REUTERS: Eli Lilly and Co beat analysts' estimates for quarterly profit and raised its full-year earnings forecast on Tuesday, as higher sales of diabetes drugs Trulicity and Basaglar offset competition for its erectile dysfunction treatment, Cialis.
The drugmaker has been working to retain its dominant position in the diabetes market, as its top-sellers, including insulin injection Humalog, lose market share to rivals, amid political scrutiny over soaring healthcare costs.
Lilly is also banking on its newer treatments such as Emgality, which won U.S. approval to treat migraine last year and has been touted as a growth driver for Lilly.
Emgality brought in sales of US$34.3 million in the three months ended June 30, missing analysts' estimate of US$42.3 million for a second straight quarter.
Sales of Trulicity rose about 32per cent to US$1.03 billion in the second quarter, just above the average analyst estimate of US$1.02 billion, according to IBES data from Refinitiv. The drug accounted for nearly a fifth of Lilly's total sales.
In contrast, revenue from Humalog, which included the cut-price version of the drug, fell 12per cent to US$677.6 million.
Lilly in March agreed to offer a half-priced version of Humalog after coming under intense pressure from U.S. politicians to lower drug costs.
The company raised its 2019 adjusted earnings forecast to a range of US$5.67 to US$5.77 per share from its prior range of US$5.60 to US$5.70 per share. Analysts were expecting a profit of US$5.66 per share.
However, revenue from the United States was nearly flat at US$3.25 billion, mainly due to lower prices even as volumes rose.
Total revenue rose to US$5.64 billion from US$5.59 billion, above estimates of US$5.59 billion.
Lilly had warned in April that its revenue growth will be hit by its programs that allow new patients to try new drugs at little or no cost.
The drugmaker posted net income of US$1.33 billion, or US$1.44 per share, in the latest quarter.
Excluding items, Lilly earned US$1.50 per share. Analysts were expecting a profit of US$1.45 per share.
Separately, the company released late-stage study results, which showed that Lilly's combination therapy that includes its cancer treatment, Verzenio, helped women with certain types of advanced breast cancer live longer.
Verzenio competes with Novartis AG's Kisqali and Pfizer Inc's Ibrance. The therapy brought in slightly better-than-expected sales of US$133.9 million during the quarter.
Shares of the company rose 1per cent to US$109.75 in trading before the bell.
(Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Anil D'Silva)