Eli Lilly 2009 Annual Report Download - page 30

The following table summarizes the activity related to repurchases of our equity securities during the
fourth quarter ended December 31, 2009:
Period
Total Number of
Shares Purchased
(in thousands)
(a)
Average Price Paid
per Share
(b)
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs
(c)
Approximate Dollar Value
of Shares that May Yet Be
Purchased Under the
Plans or Programs
(Dollars in millions)
(d)
October 2009 . . . . . 0 $ — — $419.2
November 2009 . . . 1 34.01 — 419.2
December 2009 . . . 0 — — 419.2
Total . .......... 1 —
The amounts presented in columns (a) and (b) above represent purchases of common stock related to
employee stock option exercises. The amounts presented in columns (c) and (d) in the above table
represent activity related to our $3.00 billion share repurchase program announced in March 2000. As of
December 31, 2009, we have purchased $2.58 billion related to this program.
Item 6. Selected Financial Data
You can find selected financial data for each of our five most recent fiscal years in Item 8 under “Selected
Financial Data (unaudited).” That information is incorporated here by reference.
Item 7. Management’s Discussion and Analysis of Results of
Operations and Financial Condition
RESULTS OF OPERATIONS
EXECUTIVE OVERVIEW
This section provides an overview of our financial results, recent product and late-stage pipeline
developments, significant business development, and legal, regulatory, and other matters affecting our
company and the pharmaceutical industry.
Financial Results
We achieved revenue growth of 7 percent in 2009, which was primarily driven by the collective growth of
Alimta, Cymbalta, Humalog, and Zyprexa and the inclusion of Erbitux revenue as a result of the ImClone
Systems Inc. (Imclone) acquisition in November 2008. The impact of changes in foreign currencies
compared to the U.S. dollar on international inventories sold during the year decreased our cost of sales
in 2009 and increased our cost of sales in 2008, which contributed to an improvement in gross margin.
Marketing, selling, and administrative expenses grew at a slower rate than revenue, while our investment
in research and development grew at a greater rate than sales. We incurred income tax expense of
$1.03 billion in 2009 resulting in an effective tax rate of 19.2 percent. Earnings increased to $4.33 billion,
and earnings per share increased to $3.94 per share, in 2009 as compared to a net loss of $2.07 billion,
and a loss per share of $1.89 in 2008. Net income comparisons between 2009 and 2008 are affected by the
impact of the following significant items:
2009
Acquisitions (Note 3)
• We incurred acquired in-process research and development (IPR&D) charges associated with an in-
licensing arrangement with Incyte Corporation (Incyte) of $90.0 million (pretax), which decreased
earnings per share by $.05.
Asset Impairments and Related Restructuring and Other Special Charges (Notes 5 and 14)
• We recognized asset impairments, restructuring, and other special charges of $462.7 million (pretax),
which decreased earnings per share by $.29 for asset impairments and restructuring primarily
related to the sale of our Tippecanoe Laboratories manufacturing site to an affiliate of Evonik
Industries AG.
• We incurred pretax charges of $230.0 million representing the currently probable and estimable
exposures in connection with the claims of several states related to Zyprexa, which decreased
earnings per share by $.13.
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FORM 10-K