Eli Lilly ( LLY) and Bristol-Myers Squibb ( BMY) reported their quarterly results Thursday, and both pharmaceutical companies beat expectations on an adjusted basis and lifted their projections for the full year.

Lilly reported a loss of $466 million, or 43 cents a share, including a $1.48 billion charge for pending investigations of its antipsychotic drug Zyprexa and costs related to asset impairments and restructuring. A year earlier, Lilly earned $926 million, or 85 cents a share.

Factoring out those charges, the company said it earned $1.04 a share, up from 91 cents in the prior year. Revenue increased 14% to $5.2 billion, surpassing the expectations of analysts surveyed by Thomson Reuters, who had predicted $1.02 a share, on revenue of $5.09 billion.

Cymbalta revenue increased 40% to $716 million, and sales of Alimta increased 46% to $314 million.

Lilly also said it expects its planned $6.5 billion buyout of ImClone ( IMCL) to close in either the fourth quarter of this year or the first quarter of 2009.

As for its forecast, Lilly now expects earnings, excluding items, of between $3.97 and $4.02 a share for the year, up from its previous view of $3.85 to $4. Analysts were predicting $3.95 a share.

Meanwhile, Bristol-Myers reported a profit of $2.58 billion, or $1.29 a share, in its third quarter. A year ago, it earned $848 million, or 43 cents a share. The recent quarter benefited from a $2 billion after-tax gain from the sale of its ConvaTec business.

Factoring out the gain, Bristol said it earned $588 million, or 46 cents a share. Revenue rose 14% to $5.25 billion. Analysts, on average, had expected 42 cents a share and revenue of $5.23 billion.

Bristol upped its earnings guidance for the year to a range of $1.61 to $1.66 a share, from $1.36 a share to $1.46 a share. That includes a roughly $900 million pretax gain from the sale of its stake in ImClone to Lilly. On an adjusted basis, the company expects a profit between $1.65 and $1.70, which is the upper end of its previous outlook.

Analysts are calling for $1.65 a share, on revenue of $20.85 billion.

Bristol's shares were up 4.6% at $18.34, and Lilly was gaining 3.9% to $33.36.

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