Summary
Eli Lilly & Company (LLY) has filed an 8-K to announce a change in how it will present its non-GAAP financial measures, effective with its first quarter 2022 earnings release. The company will no longer include adjustments for upfront charges and development milestones related to acquired in-process research and development (IPR&D) projects in its non-GAAP presentations. This change is in response to updated guidance from the SEC. While the company has not finalized its Q1 2022 results, it anticipates approximately $165 million in IPR&D charges for the quarter, which would have an estimated impact of $0.15 per share under the previous non-GAAP reporting method. Investors should note that this information is being furnished and not deemed filed, meaning it does not carry the same regulatory implications as a filed document. The company will provide updated historical financial information reflecting this new presentation on its investor website.
Key Highlights
- 1Change in Non-GAAP Financial Measure Presentation: LLY will exclude adjustments for acquired IPR&D charges from its non-GAAP financial measures starting Q1 2022.
- 2SEC Guidance Compliance: The change is a direct response to guidance provided by the U.S. Securities and Exchange Commission.
- 3Estimated Q1 2022 IPR&D Charges: The company estimates approximately $165 million in IPR&D charges for the quarter ended March 31, 2022.
- 4Estimated EPS Impact: These IPR&D charges are estimated to have an impact of approximately $0.15 per share on Q1 2022 earnings.
- 5Unaudited Nature of Figures: The reported IPR&D charge figures are estimates and have not been finalized; actual results may differ.
- 6Information Furnished, Not Filed: The content of this 8-K (Item 2.02) is furnished, not filed, and does not subject the company to Section 18 of the Exchange Act.
- 7Website for Updated Information: LLY will make unaudited historical financial information reflecting the updated non-GAAP presentation available on its website.