Eli Lilly, one of the globe’s top insulin-makers, said the idea was reviewing options including a sale or an initial public offering for its Elanco animal health business, which is usually facing increased competition.
Lilly also said the idea also exploring options, including a sale, of Posilac, a supplement to boost dairy cow productivity. The supplement is usually part of the animal health business, which accounted for 13 percent of total sales inside the latest quarter.
The drugmaker, which has warned the idea expects competition to eat into sales at its animal health division through the end of 2017, said the idea took a $406.5 million charge in its latest quarter, partly due to an expected drop in sales of Posilac.
Still, Lilly’s third-quarter adjusted profit along with total sales beat analysts estimates along with the company raised its full-year adjusted profit along with revenue forecasts due to healthy demand for its brand new treatments.
Shares of the Indianapolis-based drugmaker were about 2 percent in premarket trading.
Lilly, which has faced serious setbacks to its drug development pipeline over the past year, has embarked on a cost-cutting drive, laid off thousands of employees along with hired a brand new chief financial officer in recent months.
Lilly also said the idea would likely resubmit a marketing application with brand new safety along with efficacy data for its rheumatoid arthritis drug, baricitinib, before the end of January.
In July, the drugmaker had warned of a multi-year delay for baricitinib after U.S. health regulators rejected the drug along with asked for an extra clinical study.
Lilly raised its full-year adjusted profit forecast to $4.15-$4.25 per share through $4.10-$4.20, along with its revenue forecast to $22.4 billion-$22.7 billion through $22.0 billion-$22.5 billion.
The company said the idea would likely provide an update on its plans for Elanco no later than the middle of 2018.
Net income fell 28.5 percent to $555.6 million, or 53 cents per share, inside the quarter ended Sep. 30. of which included the $406.5 million charge related to Posilac.
Excluding items, Lilly earned $1.05 per share.
Revenue rose nearly 9 percent to $5.66 billion, driven by a 7 percent jump due to volume along which has a 2 percent increase due to higher realized prices, Lilly said.
The animal health business brought in $740.6 million in sales.
Analysts on average were expecting a profit of $1.03 per share, on revenue of $5.52 billion, according to Thomson Reuters I/B/E/S.