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Update 4: Eli Lilly Swings to Fourth-Quarter Profit

...In the U.S., sales for the popular anti-psychotic decreased 15 percent because of waning demand for the medication.

Worldwide, "There's still lingering issues with "But But growth was slower in Western Europe and the U.K.

Other products fared better.

Sales of osteoporosis medication Forteo increased 59 percent to $118 million, erectile dysfunction drug Cialis, which Lilly markets with ICOS Corp., increased 38 percent and four diabetes drugs climbed 11 percent to a combined $750 million.

"Lilly is determined to be a leader in diabetes care," said Jim Ward, Lilly's executive director of investor relations.

The company is bulking up its marketing and manufacturing for the insulin medication Humalog.

Excluding certain charges in 2004 and 2005, as well as stock-option expensing in 2004, Lilly's earnings for the latest quarter would have risen to 80 cents per share, compared with 69 cents per share in the prior year.

Analysts polled by Thomson Financial expected earnings ...

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