Dura, Eli Lilly Developing Insulin System

Dura Pharmaceuticals Inc. said it’s working with Eli Lilly & Co. to develop a pulmonary delivery system for insulin and it would have lower-than-expected earnings for the year. Dura, which had revenue of $181.3 million last year, and Lilly, the world’s 10th-largest drug maker, have been working together unannounced for some time to develop a better delivery system for insulin, usually delivered by syringe, Lilly said. The new system would use Dura’s Spiros technology, which allows the drug to be inhaled. San Diego-based Dura also said it was expecting earnings of 5 cents to 7 cents a share for the third quarter and 16 cents to 19 cents for the fourth quarter. Dura said earnings would be lower because of changes in its sales force as it prepares for next year’s launch of Alburterol Spiros, which would allow patients to inhale a dosage of Alburterol, the most prescribed drug for asthma. Dura shares fell $2.50 to close at $11.94 on Nasdaq. Lilly shares rose $1 to $80.88 on the New York Stock Exchange.