Eli Lilly 2005 Annual Report Download - page 17

FI NA NCI A L S
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Zyprexa, our top-selling product, is a treatment
for schizophrenia, bipolar mania, and bipolar mainte-
nance. Zyprexa sales in the U.S. decreased 16 percent
in 2005, resulting from a decline in underlying demand
due to continuing competitive pressures. Sales outside
the U.S. in 2005 increased 9 percent, driven by volume
growth in a number of major markets and the favor-
able impact of exchange rates. Excluding the impact
of exchange rates, sales of Zyprexa outside the U.S.
increased by 6 percent. In September 2005, the National
Institute of Mental Health released the results of its
Clinical Antipsychotic Trial of Intervention Effectiveness
(CATIE) study, which showed that Zyprexa was statisti-
cally superior on time to discontinuation in patients
with schizophrenia as compared to other medications.
Patients taking Zyprexa also experienced significantly
fewer hospitalizations for schizophrenia than patients
taking other medications. In addition, the study noted
that Zyprexa patients experienced greater weight gain
and increases in measures of glucose and lipid metabo-
lism than patients using other antipsychotics.
Diabetes care products, composed primarily of
Humalog®, our insulin analog; Humulin®, a biosynthetic
human insulin; Actos®, an oral agent for the treatment of
type 2 diabetes; and recently-launched Byetta, the first in
a new class of medicines known as incretin mimetics for
type 2 diabetes that we market with Amylin Pharmaceu-
ticals, had aggregate worldwide revenues of $2.80 billion
in 2005, an increase of 7 percent. Diabetes care revenues
in the U.S. increased 7 percent, to $1.59 billion, primar-
ily driven by higher prices, offset partially by a decline in
underlying demand due to continued competitive pressures
in the insulins market and reductions in wholesaler inven-
tory levels of insulins. Diabetes care revenues outside the
U.S. increased 8 percent, to $1.20 billion. Humalog sales
increased 8 percent in the U.S. and 10 percent outside the
U.S. Humulin sales in the U.S. decreased 3 percent, while
Humulin sales outside the U.S. increased 3 percent. Actos
revenues, the majority of which represent service revenues
from a copromotion agreement in the U.S. with Takeda
Pharmaceuticals North America (Takeda), increased 9
percent in 2005. Actos is manufactured by Takeda Chemi-
cal Industries, Ltd., and sold in the U.S. by Takeda. Our U.S.
marketing rights with respect to Actos expire in September
2006; however, we will continue receiving royalties from
Takeda. As a result, our revenues from Actos will decline
each year from 2006 through 2009. Our arrangement in
the U.S. ceases after October 2009. Sales of Byetta were
$74.6 million following its June 2005 launch. We report as
revenue our 50 percent share of Byetta’s gross margin and
our sales of Byetta pen delivery devices to Amylin. This
revenue totaled $39.6 million in 2005.
Sales of Gemzar, a product approved to fight various
cancers, increased 4 percent in the U.S. Sales growth in
the U.S. in 2005 was negatively affected by reductions in
wholesaler inventory levels as a result of our restructured
The following table summarizes our net sales activity in 2005 compared with 2004:
Year Ended Year Ended Percent
December 31, 2005 December 31, 2004 Change
Product U.S.1 Outside U.S. Total Total from 2004
(Dollars in millions)
Zyprexa . . . . . . . . . . . . . . . . . . . . . . $2,034.9 $ 2,167.4 $ 4,202.3 $ 4,419.8 (5)
Gemzar . . . . . . . . . . . . . . . . . . . . . . 586.1 748.4 1,334.5 1,214.4 10
Humalog . . . . . . . . . . . . . . . . . . . . . 739.6 458.1 1,197.7 1,101.6 9
Evista . . . . . . . . . . . . . . . . . . . . . . . . 652.9 383.2 1,036.1 1,012.7 2
Humulin. . . . . . . . . . . . . . . . . . . . . . 410.7 594.0 1,004.7 997.7 1
Animal health products . . . . . . . . . 370.3 493.4 863.7 798.7 8
Cymbalta . . . . . . . . . . . . . . . . . . . . . 636.2 43.5 679.7 93.9 NM
Strattera . . . . . . . . . . . . . . . . . . . . . 498.7 53.4 552.1 666.7 (17)
Actos . . . . . . . . . . . . . . . . . . . . . . . . 355.7 137.3 493.0 452.9 9
Alimta . . . . . . . . . . . . . . . . . . . . . . . 296.3 166.9 463.2 142.6 NM
Fluoxetine products . . . . . . . . . . . . 249.1 204.3 453.4 559.0 (19)
Anti-infectives. . . . . . . . . . . . . . . . . 133.3 310.6 443.9 478.0 (7)
Humatrope . . . . . . . . . . . . . . . . . . . 184.5 229.9 414.4 430.3 (4)
Forteo . . . . . . . . . . . . . . . . . . . . . . . 264.7 124.6 389.3 238.6 63
ReoPro® . . . . . . . . . . . . . . . . . . . . . 119.8 176.9 296.7 362.8 (18)
Xigris® . . . . . . . . . . . . . . . . . . . . . . . 118.9 95.7 214.6 201.8 6
Cialis2 . . . . . . . . . . . . . . . . . . . . . . . 2.3 167.6 169.9 130.6 30
Symbyax . . . . . . . . . . . . . . . . . . . . . 52.6 1.3 53.9 70.2 (23)
Other pharmaceutical products . . 91.5 290.7 382.2 485.6 (21)
Total net sales. . . . . . . . . . . . . . . $7,798.1 $6,847.2 $14,645.3 $13,857.9 6
NM—Not meaningful
1 U.S. sales include sales in Puerto Rico.
2 Cialis had worldwide 2005 sales of $746.6 million, representing an increase of 35 percent compared with 2004. The sales shown in the table above
represent results only in the territories in which we market Cialis exclusively. The remaining sales relate to the joint-venture territories of Lilly ICOS LLC
(North America, excluding Puerto Rico, and Europe). Our share of the joint-venture territory sales, net of expenses, is reported in net other income in our
consolidated income statement.