Lilly reports 3Q results

Eli Lilly and Company has announced financial results for the third quarter of 2008.

Due to significant strategic actions taken by the company in 2008, financial results are presented on both a reported basis and a pro forma non- generally accepted accounting principles (non-GAAP) basis.

Reported results were prepared in accordance with generally accepted accounting principles (GAAP) and include all sales and expenses recognized by the company during the period.

Pro forma non-GAAP results exclude significant items described in the reconciliation tables and also assume the ICOS acquisition was completed January 1, 2007.

The pro forma non-GAAP results are presented in order to provide additional insights into the underlying trends in the company's business.

Financial guidance is also provided on both a reported and a pro forma non-GAAP basis.

The company’s 3Q highlights are:

* Sales increased 14%, to $5.210 billion.

* Products launched this decade collectively grew 28%, to $1.923 billion, and accounted for 37% of total sales, compared with 33% of total sales in the third quarter of 2007.

* The company recorded charges totaling $1.477 billion related to the pending Zyprexa investigations by the US Attorney for the Eastern District of Pennsylvania, as well as the resolution of a multi-state investigation regarding Zyprexa involving 32 states and the District of Columbia.

* As a result of the Zyprexa charges, the company reported a net loss of $465.6 million and a loss per share of $.43, compared with third-quarter 2007 net income of $926.3 million and earnings per share of $0.85. On a pro forma non-GAAP basis, excluding significant items totaling $1.47 per share, earnings rose 14% to $1.04 per share.