8-KEarnings & Results

ELI LILLY & Co 8-K Report, Financial Results (Apr 14, 2022)

Filed April 14, 2022For Securities:LLY

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.

Frequently Asked Questions

Eli Lilly is changing how it presents its non-GAAP financial measures. Starting with the first quarter of 2022, they will no longer adjust for upfront charges and development milestones related to acquired in-process research and development (IPR&D) projects in these non-GAAP presentations. This aligns with new guidance from the SEC.

For the first quarter of 2022, the company anticipates approximately $165 million in IPR&D charges. Under the previous non-GAAP reporting method, this would have reduced EPS by an estimated $0.15. With the new presentation, this charge will not be excluded from the non-GAAP EPS calculation.

No, the $165 million charge is an estimate for the quarter ended March 31, 2022, and it has not yet been finalized. The actual amounts could differ once the company completes its financial reporting for the period.

Eli Lilly intends to make unaudited historical financial information reflecting the updated presentation of its non-GAAP financial measures available on the 'Investors' page of the company’s website in conjunction with its Q1 2022 earnings release.