2016. Our growing portfolio of new medicines drove strong 8% top line growth for the full year. We achieved this result while maintaining relatively flat operating expenses, driving operating margin improvement of more than 450 basis points excluding FX.
We are in the early stages of a growth period driven by revenue from our recently launched products. The potential of our pipeline remains strong with new medicines in development for immunology, oncology, diabetes, and neurodegeneration complemented by a deep late-stage pain portfolio as well as additional indications for many recently launched products. Moving into 2018, we remain focused on launching with excellence and replenishing our pipeline while continuing to deliver bottom line growth and operating margin improvement. This concludes our prepared remarks.
Now I'll turn the call over to Phil Johnson to moderate the Q&A session.
Great, thank you, Dave. We would like to take questions from as many callers as possible, so we do ask that you limit your questions to two, or to a single question with two parts. Operator, if you can please provide the instructions for the Q&A session, and we're ready to get started.