Eli Lilly & Co. lowered its EPS outlook range for 2016 and offered expectations for 2017.

The company expects EPS in a range of $2.57 to $2.67, down from the previously expected range of $2.66 to $2.76. The company attributed the revision mainly to restructuring charges linked to the negative outcome of the recent solanezumab study and the charge associated with the agreement with AstraZeneca PLC to co-develop MEDI1814, a potential disease-modifying treatment for Alzheimer's disease.

On a non-GAAP basis, EPS for 2016 is still expected to be in the range of $3.50 to $3.60. The S&P Capital IQ normalized EPS estimate for 2016 is $3.53.

Research and development expenses are now expected to be in the range of $5.00 billion to $5.20 billion, compared to the previous guidance range of $4.90 billion to $5.10 billion. Revenue for 2016 is still expected to be between $20.80 billion and $21.20 billion.

For 2017, EPS is expected to be in the range of $3.51 to $3.61 on a reported basis and $4.05 to $4.15 on a non-GAAP basis. The S&P Capital IQ normalized EPS estimate for 2017 is $4.01.

Revenue for 2017 is expected to be between $21.80 billion and $22.30 billion. Excluding the impact of foreign exchange rates, the company expects revenue growth from animal health products and a number of established pharmaceutical products, including Trajenta, Forteo and Humalog, as well as higher revenues from new products, including Trulicity, Taltz, Basaglar, Cyramza, Jardiance and Lartruvo.

R&D expenses are expected to be in the range of $4.90 billion to $5.10 billion for 2017.