Eli Lilly 2003 Annual Report Download

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2003
Answers for Shareholders
Eli Lilly and Company Annual Report, Notice of Annual Meeting, and Proxy Statement

Table of contents

  • Page 1
    2003 Answers for Shareholders Eli Lilly and Company Annual Report, Notice of Annual Meeting, and Proxy Statement

  • Page 2
    ... Auditors PROXY STATEMENT 45 47 52 63 64 66 72 73 75 81 82 Notice of 2004 Annual Meeting and Proxy Statement General Information Board of Directors Directors and Corporate Governance Committee Matters Audit Committee Matters Executive Compensation Performance Graph Ownership of Company Stock...

  • Page 3
    ... FINANCIAL HIGHLIGHTS Eli Lilly and Company and Subsidiaries (Dollars in millions, except per-share data) Year Ended December 31 2003 2002 Change % Net sales ...Research and development ...Research and development as a percent of sales ...Net income ...Earnings per share-basic ...Earnings per...

  • Page 4
    ... in brand new tools and technologies. For example, our acquisition of AME-Applied Molecular Evolution-will afford us access to cutting-edge technologies for creating custom-designed biotechnology drugs. In addition, one of our e-business ventures, InnoCentive, has created a global online forum for...

  • Page 5
    ... a great deal of work in manufacturing to build world-class manufacturing capabilities and address quality issues in this area. We've made significant investments in modernizing our facilities, as well as creating new capacity for our growth products. We've hired and transferred into manufacturing...

  • Page 6
    ... patent in the U.S. We believe we are well positioned for future growth and, judging by our strong PE multiple through 2003, many investors share these expectations. Q: Zyprexa is facing many challenges. What reassurance can you give shareholders about the future of this key product? A: Zyprexa...

  • Page 7
    ... will become executive vice president for pharmaceutical operations, assuming Mr. Mayr's former role as well as maintaining his previous responsibilities for pharmaceutical products and corporate development. Finally, in 2003, we were delighted to welcome a new member of our board of directors, Sir...

  • Page 8
    ...ciency for replacement therapy for adult growth hormone deficiency (1996) for short stature caused by Turner syndrome (1997) for idiopathic short stature (2003) for type 1 and type 2 diabetes 1998 Evista® 1996 Zyprexa® Humalog® 1995 Gemzar® ReoPro® 1987 Humatrope® 1982 Humulin® 6

  • Page 9
    PIPELINE New Drug Applications Declared Approvable by the U.S. Food and Drug Administration Cymbaltaâ„¢ for major depressive disorder (codeveloping with Boehringer Ingelheim in major markets, excluding the U.S. and Japan) (copromoting with Quintiles Transnational Corp. in the U.S.) for women with ...

  • Page 10
    ... pipeline developments, progress in improving our manufacturing operations, expected acquisition of Applied Molecular Evolution, Inc. (AME), in 2004, and legislative-related activities affecting the pharmaceutical industry. Financial Summary Net income was $2.56 billion, or $2.37 per share, in 2003...

  • Page 11
    ... percent of total net sales, compared with $6.7 billion, or 61 percent in 2002. 100% Acquisition of Applied Molecular Evolution, Inc. In November 2003, we agreed to acquire AME in a cash and stock transaction for approximately $400 million, net of the cash acquired. We expect to close the merger in...

  • Page 12
    ... product with net sales in excess of $4 billion. $4,277 OPERATING RESULTS-2003 Sales Our worldwide sales for 2003 increased 14 percent, to $12.58 billion, due primarily to the strong performance of Zyprexa, a treatment for schizophrenia, acute bipolar mania, and bipolar maintenance; diabetes care...

  • Page 13
    ... by favorable changes in product mix due to growth in higher margin products such as Zyprexa, Gemzar, Evista, and the newly launched Strattera. 1999 79.0% 2000 2001 2002 2003 Operating expenses (the aggregate of research and development and marketing and administrative expenses) increased...

  • Page 14
    ... interest and miscellaneous income. We report our 50 percent share of the operating results of the Lilly ICOS joint venture in our net other income. For 2003, our net loss from the joint venture was $52.4 million, compared with $37.8 million in 2002. The effective tax rate for 2003 was 21.5 percent...

  • Page 15
    ...STATEMENTS OF INCOME Eli Lilly and Company and Subsidiaries (Dollars in millions, except per-share data) Year Ended December 31 2003 2002 2001 Net sales ... $12,582.5 $11,077.5 $11,542.5 Cost of sales ...Research and development ...Marketing and administrative ...Acquired in-process research...

  • Page 16
    ... in research and development efforts in 2002. Marketing and administrative expenses remained essentially ï¬, at compared with 2001 despite the continued expansion of our worldwide sales force and increased marketing efforts in support of our growth products and upcoming product launches. Operating...

  • Page 17
    ... Common stock-no par value Authorized shares: 3,200,000,000 Issued shares: 1,124,677,097 (2003) and 1,123,451,408 (2002)...Additional paid-in capital ...Retained earnings ...Employee benefit trust ...Deferred costs-ESOP ...Accumulated other comprehensive loss (Note 14) ...Less cost of common stock...

  • Page 18
    ... supported various manufacturing and research initiatives and related infrastructure. In 2004, the company expects nearterm capital expenditures to increase from 2003 levels to prepare for the growth of our diabetes care products, future products in development, and expanded research and development...

  • Page 19
    ...based on income from continuing operations divided by average shareholders' equity) Return on shareholders' equity declined in 2003, to 28.4 percent. This decline is primarily attributable to significant investments in sales and marketing activities in support of our existing key growth products and...

  • Page 20
    ...fied supplemental pension funding requirements, and deferred compensation liabilities. (4) This category comprises primarily cash to be used in the AME acquisition and loan funding requirements to our collaboration partners. The acquisition of AME requires us to pay 20 percent of the purchase price...

  • Page 21
    ...change in the insurance recoveries estimate would lead to an approximate $4 million effect on our income before income taxes. Pension and Retiree Medical Plan Assumptions Pension benefit costs include assumptions for the discount rate, retirement age, and the expected return on plan assets. Retiree...

  • Page 22
    ... of operations, liquidity, and financial position. In October 2002, we were notified that Barr Laboratories, Inc. (Barr), had submitted an ANDA to the U.S. FDA seeking permission to market a generic version of Evista several years prior to the expiration of our U.S. patents covering the product...

  • Page 23
    ..., the Evista patent litigation, and our marketing and promotional practices, the resolution of all such matters will not have a material adverse effect on our consolidated financial position or liquidity but could possibly be material to the consolidated results of operations in any one accounting...

  • Page 24
    ... December 31 2003 2002 2001 Cash Flows From Operating Activities Net income ...Adjustments To Reconcile Net Income to Cash Flows From Operating Activities Depreciation and amortization ...Change in deferred taxes ...Acquired in-process research and development, net of tax ...Asset impairments...

  • Page 25
    ... STATEMENTS OF COMPREHENSIVE INCOME Eli Lilly and Company and Subsidiaries (Dollars in millions) Year Ended December 31 2003 2002 2001 Net income ...Other comprehensive income (loss) Foreign currency translation gains (losses) ...Net unrealized gains (losses) on securities...Minimum pension...

  • Page 26
    ... based on the location of the customer. The largest category of products is the neurosciences group, which includes Zyprexa, Prozac, Strattera, and Permax®. Endocrinology products consist primarily of Humulin, Humalog, Actos, Evista, Forteo, and Humatrope. Oncology products consist primarily of...

  • Page 27
    ...Third Second First Net sales ...Cost of sales ...Operating expenses ...Acquired in-process research and development ...Other-net...Income before income taxes...Net income ...Earnings per share-basic ...Earnings per share-diluted...Dividends paid per share...Common stock closing prices High...Low...

  • Page 28
    ...) Eli Lilly and Company and Subsidiaries (Dollars in millions, except per-share data) 2003 2002 2001 2000 1999 Operations Net sales ...$12,582.5 Research and development ...2,350.2 Other costs and expenses...6,970.6 Income from continuing operations before taxes . . 3,261.7 Income taxes...

  • Page 29
    ...the weighted-average number of outstanding common shares and the effect of all potentially dilutive common shares (primarily unexercised stock options). Cash equivalents: We consider all highly liquid investments, generally with a maturity of three months or less, to be cash equivalents. The cost of...

  • Page 30
    ... in other current liabilities. Revenue from copromotion services (primarily Actos) is based upon net sales reported by our copromotion partner and, if applicable, the number of sales calls we perform. We immediately recognize the full amount of milestone payments due us upon the achievement 28

  • Page 31
    ... per share if we had applied the fair value recognition provisions of SFAS 123 to stock-based employee compensation. 2003 2002 2001 FI N A N C I A L S Net income, as reported ...Add: Compensation expense for stock-based performance awards included in reported net income, net of related tax effects...

  • Page 32
    ... Prescription Drug, Improvement and Modernization Act of 2003 (MMA). The FSP allows companies an opportunity to assess the effect of MMA on their retirement-related benefit costs and obligations and reï¬,ect the effects in the 2003 financial statements, pursuant to SFAS 106, Employer's Accounting...

  • Page 33
    ...repayable at the end of the research agreement term in cash or Isis stock, at Isis's option, using a conversion price of $40 per share. In addition, we committed to loan Isis $21.2 million for the building of a manufacturing suite for Affinitak. On March 17, 2003, we announced, along with Isis, the...

  • Page 34
    ... the first quarter related to this relationship totaled $186.8 million and have been included in the asset impairments, restructuring, and other special charges category in our consolidated statement of income. As a result of a strategic review of our global manufacturing operations, we recognized...

  • Page 35
    ... losses (net of tax) on available-for-sale securities increased (decreased) other comprehensive income by $45.4 million, ($45.0) million, and $34.3 million in 2003, 2002, and 2001, respectively. Activity related to our available-for-sale investment portfolio was as follows: 2003 2002 2001 Proceeds...

  • Page 36
    ... grant was designed to retain and motivate employees affected by the compensation changes due to the Prozac patent expiration. Options to purchase approximately 10.0 million shares were granted as part of this program at a price equal to the fair market value on the date of the grant. Approximately...

  • Page 37
    ..., the number of shares ultimately issued for the performance award program is dependent upon the earnings achieved during the vesting period. Pursuant to this plan, approximately 0.4 million shares and 0.8 million shares were issued in 2002 and 2001, respectively. No shares were issued in 2003 and...

  • Page 38
    ...: Common Stock in Treasury Additional Paid-in Capital Retained Earnings Deferred Costs-ESOP Shares (in thousands) Amount Balance at January 1, 2001 ...Net income ...Cash dividends declared per share: $1.15 ...Retirement of treasury shares ...Purchase for treasury ...Issuance of stock under employee...

  • Page 39
    ... used to purchase shares of our common stock on the open market. Shares of common stock held by the ESOP will be allocated to participating employees annually through 2017 as part of our savings plan contribution. The fair value of shares allocated each period is recognized as compensation expense...

  • Page 40
    ... as follows: 2003 2002 Deferred tax assets Sale of intangibles...Other carryforwards ...Inventory ...Compensation and benefits ...Tax credit carryforwards and carrybacks ...Asset purchases ...Other...Valuation allowances ...Total deferred tax assets...Deferred tax liabilities Prepaid employee bene...

  • Page 41
    ... of the effective income tax rate applicable to income before income taxes: 2003 2002 2001 United States federal statutory tax rate ...Add (deduct) International operations, including Puerto Rico ...General business credits ...Sundry ...Effective income tax rate ...Note 12: Retirement Benefits...

  • Page 42
    ... the related cost over the service lives of employees. Expenses associated with these benefit plans in 2003, 2002, and 2001 were not significant. Our plan assets in our U.S. defined benefit pension and retiree health plans comprise approximately 86 percent of our worldwide benefit plan assets...

  • Page 43
    ... of operations, liquidity, and financial position. In October 2002, we were notified that Barr Laboratories, Inc. (Barr), had submitted an ANDA to the U.S. FDA seeking permission to market a generic version of Evista several years prior to the expiration of our U.S. patents covering the product...

  • Page 44
    ...fication adjustments of $37.4 million, $11.3 million, and $12.3 million, net of tax, in 2003, 2002, and 2001, respectively, for net realized gains on sales of securities included in net income. The effective portion of cash ï¬,ow hedges is net of reclassification adjustments of $27.2 million in...

  • Page 45
    ... of internal accounting controls. The general auditor reports directly to the audit committee of the board of directors. In addition to the system of internal accounting controls, we maintain a code of conduct (known as The Red Book ) that applies to all employees worldwide, requiring proper...

  • Page 46
    REPORT OF INDEPENDENT AUDITORS Board of Directors and Shareholders Eli Lilly and Company We have audited the accompanying consolidated balance sheets of Eli Lilly and Company and subsidiaries as of December 31, 2003 and 2002, and the related consolidated statements of income, cash ï¬,ows, and ...

  • Page 47
    ... attend our annual meeting of shareholders on Monday, April 19, 2004, at the Lilly Center Auditorium, Lilly Corporate Center, Indianapolis, Indiana, at 11:00 a.m. EST (Indianapolis time). If you are unable to attend in person, please join us via live webcast on the company's website at www.lilly.com...

  • Page 48
    ...as principal independent auditors for the year 2004 • to approve the Eli Lilly and Company Bonus Plan • to consider and vote on a shareholder proposal requesting that the company's board of directors adopt a compensation program limiting the compensation of senior executives to specified levels...

  • Page 49
    ... annual meeting? Five items: • election of directors • ratification of the appointment of principal independent auditors • approval of the Eli Lilly and Company Bonus Plan • a shareholder proposal requesting that we adopt a compensation program limiting the compensation of senior executives...

  • Page 50
    ...of all owners. If you return your signed proxy but do not indicate your voting preferences, we will vote on your behalf for the election of the four nominees for director listed below, for the ratification of the appointment of the independent auditors, for the Eli Lilly and Company Bonus Plan, and...

  • Page 51
    ... the directions of the participants to whose accounts the shares are credited) • shares held in the plan that are not yet credited to individual participants' accounts. All participants are named fiduciaries under the terms of the savings plan and under the Employee Retirement Income Security Act...

  • Page 52
    ... The board has a process by which shareholders can send communications to the board. You can send written communications to one or more members of the board, addressed to Presiding Director, Board of Directors Eli Lilly and Company c/o Corporate Secretary Lilly Corporate Center Indianapolis, Indiana...

  • Page 53
    ... receive only one copy of our annual report and proxy statement unless one or more of these shareholders notifies us that they wish to continue receiving individual copies. This procedure saves printing and postage costs by reducing duplicative mailings. Shareholders who participate in householding...

  • Page 54
    ... 71 Dr. Beering served as president of Purdue University from 1983 until his retirement in 2000 when he became president emeritus of the university. He served as dean of the Indiana University School of Medicine and director of the Indiana University Medical Center from 1974 until 1983. Dr. Beering...

  • Page 55
    ... Seifert held management positions at Procter & Gamble, Beatrice Foods, and Fort Howard Paper Company. She is a director of Theda Care Health Group, the U.S. Fund for UNICEF, and the Fox Cities Performing Arts Center. Ms. Seifert has announced her retirement from Kimberly-Clark, effective June, 2004...

  • Page 56
    ...served as president, Private Client Services, and managing director of Marsh, Inc., a subsidiary of MMC from 1999 until her retirement in 2003. Prior to joining Marsh, she was senior managing director and head of international private banking at Bankers Trust Company; chairman and chief executive of...

  • Page 57
    ...The New York Times Company as well as several private companies. She serves on the boards of The New York & Presbyterian Hospital, Lincoln Center Theater, Families and Work Institute, and Citymeals-on-Wheels. Sidney Taurel Chairman of the Board, President, and Chief Executive Officer Director since...

  • Page 58
    ...director compensation, or whose immediate family member receives more than $100,000 per year in direct compensation from Lilly other than for service as a non-executive employee. • a director who is employed (or whose immediate family member is employed as an executive officer) by another company...

  • Page 59
    ... with senior management, devotes an extended meeting to discussing and providing direction for the corporate strategic plan. Throughout the year, significant corporate strategy decisions are brought to the board for approval. Code of Ethics The board has approved the company's code of ethics, which...

  • Page 60
    • The Red Book, a comprehensive code of ethical and legal business conduct applicable to all employees worldwide and to our board of directors • the company's Code of Ethical Conduct for Lilly Financial Management, a supplemental code for our chief executive officer and all members of fi...

  • Page 61
    ... (except the audit, compensation, and directors and corporate governance committees) as appropriate. The chair of the committee determines the frequency, length, and agenda of committee meetings. All six committee charters are available online at http://investor.lilly.com/board-committees.cfm. PROX...

  • Page 62
    ... Plan, management stock plans, and the company's cash bonus plan The compensation committee report is shown on pages 66-68 of this proxy statement. Public Policy and Compliance Committee • reviews policies and practices and monitors compliance in areas of legal and social responsibility...

  • Page 63
    .... Board Audit Compensation Directors and Corporate Governance Finance Public Policy and Compliance Science and Technology Dr. Beering Sir Winfried Bischoff Dr. Feldstein Mr. Fisher Dr. Gilman Mr. Golden Ms. Horn Ms. Marram Dr. Prendergast Sir John Rose Ms. Seifert Mr. Taurel Number of 2003 Meetings...

  • Page 64
    ... 2003 for the participating directors was $201,055.76. • Deferred Stock Account. This account allows the director, in effect, to invest his or her deferred cash compensation in Lilly stock. In addition, the annual award of 700 shares to each director noted above is credited to this account. Funds...

  • Page 65
    ... and senior executives, particularly those with experience in operations, finance/banking, and marketing/sales • international business • medicine and science • government and public policy • information technology. The board delegates the screening process to the directors and corporate...

  • Page 66
    ... in the rules of the Securities and Exchange Commission. Audit Committee Report The audit committee reviews the company's financial reporting process on behalf of the board. Management has the primary responsibility for the financial statements and the reporting process, including the systems of...

  • Page 67
    ... control assessments and accounting consultations Tax Fees • 2003: primarily related to tax planning and various compliance services • 2002: tax assistance provided to company employees living outside their country of permanent residence and assistance with tax planning All Other Fees Total...

  • Page 68
    .... We consider various measures of company and industry performance, including sales, earnings per share, total market value, total shareholder return, and economic value added (EVA®). These data assist us in exercising judgment in establishing total compensation ranges. We do not assign these...

  • Page 69
    ... more new products, as well as a new indication and a new formulation for Zyprexa -making significant progress in addressing manufacturing quality issues in its Indianapolis facilities, thus clearing a key regulatory hurdle for future product approvals. Long-Term Incentives. We normally employ two...

  • Page 70
    ...establishing Mr. Taurel's compensation for 2003, we applied the principles outlined above in the same manner as they were applied to the other executives. We compared company performance with that of the peer group companies, including EPS growth, EVA, and total shareholder return. We did not assign...

  • Page 71
    ... target as described in the Compensation Committee report. (3) Of Mr. Taurel's total, $60,725 represents personal use of the company aircraft. Mr. Taurel is required to travel on the company aircraft for security reasons. (4) There was no payment in February 2003 under the performance award program...

  • Page 72
    ... Year (1) Individual Grants Number of Securities Underlying Options Granted % of Total Option Shares Granted to Employees in Fiscal Year Exercise or Base Price Per Share (2) Grant Date Present Value (3) Name Expiration Date Sidney Taurel Gerhard N. Mayr Charles E. Golden John C. Lechleiter, Ph...

  • Page 73
    ... more than 40 calendar quarters and related income taxes, if any, attributable to such benefit. Mr. Golden, who is credited with 34 years, received additional service credit when be began his employment in 1996. His retirement benefits will include standard retiree medical benefits. His current...

  • Page 74
    ...a person invested $100 each in Lilly stock, the S&P 500 Stock Index, and the peer group's common stock. The graph measures total shareholder return, which takes into account both stock price and dividends. It assumes that dividends paid by a company are reinvested in that company's stock. Comparison...

  • Page 75
    ... of the outstanding common stock of the company. All directors and executive officers as a group own 0.135 percent of the outstanding common stock of the company. (2) The shares shown for Mr. Golden include 971 shares credited to his account under the Savings Plan. (3) The shares shown for Mr...

  • Page 76
    ... information regarding this ownership: Name and Address Number of Shares Beneficially Owned Percent of Class Lilly Endowment, Inc. 2801 North Meridian Street Indianapolis, Indiana 46208 Capital Research and Management Company 333 South Hope Street Los Angeles, California 90071 154,120,804 (as...

  • Page 77
    ... of directors has approved a new annual cash bonus plan, the Eli Lilly and Company Bonus Plan, effective January 1, 2004. It replaces both the prior management and executive bonus plan (the Eli Lilly and Company EVA Bonus Plan) and the company's principal bonus program for nonmanagement employees...

  • Page 78
    ... measures: growth in net income or earnings per share; growth in sales; return on assets; return on equity; total shareholder return; economic value added (EVA); market value added (MVA); or any of the foregoing before the effect of acquisitions, divestitures, accounting changes, restructurings...

  • Page 79
    ... shares in the Lilly GlobalShares Stock Plan, which permits the company to grant stock options to nonmanagement employees worldwide. The plan is administered by the senior vice president responsible for human resources. The stock options are nonqualified for U.S. tax purposes. The option price...

  • Page 80
    ... of the Company, its shareholders, and other important corporate constituents. CEO pay has been described as a "wasteland that has not been reformed." (Institutional Shareholder Services senior vice-president, Wall Street Journal, "Executive Pay Keeps Rising, Despite Outcry," October 3, 2003). As of...

  • Page 81
    ...and marketing policies from the perspective of access to and affordability of our products. • Our website currently contains a report on the company's access-related programs. • In December 2003, the company published the 2002 Corporate Responsibility Report. This report will be updated annually...

  • Page 82
    ...enormous costs and risks related to discovering and developing new medicines. The company plans to expand its reporting on these activities in the 2003 Corporate Responsibility Report, which will be published in 2004. In addition to the actions taken on access to medicines, it will address standards...

  • Page 83
    ... and Exchange Commission rules, our directors and executive officers are required to file with the Securities and Exchange Commission reports of holdings and changes in beneficial ownership of company stock. We have reviewed copies of reports provided for the company, as well as other records and...

  • Page 84
    ...which management has established; • The performance of internal and external audit functions; and • The company's compliance with legal and regulatory requirements. Composition The committee shall consist of no fewer than three directors. All committee members must meet applicable New York Stock...

  • Page 85
    ...company's accounting principles as required by SAS No. 61. 7. Review and discuss with management Lilly's earnings press releases, including the use of "pro forma" nonGAAP information, as well as financial information and earnings guidance provided to analysts and rating agencies. 8. Provide an open...

  • Page 86
    ... determine. APPENDIX B Eli Lilly and Company Bonus Plan (effective January 1, 2004) Section 1. Purpose The purpose of The Eli Lilly and Company Bonus Plan is to encourage and promote eligible employees to create and deliver innovative pharmaceutical-based health care solutions that enable people to...

  • Page 87
    ... of the Internal Revenue Code of 1986, as amended, or whose basic compensation for services on behalf of the Company is not paid directly by the Company; (4) a person who is classified as a "Fixed Duration Employee", as that term is used by Lilly; (5) a person who is classified as a special status...

  • Page 88
    ...based on performance measures as described in Section 5.2. 2.17 Plan means The Eli Lilly and Company Bonus Plan as set forth herein and as hereafter modified or amended from time to time. The Plan is an incentive compensation program and is not subject to the Employee Retirement Income Security Act...

  • Page 89
    ...of the Internal Revenue Code of 1986, as amended. 2.23 Service means the aggregate time of employment of an Eligible Employee by the Company. Section 3. Administration 3.1 Committee. The Plan will be administered by the Compensation Committee of the Board of Directors of Eli Lilly and Company or, if...

  • Page 90
    ...calculating Company Bonus amounts. These performance measures may include Sales Growth, EPS Growth, growth in net income, return on assets, return on equity, total shareholder return, EVA, MVA or any of the foregoing before the effect of acquisitions, divestitures, accounting changes, restructurings...

  • Page 91
    ...equal the product of the Company Performance Bonus Multiple and the Participant's Bonus Target and the Participant's Earnings. c. Adjustment for Performance Multiplier, if Applicable. Notwithstanding anything herein to the contrary, all eligible management employees (except Lilly Executive Officers...

  • Page 92
    ... Maximum. In the case of Lilly Executive Officers, all determinations necessary for computing a Company Bonus for the Applicable Year, including establishment of all components of EPS, EPS Growth, Sales, Sales Growth, Company Performance Bonus Multiple and Bonus Target percentages, shall be made by...

  • Page 93
    ... Committee pursuant to the provisions of the Plan will be in writing and directed to Secretary, Eli Lilly and Company, Lilly Corporate Center, Indianapolis, IN 46285. Section 9. Amendment, Suspension, Or Termination The Board of Directors of the Company will have the right to amend, modify, suspend...

  • Page 94
    ... President, Neuroscience Products Vice President, Product Research Development Vice President, Sales and Marketing-Primary Care/Neuroscience Establishes corporate strategy and policy and ensures compliance Implements corporate strategies and ensures corporate performance, identifies issues...

  • Page 95
    ... online. This reduces paper mailed to the shareholder's home and saves the company printing and mailing costs. To enroll, go to http://proxyonline.lilly.com and follow the directions provided. Policy on the issue of access to medicines Wells Fargo Shareowner Services Mailing address: Shareowner...

  • Page 96
    ...® Coban® Cymbalta™ Evitsa® Forteo® Gemzar® Humalog® Humatrope® Humulin® Permax® Prozac® Prozac® Weekly™ ReoPro® Rumensin® Sarafem® Strattera® Symbyax™ Tylan® Vancocin® Xigris® Zyprexa® (LY900003 and formerly ISIS 3521, ISIS Pharmaceuticals), Lilly (pioglitazone hydrochloride...

  • Page 97
    ... Eli Lilly and Company 2004 Annual Meeting of Shareholders Monday, April 19, 2004 11 a.m. EST (Indianapolis time) Lilly Center Auditorium Lilly Corporate Center Indianapolis, Indiana 46285 The top portion of this page will be required to admit you to the meeting. Please write your name and address...

  • Page 98
    ...Detach here Detach here Eli Lilly and Company Annual Meeting of Shareholders April 19, 2004 Complimentary Parking Lilly Corporate Center Please place this identifier on the dashboard of your car as you enter Lilly Corporate Center so it can be clearly seen by security and parking personnel. 96

  • Page 99
    © 2004 Eli Lilly and Company 435804

  • Page 100
    Eli Lilly and Company Lilly Corporate Center Indianapolis, Indiana 46285 USA www.lilly.com