What was the primary driver for the revenue increase in the first quarter of 2009?

The primary drivers for the revenue increase were the collective growth of key products like Cymbalta, Alimta, and Humalog, and the inclusion of revenue from the ImClone acquisition, which was completed in November 2008.

What significant legal or regulatory events impacted the company's financial results in this quarter?

The most significant event was the settlement of the Zyprexa-related federal and state investigations, which resulted in a payment of $1.06 billion in the first quarter of 2009. A charge of $1.42 billion had been recorded in the third quarter of 2008 for this matter.

How did the ImClone acquisition affect the company's expenses?

The ImClone acquisition contributed to an increase in Research and Development expenses due to integration and pipeline activities, and also impacted Marketing, Selling, and Administrative expenses. The acquisition accounted for approximately $6.5 billion in purchase price, including significant amounts allocated to goodwill and in-process R&D.

What is the outlook for the full year 2009, and what are the key risks?

Eli Lilly reaffirmed its full-year 2009 earnings per share guidance of $4.00 to $4.25, expecting mid-single digit sales growth. Key risks include ongoing patent litigation for major products like Cymbalta and Zyprexa, potential generic competition, regulatory changes, global macroeconomic conditions, and pricing pressures from government healthcare programs.

LLY 10-Q Quarterly Report Q1 FY2009 — Revenue, Net Income, EPS

Summary

Eli Lilly and Company reported a 5% increase in total revenue to $5.05 billion for the first quarter of 2009, compared to the same period in 2008. This growth was primarily driven by strong performance in key products like Cymbalta and Alimta, along with the inclusion of revenue from the recent acquisition of ImClone Systems. Net income also saw a significant rise to $1.31 billion, translating to diluted earnings per share of $1.20, up from $0.97 in the prior year. The company highlighted continued investment in research and development, alongside progress in its late-stage pipeline, including positive regulatory feedback for prasugrel and new indications for Symbyax and Zyprexa. However, the period was also marked by substantial legal settlements, notably the $1.06 billion payment related to the EDPA investigation into Zyprexa's marketing practices, which impacted operating cash flow. Despite these legal expenses, Lilly reaffirmed its full-year 2009 earnings per share guidance of $4.00 to $4.25, indicating confidence in its ongoing operational performance and product portfolio.

Financial Highlights

20 data points

Beta

Revenue

$5.05B

0.8% Gross Margin

Net Income

$1.31B

0.3% Net Margin

Cash & Equivalents

$3.31B

Free Cash Flow

$87.90M

Financial Statements

Beta

Revenue	$5.05B
Cost of Revenue	$816.40M
Gross Profit	$4.23B
R&D Expenses	$947.30M
SG&A Expenses	$1.53B
Net Income	$1.31B

Key Highlights

1Total revenue increased by 5% to $5.05 billion, driven by key product growth (Cymbalta, Alimta, Humulog) and the ImClone acquisition.
2Net income rose to $1.31 billion, resulting in diluted EPS of $1.20, an increase from $0.97 in Q1 2008.
3Significant legal settlement payment of $1.06 billion in Q1 2009 related to the EDPA investigation into Zyprexa's marketing practices.
4Continued investment in R&D, with expenses increasing by 8% to $947.3 million, partly due to the ImClone acquisition.
5Positive late-stage pipeline developments include favorable FDA advisory committee vote for prasugrel and new indications for Symbyax and Zyprexa.
6Cash and cash equivalents decreased to $3.31 billion from $5.50 billion at the end of 2008, impacted by debt repayment, dividends, and legal settlements.
7Company reaffirmed its full-year 2009 EPS guidance of $4.00 to $4.25.

ELI LILLY & Co Quarterly Report for Q1 Ended Mar 31, 2009

Summary

Financial Highlights

Key Highlights

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