Drugmaker Eli Lilly and Co.'s second-quarter earnings fell 11 percent as it hiked marketing and research expenses to gear for a wave of patent expirations that will slash sales for its top-selling drugs.
The Indianapolis company said Thursday marketing, selling and administrative expenses climbed 16 percent to $2.04 billion as the company supported launches of the type 2 diabetes treatments Tradjenta and Bydureon. Research expenses also rose due to a collaboration agreement Lilly reached in January with German drugmaker Boehringer Ingelheim.
A 9-percent revenue increase buoyed by strong sales from several drugs blunted some of those expenses, and Lilly raised its 2011 earnings forecast.
The drugmaker earned $1.2 billion, or $1.07 per share, in the three months that ended June 30. That's down from the $1.35 billion, or $1.22 per share, Lilly earned in the same quarter last year. Revenue rose 9 percent to $6.25 billion.
Excluding restructuring charges, the company's profit was $1.18 per share.
The animal health division, which includes Elanco in east Augusta, had $389.5 million in revenue for the quarter, up from $324.2 million in the second quarter of 2010.
U.S. sales grew 18 percent, to $218.3 million, due to increased demand for food animal products.