Eli Lilly 2012 Annual Report Download - page 2

Year in Review
1 Financial Highlights
2 Letter to Shareholders
6 Progress Against Alzheimer’s Disease
10 Pipeline of Molecules in Clinical Development
Form 10-K
3 Business
16 Risk Factors
19 Properties
20 Legal Proceedings
23 Management’s Discussion and Analysis of Results of
Operations and Financial Condition
40 Consolidated Statements of Operations
41 Consolidated Statements of Comprehensive Income
42 Consolidated Balance Sheets
43 Consolidated Statements of Cash Flows
44 Segment Information
46 Selected Quarterly Data
47 Selected Financial Data
49 Notes to Consolidated Financial Statements
82 Management’s Reports
84
Reports of Independent Registered Public Accounting Firm
For more information on Lilly’s commitment to corporate
responsibility, please see the inside back cover of this report.
THE LILLY PROMISE
Our Mission
Lilly makes medicines that help people live longer,
healthier, more active lives.
Our Values
Integrity | Excellence | Respect for People
We promise to operate our business with absolute
integrity and earn the trust of all, set the highest
standards for our performance and for the performance
of our products, and demonstrate caring and respect
for all those who share in our mission and are touched
by our work.
Our Vision
We will make a signicant contribution to humanity by
improving global health in the 21st century. Starting
with the work of our scientists, we will place improved
outcomes for individual patients at the center of what
we do. We will listen carefully to understand patient
needs and work with health care partners to provide
meaningful benets for the people who depend on us.
Our Strategy
We will create value for all our stakeholders by accel-
erating the ow of innovative medicines that provide
improved outcomes for individual patients.
Proxy Statement
1 Notice of 2013 Annual Meeting and Proxy Statement
2 Proxy Statement Overview
4 Board of Directors
9 Director Compensation
11 Highlights of the Company’s Corporate Governance Guidelines
16 Committees of the Board of Directors
16 Membership and Meetings of the Board and Its Committees
17 Directors and Corporate Governance Committee Matters
18 Audit Committee Matters
20 Compensation Committee Matters
22 Compensation Discussion and Analysis
37 Executive Compensation
37 Summary Compensation Table
47 Ownership of Company Stock
48 Items of Business To Be Acted Upon at the Meeting
52 Meeting and Voting Logistics
54 Other Matters
55 Executive Committee and Senior Leadership
56 Corporate Information
57 Annual Meeting Admission Ticket
PUTTING THE PIECES TOGETHER
In 2012, Eli Lilly and Company saw promising signs
that we’re beginning to piece together the puzzle that is
Alzheimer’s disease—a disease that has so far deed the
best eorts of medical science. While most of the public
attention was on Phase III trial results for solanezumab, our
monoclonal antibody being studied as a potential therapy
for patients with Alzheimer’s disease, we continued to
advance a multifaceted eort. (Please see pages 6–9.)
At the same time, we also began to complete the puzzle of
how we navigate through the current “YZ” period of patent
expirations and return to growth in the years that follow. In
the year after our Zyprexa® patent expired in most major
markets, we met our nancial performance goals, and
received encouraging data from late-stage clinical trials for
potential medicines across our therapeutic areas.
Lilly’s progress against Alzheimer’s and other diseases
reects our resolute commitment to innovation, and
exemplies the work of Lilly scientists in neuroscience,
cancer, diabetes, autoimmunity, and other therapeutic
areas. That work goes on today, and there is much more
to do. But our scientic achievements and operating
performance in 2012 strengthen our condence that new
and better medicines for patients around the world will
continue to ow from our laboratories.
assets and expertise, along with our nancial resourc
health organizations to nd new solutions to the rising
signicant contribution to humanity by improving global
health in the 21st century. We do this, rst and fore
• The Lilly NCD Partnership, launched in 2011, will
provide $30 million over ve years to ght NCDs in
• The Lilly MDR-TB Partnership, launched in 2003,
• Lilly Clinical Trial Registry
• Lilly Grant Registry
• Lilly Physician Payment Registry
• Lilly Political Contributions
Partnership for Prescription Assistance (program sponsored by America’s pharmaceutical research companies):
LillyPAD, an ofcial blog of Eli Lilly and Company:
• In 2011, we announced Lilly TruAssist, an easy-to-
• Through a partnership with Heifer International
We put special emphasis on exibility in the workplace,
Connecting Hearts Abroad, a program that sends 200
Our commitment to corporate responsibility is reected
in our ongoing support for the United Nations Global