UPDATE: Eli Lilly Reports 11% Drop In Q2 Earnings

Eli Lilly & Co LLY reported an 11% decline in its second-quarter earnings. LLY's quarterly net income dropped to $1.20 billion, or $1.07 per share, from $1.35 billion, or $1.22 per share, in the year-ago period. Its adjusted earnings dropped to $1.18 per share from $1.24 per share. However, analysts were expecting earnings of $1.19 per share. Its revenue rose 9% to $6.25 billion. LLY projects 2011 earnings between $3.85 and $3.95 per share and adjusted earnings between $4.25 and $4.35 per share. Analysts expect 2011 earnings of $4.29 per share. LLY shares gained 1.34% to $38.68 in pre-market trading.