Indianapolis-based Eli Lilly and Co. (NYSE: LLY) beat estimates with second quarter net income of $600.8 million, compared to $733.5 million during the same quarter the previous year. The company has also announced plans to expand the Lilly Biotechnology Center in San Diego, essentially doubling its research presence in the city.
Lilly says Novartis Animal Health and increased demand for products including Cyramza and Trulicity helped increase revenue by one percent. The company says, however, those gains were offset in large part by patent expirations of Cymbalta and Evista and the negative effects of foreign exchange rates.
Chief Executive Officer John Lechleiter says Lilly "remains on track" to return to growth this year, fueled in part by recently-launched products. He says continued pipeline progress will "provide the basis for solid growth in the years ahead."
Lilly yesterday unveiled positive late-stage study results on a potential Alzheimer's disease blockbuster therapy. The drug, solanezumab could slow the disease.
The company expects its expansion plans in San Diego to create up to 130 jobs. Lilly says it will recruit drug discovery experts in the areas of biotechnology, chemistry and immunology. The center was officially established in 2009.