Eli Lilly recorded higher sales of its newer drugs Trulicity and Taltz in the third quarter, helping the diabetes specialist top Wall Street profit estimates and raise its yearly earnings target on Tuesday.
Shares of Lilly jumped 4 percent in premarket trading following the news.
Lilly is relying on new drugs to drive growth after it took its animal health unit public in September and as its older treatments face rising competition from generic as well as branded medicines.
Third-quarter sales from both diabetes drug Trulicity and psoriasis medicine Taltz exceeded Wall Street forecasts but revenue from Lilly's other newer treatments Basaglar, Jardiance and Cyramza each fell short of expectations.
"Performance of key products that are part of the new product story were mixed," Credit Suisse analyst Vamil Divan said.
Trulicity, which recently overtook Humalog as Lilly's top selling drug, had revenue of $816.2 million, above analysts' consensus estimate of $801 million, according to brokerage SunTrust.