Eli Lilly 2013 Annual Report Download - page 87

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73
Note 19: Segment Information
We operate in two business segments—human pharmaceutical products and animal health. Our business
segments are distinguished by the ultimate end user of the product—humans or animals. Performance is
evaluated based on profit or loss from operations before income taxes. The accounting policies of the
individual segments are the same as those described in the summary of significant accounting policies in
Note 1 to the consolidated financial statements.
Our human pharmaceutical products segment includes the discovery, development, manufacturing,
marketing, and sales of human pharmaceutical products worldwide in the following therapeutic areas:
endocrinology, neuroscience, oncology, cardiovascular, and other. Our endocrinology products consist
primarily of Humalog®, Humulin®, Forteo®, Evista®, Humatrope®, Trajenta, and Axiron®. Neuroscience
products include Cymbalta®, Zyprexa®, Strattera®, and Prozac. Cymbalta, which had U.S. sales of $3.96
billion in 2013, lost patent exclusivity in the U.S. in December 2013, resulting in the immediate entry of several
generic competitors. Oncology products consist primarily of Alimta, Erbitux, and Gemzar®. Cardiovascular
products consist primarily of Cialis®, Effient, and ReoPro®. The other pharmaceuticals category includes anti-
infectives, primarily Vancocin® and Ceclor™, and other miscellaneous pharmaceutical products and services.
Our animal health segment, operating through our Elanco animal health division, includes the development,
manufacturing, marketing, and sales of animal health products worldwide for both food and companion
animals. Animal health products include Rumensin®, Posilac®, Tylan®, Paylean®, Optaflexx® and other
products for livestock and poultry, as well as Trifexis®, Comfortis®, and other products for companion animals.
Most of our pharmaceutical products are distributed through wholesalers that serve pharmacies, physicians
and other health care professionals, and hospitals. For the years ended December 31, 2013, 2012, and 2011,
our three largest wholesalers each accounted for between 10 percent and 19 percent of consolidated total
revenue. Further, they each accounted for between 9 percent and 18 percent of accounts receivable as of
December 31, 2013 and 2012. Animal health products are sold primarily to wholesale distributors.
We manage our assets on a total company basis, not by operating segment, as the assets of the animal
health business are largely intermixed with those of the pharmaceutical products business. Therefore, our
chief operating decision maker does not review any asset information by operating segment and, accordingly,
we do not report asset information by operating segment.
We are exposed to the risk of changes in social, political, and economic conditions inherent in foreign
operations, and our results of operations and the value of our foreign assets are affected by fluctuations in
foreign currency exchange rates.