Lilly forecast 2009 earnings per share of $4 to $4.25, including a 30-35 cent hit from the acquisition of ImClone. Many analysts underestimated costs from the deal for the biotechnology company, according to Lilly. The deal was completed last month.

Excluding costs from the ImClone deal, Lilly expects earnings of $4.35 to $4.55 next year.

The company, which is holding its analyst day in New York, backed its long-term forecast of double-digit compound annual earnings per share growth between 2007 and 2011.

(Reporting by Lewis Krauskopf and Ransdell Pierson; Editing by Derek Caney)