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Updated from 8:53 a.m. EDT

Eli Lilly

(LLY) - Get Eli Lilly and Company (LLY) Report

reaffirmed its full-year earnings guidance after reporting third-quarter earnings that narrowly beat Wall Street's expectations.

The Indianapolis-based drugmaker reported a third-quarter profit of $873.6 million, or 80 cents a share, on revenue of $3.86 billion. Analysts polled by Thomson First Call were predicting a profit of 79 cents a share on $3.88 billion in sales.

For the same period last year, Lilly earned $794.4 million, or 73 cents a share, on revenue of $3.6 billion.

Lilly said its full-year earnings projection remains in the range of $3.10 to $3.20, excluding one-time events. The consensus is $3.14.

The prediction excludes the impact of Lilly's proposed

$2.1 billion acquisition of

Icos

(ICOS)

, the developer of the impotence drug Cialis. Lilly and Icos have a joint venture to market Cialis.

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Also excluded are charges related to the possible closing or sale of three European plants.

Lilly plans to ask the Food and Drug Administration to reconsider its recent ruling on Arxxant, the experimental drug to treat eye damage linked to diabetes. In late September, Lilly said the agency wanted the company to conduct another clinical trial to assess the efficacy of the drug. The FDA said the trial would take three years, but Lilly believes it will take five years.

John Lechleiter, Lilly's president and chief operating officer, told analysts that he believes there is a "compelling case" for the FDA to approve Arxxant without an extra, expensive clinical trial. Appeals to the FDA are rare. Although Lilly has begun talking to the FDA, Lechleiter said he couldn't provide a timetable for the company's efforts. Arxxant received conditional approval from the FDA in August.

During a conference call, Lechleiter said he hopes a reorganization of Lilly's U.S. sales force will help improve sales of the schizophrenia drug Zyprexa, which accounted for 28% of corporate revenue.

Worldwide sales rose 5% to $1.08 billion in the third quarter, with revenue in the U.S. market growing 3% thanks to price increases. Total U.S. prescriptions are stable. Sales in non-U.S. markets rose 6% to $566 million due to higher demand and the favorable impact of exchange rates.

Among other major products, Lilly's third-quarter was led by the antidepressant Cymbalta, whose worldwide sales jumped 91% to $348.6 million, including an 80% gain in the U.S. market.

Two cancer drugs posted sales gains. Sales of Gemzar, for several types of cancer, advanced 6% to $354.6 million. The lung-cancer drug Alimta was up 29% to $157.2 million. Revenue for the osteoporosis drug Evista slipped 1% to $257.9 million, but Forteo, a treatment for the same condition, saw its sales surge 45% to $149.1 million.

The attention deficit hyperactivity disorder drug Strattera continued to struggle, losing 10% to $126.4 million because of declining U.S. demand.

Diabetes-care products, which include Lilly's insulin offerings and its marketing deals for blood-sugar control drugs with other companies, rose 9% to $712.4 million. The

biggest boost came from Byetta, a drug marketed in collaboration with

Amylin Pharmaceuticals

(AMLN)

.