Eli Lilly 2006 Annual Report Download - page 14

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FINANCIALS
12
certain benefi ciaries bearing more of the cost. Several
states also are attempting to extend discounted Medicaid
prices to non-Medicaid patients. As a result, we expect
pressures on pharmaceutical pricing to continue.
As it relates to the Medicare program, Lilly has
implemented the LillyMedicareAnswers program. Lilly-
MedicareAnswers is a new patient assistance program
that provides certain eligible Medicare Part D enrolled
patients access to a one month’s-supply of select medi-
cations for a $25 administrative fee per prescription.
Medications available via the program include Zyprexa,
Forteo®, and Humatrope®.
International operations also are generally subject
to extensive price and market regulations, and there
are many proposals for additional cost-containment
measures, including proposals that would directly or
indirectly impose additional price controls or reduce the
value of our intellectual property protection.
OPERATING RESULTS—2006
Sales
Our worldwide sales for 2006 increased 7 percent,
to $15.69 billion, driven primarily by sales growth of
Cymbalta, Forteo, Byetta, Zyprexa, and Alimta®. World-
wide sales volume increased 3 percent and selling
prices increased sales by 4 percent. Foreign exchange
rates did not impact our overall sales growth. Sales in
the U.S. increased 10 percent, to $8.60 billion, driven
primarily by increased sales of Cymbalta, diabetes
care products, Forteo, and Zyprexa. U.S. growth com-
parisons benefi ted from an estimated $170 million of
wholesaler destocking that had occurred in 2005 as a
result of restructuring our arrangements with our U.S.
wholesalers in the fi rst quarter of 2005. Additionally,
we experienced a one-time sales benefi t resulting from
a shift of certain low-income patients from Medicaid to
Medicare and increased access to medical coverage by
certain patients previously covered under our LillyAn-
swers program following the implementation of MMA
in 2006. This contributed part of the increases in U.S.
net effective sales prices of 9 percent. Sales outside
the U.S. increased 4 percent, to $7.09 billion, driven by
growth of Cymbalta, Alimta, and Zyprexa.
Zyprexa, our top-selling product, is a treatment
for schizophrenia, bipolar mania, and bipolar mainte-
nance. Zyprexa sales in the U.S. increased 4 percent
in 2006, driven by higher prices, offset in part by lower
The following table summarizes our net sales activity in 2006 compared with 2005:
Year Ended Year Ended Percent
December 31, 2006 December 31, 2005 Change
Product U.S.1 Outside U.S. Total Total from 2005
(Dollars in millions)
Zyprexa . . . . . . . . . . . . . . . . . . . . . . $ 2,106.2 $ 2,257.4 $ 4,363.6 $ 4,202.3 4
Gemzar . . . . . . . . . . . . . . . . . . . . . . 609.8 798.3 1,408.1 1,334.5 6
Cymbalta . . . . . . . . . . . . . . . . . . . . . 1,158.7 157.7 1,316.4 679.7 94
Humalog® . . . . . . . . . . . . . . . . . . . . 811.0 488.5 1,299.5 1,197.7 9
Evista . . . . . . . . . . . . . . . . . . . . . . . . 664.0 381.3 1,045.3 1,036.1 1
Humulin®. . . . . . . . . . . . . . . . . . . . . 367.9 557.4 925.3 1,004.7 (8)
Animal health products . . . . . . . . . 405.9 469.6 875.5 863.7 1
Alimta . . . . . . . . . . . . . . . . . . . . . . . 350.1 261.7 611.8 463.2 32
Forteo . . . . . . . . . . . . . . . . . . . . . . . 416.2 178.1 594.3 389.3 53
Strattera® . . . . . . . . . . . . . . . . . . . . 509.2 69.8 579.0 552.1 5
Actos® . . . . . . . . . . . . . . . . . . . . . . . 279.1 169.4 448.5 493.0 (9)
Humatrope . . . . . . . . . . . . . . . . . . . 202.3 213.3 415.6 414.4 0
Fluoxetine products . . . . . . . . . . . . 152.8 162.3 315.1 453.4 (31)
ReoPro®. . . . . . . . . . . . . . . . . . . . . . 110.4 170.0 280.4 296.7 (5)
Anti-infectives. . . . . . . . . . . . . . . . . 25.1 249.5 274.6 443.9 (38)
Byetta. . . . . . . . . . . . . . . . . . . . . . . . 219.0 — 219.0 39.6 NM
Cialis2 . . . . . . . . . . . . . . . . . . . . . . . 3.7 212.1 215.8 169.9 27
Xigris® . . . . . . . . . . . . . . . . . . . . . . . 103.4 88.8 192.2 214.6 (10)
Other pharmaceutical products . . 104.4 206.6 311.0 396.5 (22)
Total net sales. . . . . . . . . . . . . . . $8,599.2 $7,091.8 $15,691.0 $14,645.3 7
NM—Not meaningful
1 U.S. sales include sales in Puerto Rico.
2 Cialis had worldwide 2006 sales of $971.0 million, representing an increase of 30 percent compared with 2005. 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 and income taxes, is reported in other income—net in our
consolidated statements of income.