Lilly forecasts 2018 profit and revenue largely above estimates

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Bottles of Eli Lilly’s Cialis brand medication on a pharmacy shelf in Princeton, Illinois.

Eli Lilly on Wednesday forecast 2018 earnings and revenue largely above analysts’ estimates in part due to strong demand for recently launched diabetes drug Trulicity and psoriasis drug Taltz.

The company said it expected 2018 revenue of $23.0 billion to $23.5 billion and adjusted earnings of $4.60 to $4.70 per share.

Analysts on average were expecting revenue of $23.07 billion and earnings of $4.64 per share, according to Thomson Reuters I/B/E/S.

The company said it expected progress in its drug portfolio, including regulatory action for its rheumatoid arthritis drug candidate baricitinib, and the launch of a new indication for Taltz in psoriatic arthritis.

Lilly has been facing the threat of competition for some of its newer drugs including Taltz.

The U.S. Food and Drug Administration on Monday approved Sanofi SA’s Admelog as the first follow-on biologic version of Lilly’s top-selling insulin product, Humalog.

Lilly reaffirmed its expectation of at least 5 percent average annual revenue growth from 2015 to 2020, on a constant currency basis.

The company also lowered its 2017 earnings forecast to $1.56-$1.66, due to asset impairment, restructuring and other charges. It reiterated its 2017 adjusted earnings forecast of $4.15-$4.25 per share.