=Eli Lilly (LLY) reported earnings on Tue 25 July 2017 (b/o)

• Incyte (INCY) -- Lilly's partner on the arthritis drug

A delay in getting its rheumatoid arthritis drug to market by at least 18 months sent Eli Lilly (LLY) shares lower Tuesday as the drug giant reported second-quarter earnings.

The Food and Drug Administration is requiring Lilly and Incyte to run another trial to determine the benefits and risks across doses of the drug, now known as baricitinib, before resubmitting their application for approval.

Lilly estimates at least 18 months to resubmit the application, putting the approval of baricitinib beyond 2017. Baricitinib is approved in Europe to treat moderate-to-severe rheumatoid arthritis.

Also early Tuesday, Lilly reported $5.82 billion in second-quarter sales, just lagging the consensus for $5.89 billion. Adjusted profits of $1.11 per share topped by 7 cents. Revenue grew 8% with profits per share up 29%.

Diabetes drug Trulicity and plaque psoriasis drug Taltz led growth in the quarter, up 139% and 618%, respectively, vs. the year-earlier quarter. Sales of Basaglar, an insulin to treat adults and children with Type 1 diabetes, grew 432%.

Lilly also raised its 2017 sales guidance to $22 billion to $22.5 billion, up from earlier views for $21.8 billion to $22.3 billion. Adjusted income was raised to $4.10-$4.20 a share for the year, which would be up 16%-19% from 2016.