Financial Report: Lilly

Lilly

2Q Revenues: $3.9 billion (+5%)

2Q Earnings: $822 million (loss of $252 million 2Q2005)*

YTD Revenues: $7.6 billion (+6%)

YTD Earnings: $1.7 billion (earnings were $484.6 million YTD2005)

Comments: Sales increase for the quarter was driven by the company’s newer products and accelerating sales of Cymbalta, up 92% to $310.4 million. Newer products–Alimta, Byetta, Cialis, Cymbalta, Forteo, Strattera, Symbyax, Xigris and Yentreve–collectively grew 48% to $920.2 million, and accounted for 24% of total sales, up from 17% in 2Q2005. Lilly ICOS joint-venture income was $22.5 million, compared with a loss of $0.5 million in 2Q2005. This increase was due to growing Cialis sales and decreased selling and marketing expenses. The company submitted an NDA for Cymbalta for generalized anxiety disorder in the quarter.

*Results for the quarter and YTD reflect a product liability charge for Zyprexa of $1.1 billion.