NEW YORK (AP) — Eli Lilly and Co. reported better-than-expected second-quarter profit on a boost from its recently acquired animal health unit and raised its outlook.
The company reported second-quarter earnings of $600.8 million, or 56 cents per share, down from profit of $733.5 million, or 68 cents per share, a year ago. Earnings, adjusted for non-recurring costs, were 90 cents per share.
The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 74 cents per share.
The drugmaker posted revenue of $4.98 billion in the period, an increase of 1 percent from $4.94 billion a year earlier. Six analysts surveyed by Zacks expected $4.84 billion in revenue.
On Jan. 1, the company finished its $5.4 billion acquisition of the animal health division belonging to Swiss drugmaker Novartis. The inclusion of that unit pushed an 8 percent increase in volume during the quarter, driving revenue higher. There were also slight volume increases in sales of the cancer drug Cyramza and the diabetes drug Trulicity.
The Indianapolis-based company saw lower demand for the antidepressant Cymbalta and the osteoporosis drug Evista on generic competition as patents on the treatments expired.
Eli Lilly now expects profit, excluding charges, between $3.20 and $3.30 per share, up from prior guidance of $3.10 to $3.20 per share. It expects revenue between $19.7 billion and $20 billion.
Shares rose $2.12, or 2.5 percent, to reach $88.50 in premarket trading.
Lilly shares have risen 25 percent since the beginning of the year, while the Standard & Poor's 500 index has risen nearly 3 percent. The stock has climbed 44 percent in the last 12 months.