By Aakash B and Tamara Mathias
(Reuters) - Eli Lilly and Co recorded higher sales of its newer drugs Trulicity and Taltz in the third quarter, helping the diabetes specialist top Wall Street profit estimates and raise its yearly earnings target on Tuesday.
Lilly is relying on new drugs to drive growth after it took its animal health unit public in September and as its older treatments face rising competition from generic as well as branded medicines.
Third-quarter sales from both diabetes drug Trulicity and psoriasis medicine Taltz exceeded Wall Street forecasts but revenue from Lilly's other newer treatments - Basaglar, Jardiance and Cyramza - each fell short of expectations.
Trulicity, which recently overtook Humalog as Lilly's top selling drug, had revenue of $816.2 million, above analysts' consensus estimate of $801 million, according to brokerage SunTrust.
Results from that trial should strengthen, if not cement, the Indianapolis-based drugmaker's position as a leader in diabetes treatments, analysts said.
"It reinforces how important the class is to the treatment of diabetes," he added.
Lilly raised its 2018 adjusted earnings forecast to between $5.55 and $5.60 per share, from $5.40 to $5.50 per share.
Net income in the quarter ended September more than doubled to $1.15 billion. Results a year earlier included a write-down of more than $400 million.
Excluding one-time items, Lilly earned $1.39 per share, above analysts' average estimate of $1.35 per share, according to IBES data from Refinitiv.
Revenue rose about 7 percent to $6.06 billion, edging past analysts' expectations of $6.05 billion.
Lilly's shares were up 4.2 percent at $114.78 in premarket trading.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)