Eli Lilly and Company
Lilly Corporate Center
Indianapolis, Indiana 46285
U.S.A.
Date: October 24, 2012
For Release: Immediately
Refer to: (317) 276-5795 - Mark E.
Taylor (Media)
(317) 655-6874 - Philip Johnson
(Investors)
Lilly Reports Third-Quarter 2012 Results
- Worldwide revenue declined 11 percent to $5.443 billion, driven by Zyprexa
patent expirations.
- Cymbalta revenue increased 16 percent due to continued growth
in both the
U.S. and international markets.
- Third-quarter earnings per share were $1.18 (reported), or $0.79 (non-GAAP,
when excluding income from Amylin payment and asset impairment
and
restructuring charge).
- Data read-outs provided a better understanding of several
potential new
medicines in Lilly's clinical pipeline.
- 2012 non-GAAP EPS guidance reconfirmed to be in the range of
$3.30 - $3.40,
while reported EPS guidance range revised to $3.68 - $3.78.
Eli Lilly and Company (NYSE: LLY) today announced financial
results for the third quarter of 2012.
$ in millions, except per Third Quarter % share data
2012 2011 Change
Total Revenue - Reported $5,443.3 $6,147.9 (11)%
Net Income - Reported 1,326.6 1,236.3 7%
EPS - Reported 1.18 1.11 6%
Net Income - non-GAAP 888.3 1,253.8 (29)%
EPS - non-GAAP 0.79 1.13 (30)%
Financial results for 2012 and 2011 are presented on both a reported and a
non-GAAP basis. Reported results were prepared in accordance with generally
accepted accounting principles (GAAP) and include all revenue and expenses
recognized during the period. Non-GAAP results exclude the items described in
the reconciliation tables later in the release. The non-GAAP results are
presented in order to provide additional insights into the underlying trends
in the company's business. The company's 2012 financial guidance is also being
provided on both a reported and a non-GAAP basis.
"The third quarter was an eventful one for Lilly, as we gained a better
understanding of several potential new medicines in our clinical pipeline,
while maintaining focus on delivering solid financial results despite the loss
of Zyprexa patent exclusivity," said John C. Lechleiter, Ph.D., Lilly's
chairman, president and chief executive officer. "We are executing well on our
business objectives and advancing our pipeline that now has more than 60
molecules in clinical development. We remain firmly committed to our
innovation-based strategy in order to meet the needs of the patients who rely
on us for new medicines."
Key Events Over the Last Three Months
- The company announced that the primary endpoints, both
cognitive
and functional, were not met in either of the two phase III,
double-blind,
placebo-controlled solanezumab EXPEDITION trials in patients
with
mild-to-moderate Alzheimer's disease. However, a pre-specified
secondary
analysis of pooled data across both trials showed a 34 percent
reduction
of cognitive decline in patients with mild Alzheimer's disease.
The next
steps for solanezumab will be determined after discussions with
regulators.
- Following the completion of its acquisition by Bristol-Myers
Squibb, Amylin paid to Lilly $1.259 billion in satisfaction of its
revenue-sharing obligation with respect to exenatide. In
addition, Amylin
also repaid to Lilly a $165 million loan plus accrued interest.
- The U.S. Court of Appeals for the Federal Circuit affirmed a prior
ruling by the U.S. District Court for the District of Delaware that the
company's compound patent for Alimta® is valid. The compound patent
provides protection for Alimta in the U.S. through January of 2017.
- The company announced positive top-line results of three completed
phase III AWARD trials for dulaglutide, an investigational, long-acting
glucagon-like peptide 1 (GLP-1) analog being studied as a once-weekly
treatment for type 2 diabetes. Primary efficacy endpoints, as
measured by
reduction in hemoglobin A1c (HbA1c) at the 1.5 mg dose, were met
in three
studies (AWARD-1, AWARD-3 and AWARD-5). Having met the primary
endpoints,
superiority for HbA1c lowering was examined, and both doses of
dulaglutide
(0.75mg and 1.5mg) demonstrated statistically superior reduction
in HbA1c
from baseline compared to: exenatide twice-daily injection at 26 weeks
(AWARD-1); metformin at 26 weeks (AWARD-3); and sitagliptin at 52 weeks
(AWARD-5).
- The company announced that the REGARD trial, a phase III study of
ramucirumab (IMC-1121B) in patients with metastatic gastric cancer, met
its primary endpoint of improved overall survival and its secondary
endpoint of increased progression-free survival.
- The company made the decision to stop ongoing phase III clinical
studies investigating pomaglumetad methionil, also known as
mGlu2/3, for
the treatment of patients suffering from schizophrenia. The
decision was
made after an independent futility analysis concluded HBBN, the
second of
Lilly's two pivotal studies, was unlikely to be positive in its
primary
efficacy endpoint if enrolled to completion. The decision was
not based on
any safety signals.
- The company and its partner, Daiichi Sankyo Company, Limited,
announced data from the TRILOGY ACS study, a phase III trial comparing
prasugrel plus aspirin to clopidogrel plus aspirin in patients with
unstable angina (UA) or non-ST elevation myocardial infarction
(NSTEMI),
who were managed medically without an artery-opening procedure.
The study
did not demonstrate prasugrel was superior to clopidogrel in
these
patients.
- The company announced that the phase III POINTBREAK trial did
not
meet its primary endpoint of improved overall survival for
patients with
nonsquamous non-small cell lung cancer who were randomized to
receive a
combination of Alimta with bevacizumab and carboplatin induction
followed
by Alimta plus bevacizumab maintenance compared to the combination of
paclitaxel with bevacizumab and carboplatin followed by bevacizumab
maintenance.
- The Committee for Medicinal Products for Human Use (CHMP) of the
European Medicines Agency (EMA) issued a positive opinion recommending
approval of Cialis® tablets 5 mg for once a day use for the
treatment of
the signs and symptoms of benign prostatic hyperplasia
(BPH).
- The U.S. Food and Drug Administration (FDA) approved a
supplemental new drug application for Tradjenta® tablets for use
as add-on
therapy to insulin. Europe's
CHMP issued a positive opinion recommending
approval of Trajenta for use as add-on therapy to insulin.
- The FDA approved a change in the label for Alimta to state
that
patients may receive Alimta as a maintenance therapy following
first-line
Alimta-cisplatin induction therapy for locally advanced or metastatic
nonsquamous non-small cell lung cancer.
- Europe's CHMP issued a positive opinion recommending approval of
AmyvidTM (Florbetapir F 18) solution for injection as a diagnostic
radiopharmaceutical indicated for Positron Emission Tomography (PET)
imaging of beta-amyloid neuritic plaque density in the brains of adult
patients with cognitive impairment who are being evaluated for
Alzheimer's
Disease and other causes of cognitive impairment.
Third-Quarter Reported Results
In the third quarter of 2012, worldwide total revenue was $5.443 billion, a
decrease of 11 percent compared with the third quarter of 2011. This 11
percent revenue decline was comprised of a decrease of 9 percent due to lower
volume and 3 percent due to the unfavorable effect of foreign exchange rates,
partially offset by an increase of 1 percent due to price. The decrease in
volume was driven by the loss of patent exclusivity for Zyprexa® in most major
markets, partially offset by volume gains for certain other products. Total
revenue in the U.S. decreased 9 percent to $2.986 billion due primarily to the
loss of patent exclusivity for Zyprexa, partially offset by increased prices.
Total revenue outside the U.S. decreased by 15 percent to $2.457 billion,
driven by the loss of patent exclusivity for Zyprexa in markets outside of
Japan, the unfavorable effect of foreign exchange rates, and decreased prices,
partially offset by increased volume in other products.
Gross margin decreased 12 percent to $4.240 billion in the third quarter of
2012. Gross margin as a percent of total revenue was 77.9 percent, reflecting
a decrease of 0.3 percentage points compared with the third quarter of 2011.
The decrease in gross margin percent was primarily due to lower sales of
Zyprexa, largely offset by the impact of foreign exchange rates on
international inventories sold which decreased cost of sales in the third
quarter of 2012 and increased cost of sales in the third quarter of 2011.
Total operating expense, defined as the sum of research and development,
marketing, selling and administrative expenses, decreased 3 percent compared
with the third quarter of 2011. Marketing, selling and administrative expenses
decreased 8 percent to $1.757 billion, driven primarily by lower marketing
expense. Research and development expenses increased 5 percent to $1.343
billion, or 24.7 percent of total revenue, driven by expenses related to
late-stage clinical trials.
In the third quarter of 2012, the company recognized a charge of
$53.3 million, primarily related to
asset impairments associated with the decision to stop development
of a delivery device platform. In the third quarter of 2011, the
company recognized a charge of $25.2
million for restructuring related to severance costs from
previously announced strategic actions to reduce the company's cost
structure.
Operating income in the third quarter of 2012 was $1.086 billion, a decrease of 32 percent compared
to the third quarter of 2011, due primarily to lower gross margin
resulting from the loss of patent exclusivity for Zyprexa,
partially offset by a decrease in total operating expenses.
Other income (expense) was a net income of $788.5 million, compared with net
expense of $83.4 million in the third quarter of 2011. The increase in other
income (expense) was driven by the early payment of the exenatide
revenue-sharing obligation from Amylin Pharmaceuticals. The company recognized
$787.8 million of income in the third quarter of 2012 related to this payment.
Lilly also expects to recognize a net gain of approximately $490 million in
2013 contingent upon transfer of exenatide commercial rights outside the U.S.
to Amylin. The third quarter of 2011 included expense from the partial
impairment of an acquired in-process research and development asset related to
Amyvid.
The effective tax rate was 29.2 percent in the third quarter of 2012, compared
with an effective tax rate of 17.7 percent in the third quarter of 2011. The
increase in the third quarter 2012 effective tax rate reflects the tax impact
of the payment received from Amylin and the expiration of the R&D tax credit
in the U.S. at the end of 2011, while the third quarter 2011 tax rate was
lower primarily due to the recognition of a $45.4 million discrete benefit
primarily as a result of the resolution of the IRS audit of the company's 2007
federal income tax return.
Net income and earnings per share increased to $1.327 billion and $1.18, respectively, compared with third-quarter
2011 net income of $1.236 billion and
earnings per share of $1.11. The
increases in net income and earnings per share were driven by the
early payment of the exenatide revenue-sharing obligation,
partially offset by lower operating income.
Third-Quarter 2012 non-GAAP Results
On a non-GAAP basis, third quarter 2012 operating income decreased 29 percent
to $1.139 billion, due primarily to lower gross margin resulting from the loss
of patent exclusivity for Zyprexa. The effective tax rate was 22.1 percent,
compared with 17.9 percent in the third quarter of 2011. The increase in the
effective tax rate reflects the expiration of the R&D tax credit at the end of
2011, as well as the recognition of the $45.4 million discrete benefit in the
third quarter 2011. Net income and earnings per share decreased 29 and 30
percent, respectively, to $888.3 million and $0.79, respectively. These
decreases were driven primarily by lower operating income.
Non-GAAP results exclude items totaling $.39 per share of income in the third
quarter of 2012 and $.02 per share of expense in the third quarter of 2011.
For further detail, see the reconciliation below as well as the footnotes to
the non-GAAP income statement later in this press release.
Third Quarter
2012 2011 % Change
Earnings per share (reported) $1.18 $1.11 6%
Asset impairment, restructuring and
other .04 .02
special charges
Income from early payment of Amylin (.43) -
revenue-sharing obligation
Earnings per share (non-GAAP) $0.79 $1.13 (30)%
Year-to-Date Results
For the first nine months of 2012, worldwide total revenue was
$16.646 billion, a decrease of 9
percent compared with the same period in 2011. Reported net income
and earnings per share were $3.261
billion and $2.92,
respectively. Net income and earnings per share, on a non-GAAP
basis, were $2.839 billion and
$2.54, respectively.
Non-GAAP results exclude items totaling $.38 per share of income for the first
nine months of 2012 and $.41 per share of expense for the first nine months of
2011. For further detail, see the reconciliation below as well as the
footnotes to the non-GAAP income statement later in this press release.
Year-to-date % Change
2012 2011
Earnings per share (reported) $2.92 $3.13 (7)%
In-process research and development
charges
associated with Boehringer Ingelheim - .23
collaboration
Asset impairment, restructuring and
other .05 .18
special charges
Income from early payment of Amylin (.43) -
revenue-sharing obligation
Earnings per share (non-GAAP) $2.54 $3.54 (28)%
Revenue Highlights
% Change % Change
(Dollars in Third Quarter Over/(Under) Year-to-Date Over/(Under)
millions)
2012 2011 2011 2012 2011 2011
Cymbalta® $1,235.8 $1,068.6 16% $3,573.7 $2,980.8 20%
Alimta 643.6 629.7 2% 1,909.9 1,823.0 5%
Humalog® 575.8 593.2 (3)% 1,779.5 1,705.5 4%
Cialis 482.1 469.8 3% 1,413.4 1,381.4 2%
Zyprexa 374.5 1,182.3 (68)% 1,316.6 3,872.4 (66)%
Forteo® 288.7 240.3 20% 836.4 687.3 22%
Humulin® 285.4 301.5 (5)% 896.1 903.2 (1)%
Evista® 247.0 270.1 (9)% 769.2 799.7 (4)%
Strattera® 145.6 153.2 (5)% 457.5 449.5 2%
Effient® 109.7 83.5 31% 336.6 211.5 59%
Animal Health 479.4 451.0 6% 1,482.4 1,210.4 22%
Total Revenue $5,443.3 $6,147.9 (11)% $16,646.0 $18,239.9 (9)%
Cymbalta
For the third quarter of 2012, Cymbalta generated $1.236 billion in revenue,
an increase of 16 percent compared with the third quarter of 2011. U.S. sales
of Cymbalta increased 19 percent, to $964.6 million, driven by higher prices
and increased demand. Revenue outside the U.S. was $271.2 million, an increase
of 5 percent, driven primarily by increased volume, partially offset by the
unfavorable impact of foreign exchange rates.
Alimta
For the third quarter of 2012, Alimta generated sales of $643.6 million, an
increase of 2 percent compared with the third quarter of 2011. U.S. sales of
Alimta increased 12 percent, to $288.8 million, driven by increased demand
and, to a lesser extent, higher prices. Sales outside the U.S. decreased 4
percent, to $354.8 million, due to lower prices in Japan and the unfavorable
impact of foreign exchange rates, partially offset by increased demand.
Humalog
For the third quarter of 2012, worldwide Humalog sales decreased 3 percent, to
$575.8 million. Sales in the U.S. decreased 2 percent to $337.3 million,
driven by lower volume. U.S. sales of Humalog have been negatively impacted by
the product's removal from a large formulary in 2012. Sales outside the U.S.
decreased 4 percent to $238.5 million, due primarily to the unfavorable impact
of foreign exchange rates, partially offset by increased volume.
Cialis
Cialis sales for the third quarter of 2012 increased 3 percent
to $482.1 million. U.S. sales of
Cialis were $205.7 million in the
third quarter, a 22 percent increase compared with the third
quarter of 2011, driven by higher prices and increased demand.
Sales of Cialis outside the U.S. decreased 8 percent, to
$276.4 million, driven by the
unfavorable impact of foreign exchange rates.
Zyprexa
In the third quarter of 2012, Zyprexa sales totaled $374.5 million, a decrease
of 68 percent compared with the third quarter of 2011 due to the loss of
patent exclusivity in the U.S. and most major international markets outside of
Japan. U.S. sales of Zyprexa decreased 88 percent to $67.8 million. Zyprexa
sales in international markets decreased 50 percent, to $306.7 million.
Forteo
Third-quarter sales of Forteo were $288.7
million, a 20 percent increase compared with the third
quarter of 2011. U.S. sales of Forteo increased 15 percent to
$127.3 million due to higher prices.
Sales outside the U.S. increased 24 percent, to $161.4 million, due to increased demand in
Japan, partially offset by the
unfavorable impact of foreign exchange rates.
Humulin
Worldwide Humulin sales decreased 5 percent in the third quarter of 2012, to
$285.4 million. U.S. sales decreased 7 percent to $131.9 million, driven
primarily by lower demand, partially offset by higher prices. U.S. sales of
Humulin have been negatively impacted by the product's removal from a large
formulary in 2012, as well as the continued decline in the market for human
insulin and the termination of the Humulin ReliOn agreement. Sales outside the
U.S. decreased 3 percent, to $153.5 million, driven primarily by the
unfavorable impact of foreign exchange rates, partially offset by increased
demand.
Evista
Evista sales for the third quarter of 2012 decreased 9 percent to $247.0
million. U.S. sales of Evista decreased 5 percent to $168.3 million, driven by
decreased demand, partially offset by higher prices. Sales outside the U.S.
decreased 16 percent to $78.7 million, driven by lower volume and to a lesser
extent, the unfavorable impact of foreign exchange rates.
Strattera
During the third quarter of 2012, Strattera generated $145.6 million of sales,
a decrease of 5 percent compared with the third quarter of 2011. U.S. sales
decreased 7 percent to $90.0 million, due to decreased demand. Sales outside
the U.S. decreased 2 percent to $55.6 million due to the unfavorable impact of
foreign exchange rates and lower prices, partially offset by increased volume.
Effient
Effient sales were $109.7 million in the third quarter of 2012, an increase of
31 percent compared with the third quarter of 2011. U.S. Effient sales
increased 31 percent to $80.4 million, driven by increased demand and, to a
lesser extent, higher prices. Sales outside the U.S. increased 32 percent to
$29.3 million due to higher demand, partially offset by the unfavorable impact
of foreign exchange rates.
Erbitux®
Lilly recognizes net royalties received from its Erbitux collaboration
partners and revenue from manufactured product sold to these partners. For the
third quarter of 2012, Lilly recognized total revenue of $86.6 million for
Erbitux, a decrease of 11 percent from the third quarter of 2011, due to the
timing of product shipments to collaboration partners.
Animal Health
Worldwide sales of animal health products in the third quarter
of 2012 were $479.4 million, an
increase of 6 percent compared with the third quarter of 2011. U.S.
sales grew 16 percent, to $275.3
million, due primarily to increased demand for companion
animal products. Sales outside the U.S. decreased 4 percent, to
$204.1 million, driven primarily by
the unfavorable impact of foreign exchange rates and lower prices,
partially offset by increased volume. The growth of animal health
products outside the U.S. was negatively impacted by economic
conditions in certain markets.
2012 Financial Guidance
The company has updated its 2012 earnings per share guidance and now expects
full-year 2012 earnings per share to be in the range of $3.68 to $3.78 on a
reported basis. The company's earnings per share on a non-GAAP basis is still
expected to be in the range of $3.30 to $3.40. Certain other elements of the
company's 2012 financial guidance have also been updated, as noted below.
2012 2011
Expectations Results % Change
Earnings per share (reported) $3.68 to $3.78 $3.90 (6)% to (3)%
Income from early payment of Amylin
revenue-sharing obligation (.43) -
In-process research and development
charge
associated with Boehringer Ingelheim - .23
collaboration
Asset impairment, restructuring, other
special .05 .29
charges
Earnings per share (non-GAAP) $3.30 to $3.40 $4.41 (25)% to
(23)%
Numbers in the 2011 full-year column do not add due to
rounding.
The company still anticipates 2012 revenue of between $21.8 and $22.8 billion.
This includes an expected decline of over $3 billion in Zyprexa sales due to
patent expirations in most markets outside of Japan. The reduction in revenue
due to Zyprexa patent expirations is expected to be partially offset by growth
in key franchises including Cymbalta, Cialis, Alimta, Humalog and Forteo, as
well as continued growth of newer products such as Effient and Axiron®. The
company also anticipates strong, double-digit revenue growth from its Elanco
Animal Health business. Both Japan and Emerging Markets are expected to post
continued strong underlying volume growth; however, overall revenue growth in
these markets in 2012 will be adversely affected by pricing actions in Japan
and by the expected impact of patent expirations, including Zyprexa, in some
emerging market countries.
The company still anticipates that gross margin as a percent of
revenue will be approximately 78 percent in 2012.
As a result of ongoing productivity efforts, the company still expects to keep
2012 operating expenses essentially flat compared to 2011. Marketing, selling
and administrative expenses are still expected to decline and be in the range
of $7.3 billion to $7.7 billion. Research and development expense is still
expected to be flat to increasing and in the range of $5.0 billion to $5.3
billion.
On a reported basis, other income and deductions is now expected
to be in a range between $640 million and
$715 million of net income in 2012. On a non-GAAP basis,
other income and deductions is now expected to be in a range
between $150 million and $75 million
of net expense in 2012.
On a reported basis, the 2012 tax rate is still expected to be approximately
23.5 percent. On a non-GAAP basis, the 2012 tax rate is still expected to be
approximately 21 percent. Both tax rates assume the extension of the R&D tax
credit for the full year 2012.
Operating cash flows in 2012 are still expected to be more than sufficient to
fund capital expenditures of approximately $800 million, as well as
anticipated business development activity, the company's current dividend and
stock repurchases.
Webcast of Conference Call
As previously announced, investors and the general public can
access a live webcast of the third-quarter 2012 financial results
conference call through a link on Lilly's website at www.lilly.com.
The conference call will be held today from 9:00 a.m. to 10:00 a.m. Eastern Daylight Time
(EDT) and will be available for replay via the website.
Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of pharmaceutical products by applying the latest research from its
own worldwide laboratories and from collaborations with eminent scientific
organizations. Headquartered in Indianapolis, Ind., Lilly provides answers -
through medicines and information - for some of the world's most urgent
medical needs. Additional information about Lilly is available at
www.lilly.com.
This press release contains management's current intentions and expectations
for the future, all of which are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The words "estimate", "project", "intend", "expect",
"believe", "target" and similar expressions are intended to identify
forward-looking statements. For example, the statements in the section
entitled "2012 Financial Guidance" constitute forward-looking statements.
Actual results may differ materially from these and other forward-looking
statements due to various factors. There are significant risks and
uncertainties in pharmaceutical research and development. There can be no
guarantees with respect to pipeline products that the products will receive
the necessary clinical and manufacturing regulatory approvals or that they
will prove to be commercially successful. Pharmaceutical products can develop
unexpected safety or efficacy concerns. The company's results may also be
affected by such factors as competitive developments affecting current
products; market uptake of recently launched products; the timing of
anticipated regulatory approvals and launches of new products; regulatory
actions regarding currently marketed products; issues with product supply;
regulatory changes or other developments; regulatory compliance problems or
government investigations; patent disputes; changes in patent law or
regulations related to data-package exclusivity; other litigation involving
current or future products; the impact of governmental actions regarding
pricing, importation, and reimbursement for pharmaceuticals, including U.S.
health care reform; changes in tax law; asset impairments and restructuring
charges; acquisitions and business development transactions; and the impact of
exchange rates and global macroeconomic conditions. For additional information
about the factors that could cause actual results to differ materially from
forward-looking statements, please see the company's latest Form 10-Q and Form
10-K filed with the U.S. Securities and Exchange Commission. You should not
place undue reliance on forward-looking statements, which speak only as of the
date of this release. Except as is required by law, the company expressly
disclaims any obligation to publicly release any revisions to forward-looking
statements to reflect events after the date of this release.
# # #
Alimta® (pemetrexed, Lilly)
AmyvidTM (florbetapir, Lilly)
Cialis® (tadalafil, Lilly)
Cymbalta® (duloxetine hydrochloride, Lilly)
Effient® (prasugrel, Lilly)
Erbitux® (cetuximab, ImClone Systems, Lilly)
Evista® (raloxifene hydrochloride, Lilly)
Forteo® (teriparatide of recombinant DNA origin injection,
Lilly)
Humalog® (insulin lispro injection of recombinant DNA origin,
Lilly)
Humulin® (human insulin of recombinant DNA origin, Lilly)
Strattera® (atomoxetine hydrochloride, Lilly)
Tradjenta® (linagliptin, Boehringer Ingelheim)
Zyprexa® (olanzapine, Lilly)
Eli Lilly and Company Employment Information
September 30, 2012 December 31, 2011
Worldwide Employees 38,600 38,080
Eli Lilly and Company
Operating Results (Unaudited) - REPORTED
(Dollars in millions, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
2012 2011 % Chg. 2012 2011 % Chg
Total Revenue $ 5,443.3 $ 6,147.9 (11)% $
16,646.0 $ 18,239.9 (9)%
Cost of sales 1,203.6 1,338.1 (10)% 3,548.2 3,746.2 (5)%
Research and development 1,342.8 1,280.9 5% 3,815.0 3,665.5 4%
Marketing, selling and 1,757.4 1,917.8 (8)% 5,536.0 5,746.5 (4)%
administrative
Acquired in-process - - NM - 388.0 NM
research and NM
development
Asset impairments, 53.3 25.2 NM 77.1 233.8 (67)%
restructuring and
other special charges
Operating income 1,086.2 1,585.9 (32)%
3,669.7 4,459.9 (18)%
Net interest income (21.3) (22.8) (56.3) (80.4)
(expense) 787.8 - 787.8 -
Other income (expense) -
Special
Net other income (expense) 22.0 (60.6) (5.5) (71.8)
Other income (expense) 788.5 (83.4) NM
726.0 (152.2) NM
Income before income taxes 1,874.7 1,502.5 25% 4,395.7 4,307.7 2%
Income taxes 548.1 266.2 NM 1,134.4 818.2 39%
Net income $ 1,326.6 $ 1,236.3 7% 3,261.3 3,489.5 (7)%
Earnings per share - basic $ 1.18 $ 1.11 6% 2.92 3.13 (7)%
and diluted
Dividends paid per share $ .49 $ .49 0%
1.47 1.47 0%
Weighted-average shares
outstanding (thousands) -
basic 1,119,617 1,113,820 1,118,395 1,113,324
Weighted-average shares
outstanding (thousands) -
diluted 1,119,641 1,113,841
1,118,420 1,113,347
NM - not meaningful
Eli Lilly and Company
Operating Results (Unaudited) - Non-GAAP
(Dollars in millions, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
2012(a) 2011(b) % Chg. 2012(a) 2011(b) % Chg.
Total Revenue $ 5,443.3 $ 6,147.9 (11)% $
16,646.0 $ 18,239.9 (9)%
Cost of sales 1,203.6 1,338.1 (10)% 3,548.2 3,746.2 (5)%
Research and development 1,342.8 1,280.9 5% 3,815.0 3,665.5 4%
Marketing, selling and 1,757.4 1,917.8 (8)% 5,536.0 5,746.5 (4)%
administrative
Operating income 1,139.5 1,611.1 (29)%
3,746.8 5,081.7 (26)%
Net interest income (21.3) (22.8) (56.3) (80.4)
(expense)
Net other income (expense) 22.0 (60.6) (5.5) (71.8)
Other income (expense) 0.7 (83.4) NM
(61.8) (152.2) (59)%
Income before income taxes 1,140.2 1,527.7 (25)% 3,685.0 4,929.5 (25)%
Income taxes 251.9 273.9 (8)%
846.2 984.9 (14)%
Net income $ 888.3 $ 1,253.8 (29)% $ 2,838.8 $ 3,944.6 (28)%
Earnings per share - basic $ .79 $ 1.13 (30)% $
2.54 $ 3.54 (28)%
and diluted
Dividends paid per share $ .49 $ .49 0% $
1.47 $ 1.47 0%
Weighted-average shares
outstanding (thousands) -
basic 1,119,617 1,113,820 1,118,395 1,113,324
Weighted-average shares
outstanding (thousands) -
diluted 1,119,641 1,113,841 1,118,420 1,113,347
(a) The third quarter 2012 financial statements have been adjusted to
eliminate a charge of $53.3 million (pretax) related to an asset impairment of
a delivery device platform, or $0.04 per share (after-tax). Additionally the
third quarter financial statements have been adjusted to eliminate other
income related to the early payment of Amylin financial obligations of $787.8
million (pretax), or $0.43 per share (after-tax). The year-to-date 2012
financial statements have been adjusted also to eliminate a charge of $23.8
million (pretax), or $0.01 per share (after-tax) primarily related to the
withdrawal of Xigris.
(b) The third quarter 2011 has been adjusted to eliminate a restructuring
charge of $25.2 million (pretax), or $0.02 per share (after-tax). The
year-to-date 2011 financial statements have been adjusted to eliminate total
restructuring charges of $233.8 million (pretax), or $0.18 per share
(after-tax). These charges are related to severance costs from previously
announced strategic actions that the company is taking to reduce its cost
structure and global workforce. In addition, the year-to-date 2011 financial
statements have been adjusted to eliminate a charge of $388.0 million
(pretax), or $0.23 per share (after-tax), for acquired in-process research and
development associated with the collaboration with Boehringer Ingelheim.
