Eli Lilly 2008 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2008 Eli Lilly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

FINANCIALS
15
are many proposals for additional cost-containment
measures, including proposals that would directly or
indirectly impose additional price controls or reduce the
value of our intellectual property protection.
OPERATING RESULTS—2008
Sales
Our worldwide sales for 2008 increased 9 percent, to
$20.38 billion, driven primarily by growth of Cymbalta,
Cialis®, Alimta, Humalog®, and Gemzar®. Worldwide sales
volume increased 5 percent, while foreign exchange rates
contributed 3 percent, and selling prices contributed
2 percent. (Numbers do not add due to rounding.) Sales in
the U.S. increased 8 percent, to $10.93 billion, driven pri-
marily by increased sales of Cymbalta, Humalog, Cialis,
and Alimta. Sales outside the U.S. increased 11 percent,
to $9.44 billion, driven primarily by the sales growth of
Alimta, Cialis, Cymbalta, and Humalog.
Zyprexa, our top-selling product, is a treatment for
schizophrenia, acute mixed or manic episodes associ-
ated with bipolar I disorder, and bipolar maintenance.
Zyprexa sales in the U.S. decreased 1 percent in 2008,
driven by lower demand, partially offset by higher
prices. Sales outside the U.S. decreased 1 percent,
driven by decreased demand and to a lesser extent,
lower prices, partially offset by the favorable impact of
foreign exchange rates. Demand outside the U.S. was
unfavorably impacted by generic competition in Germa-
ny and Canada. As noted previously, generic olanzapine
has been withdrawn from the German market as of the
beginning of 2009.
Sales of Cymbalta, a product for the treatment
of major depressive disorder, diabetic peripheral
neuropathic pain, generalized anxiety disorder, and
fi bromyalgia, increased 23 percent in the U.S., driven
by increased demand and, to a lesser extent, higher
prices. Sales outside the U.S. increased 66 percent,
driven by increased demand and, to a lesser extent,
the favorable impact of foreign exchange rates and
higher prices. Higher demand outside the U.S. refl ects
increased demand in established markets as well as
recent launches in new markets.
Sales of Humalog, our injectable human insulin
analog for the treatment of diabetes, increased 14 per-
cent in the U.S., driven by increased demand and higher
The following table summarizes our net sales activity in 2008 compared with 2007:
Year Ended Year Ended Percent
December 31, 2008 December 31, 2007 Change
Product U.S.1 Outside U.S. Total Total from 2007
(Dollars in millions)
Zyprexa . . . . . . . . . . . . . . . . . . . . . . $ 2,202.5 $2,493.6 $ 4,696.1 $ 4,761.0 (1)
Cymbalta. . . . . . . . . . . . . . . . . . . . . 2,253.8 443.3 2,697.1 2,102.9 28
Humalog . . . . . . . . . . . . . . . . . . . . . 1,008.4 727.4 1,735.8 1,474.6 18
Gemzar . . . . . . . . . . . . . . . . . . . . . . 734.8 985.0 1,719.8 1,592.4 8
Cialis2 . . . . . . . . . . . . . . . . . . . . . . . 539.0 905.5 1,444.5 1,143.8 26
Alimta . . . . . . . . . . . . . . . . . . . . . . . 561.9 592.8 1,154.7 854.0 35
Animal health products. . . . . . . . . 537.3 556.0 1,093.3 995.8 10
Evista . . . . . . . . . . . . . . . . . . . . . . . . 700.5 375.1 1,075.6 1,090.7 (1)
Humulin® . . . . . . . . . . . . . . . . . . . . 380.9 682.3 1,063.2 985.2 8
Forteo . . . . . . . . . . . . . . . . . . . . . . . 489.9 288.8 778.7 709.3 10
Strattera® . . . . . . . . . . . . . . . . . . . . 437.8 141.7 579.5 569.4 2
Other pharmaceutical products . . 1,087.6 1,252.1 2,339.7 2,354.4 (1)
Total net sales . . . . . . . . . . . . . . $10,934.4 $9,443.6 $20,378.0 $18,633.5 9
1U.S. sales include sales in Puerto Rico.
2Prior to the acquisition of ICOS in late January 2007, the Cialis sales shown do not include sales in the joint-venture territories of Lilly
ICOS LLC (North America, excluding Puerto Rico, and Europe). Our share of the joint-venture territory sales for January 2007, net of
expenses and income taxes, is reported in other—net in our consolidated statements of operations. Subsequent to the acquisition, all
Cialis product sales are reported in our net sales. Worldwide 2008 sales for Cialis grew 19 percent from 2007 sales of $1.22 billion.
Key Contributors to 2008 Sales Growth
($ in millions represent growth in product
sales; percentages represent changes
from 2007)
Five products and a product line—
Cymbalta, Alimta, Cialis, Humalog, Gemzar,
and Animal Health—generated $9.8 billion
in net sales during 2008, an increase of
$1.7 billion over 2007, and accounted for
96 percent of our sales growth. The growth
of these products and product line was
primarily driven by volume increases and
the inclusion of U.S. Posilac sales.
Cymbalta
Alimta
Cialis
Humalog
Gemzar
Animal Health
$261 +18%
$301 +26%
$594 +28%
$301 +35%
$127 +8%
$98 +10%
600 -
500 -
400 -
300 -
200 -
100 -
0 -