Lilly posted lower-than-expected quarterly earnings, as disappointing sales of its Byetta diabetes drug overshadowed growing demand for its older diabetes treatments and Cialis impotence drug. Net income was $1.06 billion, or 97 cents a share, compared with $508.7 million, or 47 cents, a year earlier. Excluding special items, Lilly earned 92 cents per share, below analysts estimates of 96 cents, according to Reuters. Revenue grew 14 percent to $4.81 billion, in line with forecasts, but sales would have risen only 9 percent if not for favorable foreign exchange factors. Global sales of the Byetta injectable diabetes drug rose 15 percent to $169 million. The drug is sold in partnership with Amylin, which says wholesalers cut back on purchases. Here is the Lilly statement and the Amylin statement.

Novartis reported a 7 percent rise in first-quarter profits thanks to the declining dollar and solid performance in its vaccines and diagnostics division. Earnings rose to $2.32 billion, or $1.02 a share, compared with $2.17 billion, or 92 cents, beating analyst estimates and prompting the stock to reach its highest levels in five years. The drugmaker’s shares had fallen 22 percent this year before today, making it the third-worst-performing stock on the Bloomberg Europe Pharmaceutical Index. Here is the Novartis statement.

Merck beat analyst earnings expectations, but missed on sales. First-quarter earnings rose to 89 cents a share, without charges from restructuring and an AstraZeneca partnership, up from 84 cents a year earlier. Wall Street forecast 86 cents, according to Thomson Financial. But sales edged up only 1 percent, to $5.8 billion, falling short of analyst expectations of a 6 percent gain to $6.1 billion, CNNMoney.com writes. Nonetheless, Merck reaffirmed earnings guidance for the year. This is the Merck statement.