Eli Lilly and Co. (LLY) is offering a healthy outlook for the rest of 2018 as the giant drugmaker raised its profit guidance for the year after its third-quarter results beat expectations.
Lilly on Tuesday posted earnings per share for the quarter of $1.39, which was above the $1.35 EPS consensus of analysts, and revenue of $6.06 billion, which was up 7% year over year and edged out the consensus estimate of $6.05 billion.
"Revenue growth driven by greater use of our newest medicines, coupled with prudent expense management, led to strong EPS growth," David A. Ricks, Lilly's chairman and CEO, said in a statement.
The positive earnings promoted Lilly to raise full-year earnings guidance to a range of $5.55 to $5.60 per share versus the prior range of $5.40 to $5.50.
The strong earnings come directly after the announcement on Monday of some positive results from Lilly's diabetes drug Trulicity.
Results from a "Researching Cardiovascular Events with a Weekly Incretin in Diabetes" (REWIND) study released on Monday showed superior efficacy for Trulicity, a key drug in Lilly's pipeline. The drug helped produce a significant reduction in heart attacks and strokes for patients with type 2 diabetes.
Trulicity has been a key growth driver for the company, with revenue from the drug increasing to $816.2 million, up 55% year over year.
Lilly's revenue in the U.S. increased 11% year over year, to $3.4 billion, largely as a result of diabetes drugs Trulicity and Basgalar, as well as its offerings to treat cancer and psoriasis that are branded as Verzenio and Taltz, respectively.
Verzenio is a key factor in the company's guidance as the cancer drug recently cleared regulatory hurdles to treat breast cancer in Europe and Japan. Meanwhile, migraine treatment Emgality received U.S. Food and Drug Administration (FDA) approval and received positive attention from European physician organizations.
New medicines accounted for 35% of revenue overall in the quarter for the Indianapolis-based drugmaker. The growth helped in offsetting declines in revenue from drugs that have lost exclusive licensing; they include flagship erectile dysfunction drug Cialis, which saw sales fall somewhat flaccid as generic copycats such as Teva Pharmaceutical Industries' (TEVA) tadalafil undercut sales.
To continue its growth, Lilly has begun its run to garner more exclusive rights with the announcement on Monday of a partnership with NextCure Inc. to develop novel immuno-oncology therapies.
Details surrounding the results and future developments will be available during a company earnings call to be broadcast at 9 a.m. ET.