Eli Lilly 2005 Annual Report Download - page 20

FI NA NCI A L S
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Excluding the impact of exchange rates, sales of Zyprexa
outside the U.S. increased 13 percent in 2004.
Diabetes care products had aggregate worldwide
revenues of $2.61 billion in 2004, an increase of 2 per-
cent. Diabetes care revenues in the U.S. decreased
6 percent, to $1.49 billion. Diabetes care revenues
outside the U.S. increased 14 percent, to $1.12 billion.
Humulin sales in the U.S. decreased 19 percent, driven
primarily by volume declines due to competitive pres-
sures. Humulin sales outside the U.S. increased 7 per-
cent. Humalog sales in the U.S. increased 3 percent as
increased prices offset slight volume declines. Humalog
sales outside the U.S. increased 16 percent, to $416.2
million. Actos revenues increased 5 percent in 2004.
Sales of Gemzar increased 8 percent in the U.S.
largely due to the May 2004 approval for the treatment
of late-stage metastatic breast cancer. Gemzar sales
increased 31 percent outside the U.S., driven by strong
volume growth in a number of cancer indications as
well as favorable foreign exchange rates.
Sales of Evista increased 1 percent in the U.S. due
to continued competitive pressures. Outside the U.S.,
Evista maintained a strong growth rate of 32 percent,
driven by volume growth in several markets and the
early 2004 launch of the product in Japan.
In 2004, Strattera generated an 80 percent increase
over 2003 sales despite a very competitive landscape.
In December 2004, we added a bolded warning to the
product label, which indicates that the medication
should be discontinued in patients with jaundice (yellow-
ing of the skin or whites of the eyes) or in the event of
laboratory evidence of liver injury.
Forteo generated $238.6 million in sales in 2004,
continuing the product’s strong growth trajectory fol-
lowing its U.S. launch in December 2002 and European
launches in late 2003 and during 2004.
The $552.3 million of worldwide Cialis sales in 2004,
an increase of 172 percent compared to 2003, comprises
$130.6 million of sales in our territories, which are re-
ported in our net sales, and $421.7 million of sales in the
joint-venture territories. Within the joint-venture territo-
ries, U.S. sales of Cialis were $206.6 million for 2004.
Animal health product sales in the U.S. increased
9 percent, while sales outside the U.S. increased 10 per-
cent, led by Tylan®, Rumensin, and Paylean.
Gross Margin, Costs, and Expenses
The 2004 gross margin decreased to 76.7 percent of sales
compared with 78.7 percent for 2003. The decrease was
due primarily to continued investment in our manufac-
turing technical capabilities and capacity and the impact
of foreign exchange rates, offset partially by favorable
changes in product mix due to growth in sales of higher
margin products.
Operating expenses increased 9 percent in 2004.
Investment in research and development increased
15 percent, to $2.69 billion, due to increased clinical
trial and development expenses and increased incentive
The following table summarizes our net sales activity in 2004 compared with 2003:
Year Ended Year Ended Percent
December 31, 2004 December 31, 2003 Change
Product U.S.1 Outside U.S. Total Total from 2003
(Dollars in millions)
Zyprexa . . . . . . . . . . . . . . . . . . . . . . $2,422.2 $1,997.6 $ 4,419.8 $ 4,276.9 3
Gemzar . . . . . . . . . . . . . . . . . . . . . . 565.1 649.3 1,214.4 1,021.7 19
Humalog . . . . . . . . . . . . . . . . . . . . . 685.4 416.2 1,101.6 1,021.3 8
Evista . . . . . . . . . . . . . . . . . . . . . . . . 667.9 344.8 1,012.7 922.1 10
Humulin. . . . . . . . . . . . . . . . . . . . . . 422.7 575.0 997.7 1,060.4 (6)
Animal health products . . . . . . . . . 338.9 459.8 798.7 726.6 10
Strattera . . . . . . . . . . . . . . . . . . . . . 656.4 10.3 666.7 370.3 80
Fluoxetine products . . . . . . . . . . . . 327.3 231.7 559.0 645.1 (13)
Anti-infectives. . . . . . . . . . . . . . . . . 110.2 367.8 478.0 489.9 (2)
Actos . . . . . . . . . . . . . . . . . . . . . . . . 340.4 112.5 452.9 431.2 5
Humatrope . . . . . . . . . . . . . . . . . . . 204.8 225.5 430.3 370.9 16
ReoPro. . . . . . . . . . . . . . . . . . . . . . . 175.4 187.4 362.8 364.4 0
Forteo . . . . . . . . . . . . . . . . . . . . . . . 198.0 40.6 238.6 65.3 NM
Xigris . . . . . . . . . . . . . . . . . . . . . . . . 123.3 78.5 201.8 160.4 26
Alimta . . . . . . . . . . . . . . . . . . . . . . . 121.8 20.8 142.6 — NM
Cialis2. . . . . . . . . . . . . . . . . . . . . . . . 1.4 129.2 130.6 73.5 78
Cymbalta . . . . . . . . . . . . . . . . . . . . . 92.7 1.2 93.9 — NM
Symbyax . . . . . . . . . . . . . . . . . . . . . 70.1 0.1 70.2 — NM
Other pharmaceutical products . . 144.5 341.1 485.6 582.5 (17)
Total net sales. . . . . . . . . . . . . . . $7,668.5 $6,189.4 $13,857.9 $12,582.5 10
NM—Not meaningful
1 U.S. sales include sales in Puerto Rico.
2 Cialis had worldwide 2004 sales of $552.3 million, an increase of 172 percent compared with 2003. The sales shown in the tables above represent results
in the territories in which we market Cialis exclusively. The remaining sales relate to the joint-venture territories of Lilly ICOS LLC (North America,
excluding Puerto Rico, and Europe). Our share of the joint-venture territory sales, net of expenses, is reported in net other income in our consolidated
income statement.