Summary
Eli Lilly & Co. filed an amendment to its 2007 10-K on October 20, 2008, primarily to restate its consolidated balance sheets and selected financial data for certain prior periods. The restatement was necessitated by an adjustment to the company's reserve for future product returns, specifically related to the methodology for calculating this reserve in accordance with SFAS 48. The company states that this restatement had no effect on its income, cash flows, or liquidity, and the effects on its financial position were immaterial. In addition, certain disclosures regarding deferred tax assets, valuation allowances, and uncertain tax positions were modified, also without impacting the company's financial statements. The filing also provides updates on legal and regulatory matters, including ongoing patent litigation and investigations into marketing and promotional practices, particularly concerning the drug Zyprexa.
Financial Highlights
22 data pointsKey Highlights
- 1Restatement of prior period financial statements due to an adjustment in the reserve for future product returns.
- 2The restatement had no impact on income, cash flows, or liquidity, and the effects on financial position were deemed immaterial.
- 3Modifications were made to disclosures concerning deferred tax assets, valuation allowances, and uncertain tax positions.
- 4The company is involved in significant patent litigation, particularly challenging generic manufacturers of its key products like Evista, Gemzar, and Strattera.
- 5Eli Lilly is also facing investigations related to its marketing and promotional practices, particularly concerning Zyprexa, Prozac, and Evista.
- 6Substantial charges have been recorded for Zyprexa product liability litigation, with ongoing legal battles and settlements impacting financial results.
- 7The company reported strong sales growth in 2007, driven by key products such as Cymbalta and the acquisition of ICOS (maker of Cialis).