UPDATE 2-Lilly beats profit estimates, delays arthritis drug application

* Strong volume growth, higher realized prices boost revenue

* Q2 revenue rises $5.82 bln vs. est. $5.60 bln

* Raises FY17 revenue forecast to $22 bln-$22.5 bln

* Shares down 2 pct premarket (Adds details, analyst comment, shares)

July 25 (Reuters) - Eli Lilly & Co's quarterly profit topped analysts' estimates and the drugmaker said on Tuesday it would delay resubmitting a marketing application for its rheumatoid arthritis drug beyond 2017.

The U.S. Food and Drug Administration in April declined to approve the drug, baricitinib, made by Lilly and partner Incyte Corp, indicating additional clinical data was needed to determine the most appropriate doses.

The companies will be discussing the path forward with the agency and evaluating options for resubmission, including the potential for an additional clinical study, as requested by the FDA.

With consensus already reflecting a multi-year delay for baricitinib, J.P. Morgan analysts don't see Tuesday's news as a major setback to the broader Lilly thesis.

Strong demand for Lilly's new products, including diabetes treatment Trulicity and psoriasis drug Taltz, helped it beat analysts' expectations and the Indianapolis-based drugmaker raised its full-year revenue forecast.

Trulicity, an injectable diabetes treatment that competes with Novo Nordisk's blockbuster Victoza, reported sales of $480 million, higher than the consensus estimate of $411 million, according to Barclays.

Taltz brought in sales of $138.7 million, ahead of the consensus estimate of $122 million.

Net income rose to $1.01 billion, or 95 cents per share, in the second quarter ended June 30, from $747.7 million, or 71 cents per share, a year earlier.

Excluding items, Lilly earned $1.11 per share, above the average analyst expectation of $1.05 per share, according to Thomson Reuters I/B/E/S.

Lilly's total revenue rose to $5.82 billion from $5.40 billion. Analysts on average had expected $5.60 billion.

The company said increase in volumes as well as higher realized prices helped boost revenue.

Lilly said it would build on its oncology portfolio, pursuing new standard-of-care changing therapies that target tumor dependencies in certain populations and develop next-generation immunotherapies.

The drugmaker raised its full-year 2017 revenue forecast to $22 billion to $22.5 billion from $21.8 billion to $22.3 billion.

It now expects adjusted earnings of $4.10 per share to $4.20 per share, up from $4.05 per share to $4.15 per share.

Lilly's shares were down 2 percent at $83 in premarket trading, while Incyte's stock was down 3 percent at $134.

(Reporting by Ankur Banerjee in Bengaluru; Editing by Martina D'Couto)