Eli Lilly Beats Profit And Sales Expectations; NDA For RA Treatment To Be Delayed

Eli Lilly & Co. reported a second-quarter net profit that rose to $1.01 billion, or 95 cents a share, from $747.7 million, or 71 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS was $1.11, beating the FactSet consensus of $1.05. Revenue rose 8% to $5.82 billion, above the FactSet consensus of $5.59 billion, as strong growth in new pharmaceutical products helped offset weakness in animal health. For 2017, the drug giant expects adjusted EPS of $4.10 to $4.20, surrounding the FactSet consensus of $4.12, while the revenue outlook was raised to $22.0 billion to $22.5 billion from $21.8 billion to $22.3 billion. Separately, Lilly and Incyte Corp. said a resubmission for the new drug application for a treatment of rheumatoid arthritis will be delayed beyond 2017, as the FDA has indicated a new clinical study is necessary. Lilly's stock was indicated slightly lower in premarket trade, while Incyte's stock tumbled 2.6%. Year to date, Lilly shares have rallied 15% while the S&P 500 has gained 10.3%.