Eli Lilly says quarterly earnings fell due to higher expenses, but its sales topped expectations and the company has slightly raised the lower end of its full-year forecast.

The company, whose third- quarter profit matched Wall Street forecasts, warns that its top-selling Zyprexa, a schizophrenia drug, will face a “rapid and severe decline” in revenue after the $4.5 billion a year product begins facing competition from cheaper generics in the United States.

Earnings fell to $1.24 billion, or $1.11 a share, from $1.3 billion, or $1.18 a share, a year earlier. Excluding special items, Lilly earned $1.13 a share.

Global company revenue rose 9 per cent to $6.15 billion, topping Wall Street expectations of $6.06 billion. Revenue would have risen by 5 per cent if not for the weak dollar. – (Reuters)