You are here: Home » Reuters » News
Business Standard

Trulicity leads mixed third quarter for Lilly; shares sink

Reuters 

By B and Tamara Mathias

(Reuters) - and Co's drug helped power higher-than-expected third-quarter profit on Tuesday, while sales of some other newer treatments fell short of Wall Street estimates.

shares were off 3 percent at $106.63 in late morning trading, reversing course from pre-market gains.

The quarterly beat is encouraging, but mostly driven by lower taxes and expenses, and sales were affected by lower-than-expected revenue from new drugs, said.

told analysts on a conference call that the company expects 2019 sales to take a hit from the loss of patent protection on drug Cialis, but that he expects new products to "more than compensate."

He also said would consider more acquisitions similar to its recent $1.6 billion purchase of drug developer

The Indianapolis-based drugmaker raised its 2018 adjusted earnings forecast to between $5.55 and $5.60 per share, from $5.40 to $5.50 per share.

Lilly, which took its unit public in September, is banking on 10 new drugs launched since 2014 to drive growth as older treatments face increasing competition.

Trulicity, which recently overtook Humalog as Lilly's top-selling medicine, had sales of $816.2 million in the quarter, above analysts' consensus estimate of $801 million, according to brokerage SunTrust.

Lilly on Monday announced that had significantly reduced the risk of heart attack, and heart-related death in a broad range of patients with type 2 in a large clinical trial.

Results from that trial should strengthen, if not cement, Lilly's position as a in care, analysts said.

While sales momentum continued in the quarter, sales of other newer medicines, including diabetes treatments Basaglar and Jardiance and the drug Cyramza, all fell short of Wall Street expectations.

"The quarter was mixed, but it doesn't change much," said, noting that Lilly had faced pricing pressure in the

Arfaei said the company has become more dependent on Trulicity for growth, but that he sees Lilly's drugs in the class "as the emerging gold-standard in diabetes."

Excluding one-time items, Lilly earned $1.39 per share, topping analysts' average estimate by 4 cents, according to IBES data from Refinitiv.

Revenue rose about 7 percent to $6.06 billion, edging past analysts' expectations of $6.05 billion.

Net income in the quarter more than doubled to $1.15 billion.

(Reporting by Jagadeesh Babu and in Bengaluru; Editing by and Bill Berkrot)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 23:21 IST
RECOMMENDED FOR YOU