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The Markets
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Pharma & Biotech

Eli Lilly on back-foot despite better than expected results

A delay for a new drug application somewhat overshadowed better than expected results.

Eli Lilly and Co (NYSE:LLY) shares were on the back-foot in pre-market deals as news of a delayed decision for a new drug overshadowed second quarter financials that were ahead of expectations.

Second quarter net profit increased to US$1.01bn from US$747mln in the same period of last year.

It comes as quarterly revenue increased by 8% to US$5.82bn, ahead of market expectations set at US$5.59bn.

The drug maker separately revealed that more clinical work will be needed before a resubmission to the Food & Drug Administration for the new drug application of a rheumatoid arthritis, which is now going to be delayed beyond the end of this year.

Eli Lilly shares were down around 3% at US$82 shortly after the open while Incyte Corporation (NASDAQ:INCY), the other partner in the potential RA treatment, fell more than 3.5% to trade just at US$133.25.

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