Lilly Reports Fourth-Quarter and Full-Year 2015 Results
$ in millions, except per share data |
Fourth Quarter |
% |
Full Year |
% | ||||||||||||
2015 |
2014 |
Change |
2015 |
2014 |
Change | |||||||||||
Revenue - Reported |
$ |
5,375.6 |
$ |
5,121.3 |
5% |
$ |
19,958.7 |
$ |
19,615.6 |
2% | ||||||
Net Income - Reported |
478.4 |
428.5 |
12% |
2,408.4 |
2,390.5 |
1% | ||||||||||
EPS - Reported |
0.45 |
0.40 |
13% |
2.26 |
2.23 |
1% | ||||||||||
Revenue - non-GAAP |
5,375.6 |
5,399.6 |
(0)% |
19,958.7 |
20,696.7 |
(4)% | ||||||||||
Net Income - non-GAAP |
828.2 |
880.5 |
(6)% |
3,656.3 |
3,257.6 |
12% | ||||||||||
EPS - non-GAAP |
0.78 |
0.82 |
(5)% |
3.43 |
3.03 |
13% |
Certain financial information for 2015 and 2014 is presented on both a reported and a non-GAAP basis. Some numbers in this press release may not add due to rounding. Reported results were prepared in accordance with generally accepted accounting principles (GAAP) and include all revenue and expenses recognized during the period. Non-GAAP measures exclude the items described in the reconciliation tables later in the release. Non-GAAP measures in 2014 include the results of
"Lilly's 2015 results reinforce our confidence in the future with six
Key Events Over the Last Three Months
Commercial
- The company launched Portrazza™ (necitumumab) in the
U.S. , in combination with gemcitabine and cisplatin, as the first biologic for the first-line treatment of patients with metastatic squamous non-small cell lung cancer (NSCLC).
Regulatory
- The
U.S. Food and Drug Administration (FDA) approved Portrazza. - The
FDA approved Basaglar® (insulin glargine injection) 100 units/mL. Basaglar is a long-acting insulin with an identical amino acid sequence to Lantus®, another U-100 insulin glargine. Per the company's settlement agreement with Sanofi, Basaglar will be available in theU.S. starting onDecember 15, 2016 . Basaglar is part of theBoehringer Ingelheim and Lilly Diabetes Alliance . - Following positive opinions from
Europe's Committee for Medicinal Products for Human Use (CHMP), theEuropean Commission has approved:- Cyramza® (ramucirumab) in combination with docetaxel for the treatment of adult patients with locally advanced or metastatic NSCLC with disease progression after platinum-based chemotherapy.
- Cyramza in combination with FOLFIRI for the treatment of adult patients with metastatic colorectal cancer (mCRC) with disease progression on or after prior therapy with bevacizumab, oxaliplatin and a fluoropyrimidine.
- The company and Incyte Corporation announced the submission of a new drug application to the
FDA for the approval of oral once-daily baricitinib for the treatment of moderately-to-severely active rheumatoid arthritis. Baricitinib was also submitted to theEuropean Medicines Agency for the treatment of moderately-to-severely active rheumatoid arthritis. - Within the
Boehringer Ingelheim and Lilly Diabetes Alliance :- The
FDA accepted the filing of data from the long-term clinical trial investigating cardiovascular (CV) outcomes for Jardiance® (empagliflozin) in adults with type 2 diabetes at high risk for CV events. The data were also submitted to European regulators. Jardiance is the only diabetes medicine to have demonstrated a significant reduction in both cardiovascular risk and cardiovascular death in a dedicated outcomes trial. - The fixed-dose combination tablet containing empagliflozin and linagliptin was submitted to European regulators.
- The
- The company received a positive opinion from
Europe's CHMP recommending approval of Portrazza in combination with gemcitabine and cisplatin chemotherapy for the treatment of adult patients with locally advanced or metastatic epidermal growth factor receptor expressing squamous NSCLC who have not received prior chemotherapy for this condition.
Clinical
- The company ceased development of basal insulin peglispro, a potential treatment for type 1 and type 2 diabetes.
- The company announced that psoriatic arthritis patients treated with ixekizumab for 24 weeks achieved significant improvements in signs and symptoms of their disease when compared with placebo, while also experiencing significantly less progression of radiographic structural joint damage, reduced disability when performing certain physical functions and improved skin clearance of plaque psoriasis.
Business Development/Other
- The company and Merck announced extensions of an existing collaboration to:
- Evaluate the safety and efficacy of the combination of Lilly's Alimta® (pemetrexed for injection) and Merck's Keytruda® (pembrolizumab) in a pivotal Phase III study in first-line nonsquamous NSCLC.
- Evaluate abemaciclib, Lilly's cyclin-dependent kinase (CDK) 4 and 6 inhibitor, and Merck's Keytruda in a Phase I study across multiple tumor types.
- The company announced an agreement with
Roche Diagnostics related to Roche's ongoing development of a commercially scalable cerebrospinal fluid assay for amyloid-beta 1-42. - The company revealed plans to expand its global research and development headquarters in
Indianapolis, Indiana . A new$70 million building within Lilly's development complex will feature a multi-disciplinary laboratory to facilitate collaboration across multiple R&D functions. - The company announced it will close its animal health manufacturing facility in
Sligo, Ireland . As a result of this action, the company expects to record a charge of approximately$100 million (pre-tax) or approximately$0.09 per share (after tax) in the first-quarter of 2016. - The company announced a dividend for the first quarter of 2016 of
$0.51 per share on outstanding common stock, representing a 2 percent increase. The annual indicated rate is now$2.04 per share. - As part of its previously announced share repurchase program, the company repurchased approximately
$250 million in company stock in the fourth quarter of 2015. For the full year 2015, the company returned approximately$2.9 billion in cash to shareholders through both its dividend and share repurchase program.
Fourth-Quarter Reported Results
In the fourth quarter of 2015, worldwide revenue was
Gross margin increased 3 percent to
Operating expenses in the fourth quarter of 2015, defined as the sum of research and development, and marketing, selling and administrative expenses, were
In the fourth quarter of 2015, the company recognized acquired in-process research and development charges of
In the fourth quarter of 2015, the company recognized asset impairment, restructuring and other special charges of
Operating income in the fourth quarter of 2015 was
Other income (expense) was income of
The effective tax rate was a benefit of 7.6 percent in the fourth quarter of 2015, compared with an expense of 16.6 percent in the fourth quarter of 2014. The effective tax rates for both periods include the full-year benefit of the renewal of certain
In the fourth quarter of 2015, net income increased 12 percent to
Fourth-Quarter Non-GAAP Measures
On a non-GAAP basis, worldwide revenue of
Gross margin increased 1 percent to
Operating expenses in the fourth quarter of 2015 were
Operating income in the fourth quarter of 2015 was
Other income (expense) was income of
The effective tax rate decreased 2.9 percentage points to 13.5 percent compared with the fourth quarter of 2014. The effective tax rates for both periods include the full-year benefit of the renewal of certain
Net income decreased 6 percent to
For further detail of non-GAAP measures, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this press release.
Fourth Quarter |
||||||||
2015 |
2014 |
% Change | ||||||
Earnings per share (reported) |
$ |
0.45 |
$ |
0.40 |
13% | |||
|
— |
(.01) |
||||||
Amortization of intangible assets |
.11 |
.08 |
||||||
Acquired in-process research and development |
.12 |
.06 |
||||||
Asset impairment, restructuring and other special charges |
.10 |
.34 |
||||||
Income associated with revisions to the agreement between |
— |
(.06) |
||||||
Earnings per share (non-GAAP) |
$ |
0.78 |
$ |
0.82 |
(5)% | |||
Numbers may not add due to rounding. |
Full-Year 2015 Reported Results
For the full-year 2015, worldwide revenue increased 2 percent to
Gross margin increased 2 percent to
Total operating expenses remained flat in 2015 compared with 2014. Research and development expenses increased 1 percent to
In 2015, the company recognized acquired in-process research and development charges of
$200.0 million to Pfizer following anFDA decision allowing the resumption of Phase III clinical trials for tanezumab.$149.0 million to Locemia Solutions associated with the acquisition of worldwide rights to an intranasal glucagon.$56.0 million to Innovent associated with a collaboration to develop potential oncology therapies.$50.0 million to Hanmi Pharmaceutical Co., Ltd., related to an exclusive license and collaboration agreement for Hanmi's oral Bruton's tyrosine kinase (BTK) inhibitor for the treatment of autoimmune and other diseases.$30.0 million toBioNTech AG related to a research collaboration to discover novel cancer immunotherapies.$50.0 million for other technology collaborations.
In 2014, the company recognized acquired in-process research and development charges of
$55.2 million associated with revisions to the agreement betweenLilly and Boehringer Ingelheim .$50.0 million related to the collaboration with Adocia.$50.0 million related to an agreement with AstraZeneca to co-develop and commercialize AZD3293, an oral beta secretase cleaving enzyme (BACE) inhibitor as a potential treatment for Alzheimer's disease.$45.0 million related to a collaboration agreement withImmunocore to research and potentially develop novel T cell-based cancer therapies.
In 2015, the company recognized asset impairment, restructuring, and other special charges of
Operating income in 2015 increased 1 percent compared with 2014 to
Other income (expense) was income of
The effective tax rate was 13.7 percent in 2015, compared with 20.3 percent in 2014. The effective tax rate for 2014 reflects the impact of a
For the full year 2015, net income increased 1 percent to
Full-Year 2015 Non-GAAP Measures
Operating income increased 10 percent to
For further detail of non-GAAP measures, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this press release.
Full-Year |
||||||||
2015 |
2014 |
% Change | ||||||
Earnings per share (reported) |
$ |
2.26 |
$ |
2.23 |
1% | |||
|
— |
(.07) |
||||||
|
.10 |
— |
||||||
Amortization of intangible assets |
.39 |
.32 |
||||||
|
— |
.11 |
||||||
Acquired in-process research and development |
.33 |
.12 |
||||||
Asset impairment, restructuring and other special charges |
.25 |
.38 |
||||||
Net charge related to repurchase of debt |
.09 |
— |
||||||
Income associated with revisions to the agreement between |
— |
(.06) |
||||||
Earnings per share (non-GAAP) |
$ |
3.43 |
$ |
3.03 |
13% | |||
Numbers may not add due to rounding. |
Select Revenue Highlights
|
||||||||||||||||||||
(Dollars in millions) |
Fourth Quarter |
Full-Year |
||||||||||||||||||
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
|||||||||||||||
Humalog® |
$ |
798.7 |
$ |
729.1 |
10% |
$ |
2,841.9 |
$ |
2,785.2 |
2% |
||||||||||
Alimta |
627.2 |
725.0 |
(13)% |
2,493.1 |
2,792.0 |
(11)% |
||||||||||||||
Cialis® |
638.4 |
622.4 |
3% |
2,310.7 |
2,291.0 |
1% |
||||||||||||||
Forteo® |
377.9 |
380.8 |
(1)% |
1,348.3 |
1,322.0 |
2% |
||||||||||||||
Humulin® |
358.6 |
395.6 |
(9)% |
1,307.4 |
1,400.1 |
(7)% |
||||||||||||||
Cymbalta |
223.6 |
367.3 |
(39)% |
1,027.6 |
1,614.7 |
(36)% |
||||||||||||||
Zyprexa® |
229.1 |
253.1 |
(9)% |
940.3 |
1,037.3 |
(9)% |
||||||||||||||
Strattera® |
221.6 |
194.9 |
14% |
784.0 |
738.5 |
6% |
||||||||||||||
Effient® |
140.3 |
137.8 |
2% |
523.0 |
522.2 |
0% |
||||||||||||||
Erbitux® |
176.2 |
96.0 |
83% |
485.0 |
373.3 |
30% |
||||||||||||||
Cyramza |
117.5 |
33.6 |
NM |
383.8 |
75.6 |
NM |
||||||||||||||
Trajenta®(a) |
101.7 |
82.7 |
23% |
356.8 |
328.8 |
9% |
||||||||||||||
Trulicity |
112.5 |
10.2 |
NM |
248.7 |
10.2 |
NM |
||||||||||||||
Evista |
52.8 |
72.1 |
(27)% |
237.3 |
419.8 |
(43)% |
||||||||||||||
|
811.7 |
633.3 |
28% |
3,181.0 |
2,346.6 |
36% |
||||||||||||||
Total Revenue |
$ |
5,375.6 |
$ |
5,121.3 |
5% |
$ |
19,958.7 |
$ |
19,615.6 |
2% |
||||||||||
(a)Trajenta revenue includes Jentadueto® NM - not meaningful
|
Humalog
For the fourth quarter of 2015, worldwide Humalog sales increased 10 percent, to
For the full year of 2015, worldwide Humalog sales increased 2 percent to
Alimta
For the fourth quarter of 2015, Alimta generated sales of
For the full year of 2015, worldwide Alimta sales decreased 11 percent to
Cialis
Cialis sales for the fourth quarter of 2015 increased 3 percent to
For the full year of 2015, worldwide Cialis sales increased 1 percent to
Forteo
Fourth-quarter 2015 sales of Forteo were
For the full year of 2015, worldwide Forteo sales increased 2 percent to
Humulin
Worldwide Humulin sales decreased 9 percent in the fourth quarter of 2015, to
For the full year of 2015, worldwide Humulin sales decreased 7 percent to
Cymbalta
For the fourth quarter of 2015, Cymbalta generated
For the full year of 2015, worldwide Cymbalta sales decreased 36 percent to
Zyprexa
In the fourth quarter of 2015, Zyprexa sales totaled
For the full year of 2015, worldwide Zyprexa sales decreased 9 percent to
Strattera
During the fourth quarter of 2015, Strattera generated
For the full year of 2015, worldwide Strattera sales increased 6 percent to
Effient
Effient sales were
For the full year of 2015, worldwide Effient sales remained flat at
Evista
Evista sales for the fourth quarter of 2015 were
For the full year of 2015, worldwide Evista sales decreased 43 percent to
In the fourth quarter of 2015, worldwide animal health sales totaled
Including the sales of
For the full year of 2015, worldwide animal health sales totaled
Including the sales of
2016 Financial Guidance
Earnings per share for 2016 are now expected to be in the range of
2016 Expectations |
|||
Earnings per share (reported) |
|
||
Amortization of intangible assets |
.41 |
||
Asset impairment, restructuring and other special charges, including |
.21 |
||
Earnings per share (non-GAAP) |
|
||
Amortization associated with the transfer of Erbitux commercialization rights is subject to final acquisition accounting adjustments. |
|||
Numbers may not add due to rounding |
The company still anticipates 2016 revenue between
Marketing, selling and administrative expenses are still expected to be in the range of
The 2016 tax rate is now expected to be approximately 21.0 percent on a reported basis due to the tax impact of amortization of intangibles, integration costs associated with the
The following table summarizes the company's 2016 financial guidance:
2016 Guidance | |||
Prior |
Revised | ||
Revenue |
|
| |
Gross Margin % of Revenue (reported) |
Approx. 74% |
Approx. 74% | |
Gross Margin % of Revenue (non-GAAP) |
Approx. 77% |
Approx. 77% | |
Marketing, Selling & Admin (reported) |
|
| |
Marketing, Selling & Admin (non-GAAP) |
|
| |
Research & Development |
|
| |
Other Income (Expense) |
|
| |
Tax Rate (reported) |
Approx. 20.5% |
Approx. 21.0% | |
Tax Rate (non-GAAP) |
Approx. 22.5% |
Approx. 22.5% | |
Earnings per Share (reported) |
|
| |
Earnings per Share (non-GAAP) |
|
| |
Capital Expenditures |
Approx. |
Approx. |
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the fourth-quarter 2015 financial results conference call through a link on Lilly's website at www.lilly.com. The conference call will be held today from
Lilly is a global healthcare leader that unites caring with discovery to make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and voluntarism. To learn more about Lilly, please visit us at www.lilly.com and http://newsroom.lilly.com/social-channels. F-LLY
This press release contains management's current intentions and expectations for the future, all of which are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "estimate", "project", "intend", "expect", "believe", "target", "anticipate" and similar expressions are intended to identify forward-looking statements. Actual results may differ materially due to various factors. There are significant risks and uncertainties in pharmaceutical research and development. There can be no guarantees that pipeline products will receive the necessary clinical and manufacturing regulatory approvals or that they will prove to be commercially successful. The company's results may also be affected by such factors as the timing of anticipated regulatory approvals and launches of new products; market
uptake of recently launched products; competitive developments affecting current products; the expiration of intellectual property protection for certain of the company's products; the company's ability to protect and enforce patents and other intellectual property; the impact of governmental actions regarding pricing, importation, and reimbursement for pharmaceuticals, including
Alimta® (pemetrexed, Lilly)
Basaglar® (insulin glargine injection, Lilly)
Cialis® (tadalafil, Lilly)
Cymbalta® (duloxetine hydrochloride, Lilly)
Cyramza® (ramucirumab, Lilly)
Effient® (prasugrel, Lilly)
Evista® (raloxifene hydrochloride, Lilly)
Forteo® (teriparatide of recombinant DNA origin injection, Lilly)
Humalog® (insulin lispro injection of recombinant DNA origin, Lilly)
Humulin® (human insulin of recombinant DNA origin, Lilly)
Jardiance® (empagliflozin, Boehringer Ingelheim)
Keytruda® (pembrolizumab, Merck)
Lantus® (insulin glargine injection, Sanofi)
Portrazza™ (necitumumab, Lilly)
Sentinel
® (lufenuron and milbemycin oxime, Virbac)
Strattera® (atomoxetine hydrochloride, Lilly)
Trajenta® (linagliptin, Boehringer Ingelheim)
Trulicity® (dulaglutide, Lilly)
Zyprexa® (olanzapine, Lilly)
| ||
|
| |
Worldwide Employees |
41,275* |
39,135 |
*The 2015 employment total reflects additions from the acquisition of |
| |||||||||||||||
Operating Results (Unaudited) - REPORTED | |||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
|
| ||||||||||||||
2015 |
2014 |
% Chg. |
2015 |
2014 |
% Chg. | ||||||||||
Revenue |
$ |
5,375.6 |
$ |
5,121.3 |
5% |
$ |
19,958.7 |
$ |
19,615.6 |
2% | |||||
Cost of sales |
1,389.2 |
1,253.1 |
11% |
5,037.2 |
4,932.5 |
2% | |||||||||
Research and development |
1,444.2 |
1,185.7 |
22% |
4,796.4 |
4,733.6 |
1% | |||||||||
Marketing, selling and administrative |
1,798.4 |
1,799.9 |
(0)% |
6,533.0 |
6,620.8 |
(1)% | |||||||||
Acquired in-process research |
199.0 |
105.2 |
89% |
535.0 |
200.2 |
NM | |||||||||
Asset impairment, restructuring and |
144.9 |
401.0 |
(64)% |
367.7 |
468.7 |
(22)% | |||||||||
Operating income |
399.9 |
376.4 |
6% |
2,689.4 |
2,659.8 |
1% | |||||||||
Net interest income (expense) |
(20.4) |
(13.2) |
(74.2) |
(27.8) |
|||||||||||
Net other income (expense) |
65.1 |
150.4 |
174.8 |
368.3 |
|||||||||||
Other income (expense) |
44.7 |
137.2 |
(67)% |
100.6 |
340.5 |
(70)% | |||||||||
Income before income taxes |
444.6 |
513.6 |
(13)% |
2,790.0 |
3,000.3 |
(7)% | |||||||||
Income taxes |
(33.8) |
85.1 |
NM |
381.6 |
609.8 |
(37)% | |||||||||
Net income |
$ |
478.4 |
$ |
428.5 |
12% |
$ |
2,408.4 |
$ |
2,390.5 |
1% | |||||
Earnings per share - diluted |
$ |
0.45 |
$ |
0.40 |
13% |
$ |
2.26 |
$ |
2.23 |
1% | |||||
Dividends paid per share |
$ |
0.50 |
$ |
0.49 |
2% |
$ |
2.00 |
$ |
1.96 |
2% | |||||
Weighted-average shares |
1,064,893 |
1,069,787 |
1,065,720 |
1,074,286 |
|||||||||||
NM - not meaningful |
|
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Three Months Ended |
Three Months Ended | |||||||||||||||||
GAAP Reported |
Adjustments(c) |
Non-GAAP Adjusted(a) |
GAAP Reported |
Adjustments(d) |
Non-GAAP Adjusted(a) | |||||||||||||
Revenue |
$ |
5,375.6 |
$ |
— |
$ |
5,375.6 |
$ |
5,121.3 |
$ |
278.3 |
$ |
5,399.6 |
||||||
Cost of sales |
1,389.2 |
(166.9) |
1,222.3 |
1,253.1 |
28.8 |
1,281.8 |
||||||||||||
Operating expenses(b) |
3,242.6 |
(2.1) |
3,240.5 |
2,985.6 |
91.4 |
3,077.0 |
||||||||||||
Acquired in-process development |
199.0 |
(199.0) |
— |
105.2 |
(105.2) |
— |
||||||||||||
Asset impairment, |
144.9 |
(144.9) |
— |
401.0 |
(401.0) |
— |
||||||||||||
Other income (expense) |
44.7 |
— |
44.7 |
137.2 |
(125.3) |
11.9 |
||||||||||||
Income taxes |
(33.8) |
163.1 |
129.3 |
85.1 |
87.1 |
172.2 |
||||||||||||
Net income |
$ |
478.4 |
349.8 |
$ |
828.2 |
$ |
428.5 |
452.1 |
$ |
880.5 |
||||||||
Earnings per share - |
$ |
0.45 |
0.33 |
$ |
0.78 |
$ |
0.40 |
0.41 |
$ |
0.82 |
Numbers may not add due to rounding.
(a) The company uses non-GAAP financial measures that differ from financial statements reported in conformity with
(b) Operating expenses include research and development and marketing, selling and administrative expenses.
(c) Adjustments to certain GAAP reported measures for the three months ended
(Dollars in millions, except per share data) |
Amortization(i) |
IPR&D(ii) |
Other specified items(iii) |
Total Adjustments | ||||||||
Revenue |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||
Cost of sales |
(166.9) |
— |
— |
(166.9) |
||||||||
Operating expenses |
(2.1) |
— |
— |
(2.1) |
||||||||
Acquired in-process |
— |
(199.0) |
— |
(199.0) |
||||||||
Asset impairment, |
— |
— |
(144.9) |
(144.9) |
||||||||
Other income (expense) |
— |
— |
— |
— |
||||||||
Income taxes |
55.4 |
69.7 |
38.1 |
163.1 |
||||||||
Net income |
$ |
113.6 |
$ |
129.4 |
$ |
106.8 |
$ |
349.8 |
||||
Earnings per share - diluted |
$ |
0.11 |
$ |
0.12 |
$ |
0.10 |
$ |
0.33 |
Numbers may not add due to rounding.
i. Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
ii. Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These costs are primarily related to a
iii. Exclude costs associated with restructuring to reduce the company's cost structure, asset impairments, and integration costs associated with the acquisition of
(e) Adjustments to certain GAAP reported measures for the three months ended
(Dollars in millions, except per share data) |
IPR&D(i) |
|
Legacy Amortization(iii) |
Boehringer Ingelheim Agreement Revisions(iv) |
Other specified items(v) |
Total Adjustments | ||||||||||||
Revenue |
$ |
— |
$ |
278.3 |
$ |
— |
$ |
— |
$ |
— |
$ |
278.3 |
||||||
Cost of sales |
— |
127.6 |
(98.8) |
— |
— |
28.8 |
||||||||||||
Operating expenses |
— |
127.3 |
(35.9) |
— |
— |
91.4 |
||||||||||||
Acquired in-process |
(105.2) |
— |
— |
— |
— |
(105.2) |
||||||||||||
Asset impairment, |
— |
— |
— |
— |
(401.0) |
(401.0) |
||||||||||||
Other income (expense) |
— |
(33.3) |
— |
(92.0) |
— |
(125.3) |
||||||||||||
Income taxes |
36.8 |
(4.2) |
46.2 |
(32.2) |
40.5 |
87.1 |
||||||||||||
Net income |
$ |
68.4 |
$ |
(5.8) |
$ |
88.8 |
$ |
(59.8) |
$ |
360.5 |
$ |
452.1 |
||||||
Earnings per share - diluted |
$ |
0.06 |
$ |
(0.01) |
$ |
0.08 |
$ |
(0.06) |
$ |
0.34 |
$ |
0.41 |
Numbers may not add due to rounding.
i. Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These charges were comprised of
ii. Inclusion of the results of
- Exclude results associated with the Sentinel® canine parasiticide franchise in the
U.S. , which was divested following the closing of the acquisition - Exclude amortization of intangibles
- Exclude integration and inventory step-up costs
- Other miscellaneous adjustments.
iii. Exclude legacy amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
iv. Exclude income associated with revisions to the agreement between
v. Exclude costs primarily associated with restructuring to reduce the company's cost structure.
|
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Twelve Months Ended |
Twelve Months Ended | |||||||||||||||||
GAAP Reported |
Adjustments(c) |
Non-GAAP Adjusted(a) |
GAAP Reported |
Adjustments(d) |
Non-GAAP Adjusted(a) | |||||||||||||
Revenue |
$ |
19,958.7 |
$ |
— |
$ |
19,958.7 |
$ |
19,615.6 |
$ |
1,081.1 |
$ |
20,696.7 |
||||||
Cost of sales |
5,037.2 |
(669.7) |
4,367.5 |
4,932.5 |
119.3 |
5,051.8 |
||||||||||||
Operating expenses(b) |
11,329.4 |
(109.5) |
11,219.9 |
11,354.4 |
310.9 |
11,665.2 |
||||||||||||
Acquired in-process |
535.0 |
(535.0) |
— |
200.2 |
(200.2) |
— |
||||||||||||
Asset impairment, |
367.7 |
(367.7) |
— |
468.7 |
(468.7) |
— |
||||||||||||
Other income (expense) |
100.6 |
152.7 |
253.3 |
340.5 |
(215.1) |
125.3 |
||||||||||||
Income taxes |
381.6 |
586.7 |
968.3 |
609.8 |
237.5 |
847.4 |
||||||||||||
Net income |
$ |
2,408.4 |
1,247.9 |
$ |
3,656.3 |
$ |
2,390.5 |
867.2 |
$ |
3,257.6 |
||||||||
Earnings per share - |
$ |
2.26 |
1.17 |
$ |
3.43 |
$ |
2.23 |
0.80 |
$ |
3.03 |
Numbers may not add due to rounding.
(a) The company uses non-GAAP financial measures that differ from financial statements reported in conformity with
(b) Operating expenses include research and development and marketing, selling and administrative expenses.
(c) Adjustments to certain GAAP reported measures for the twelve months ended
(Dollars in millions, except per share data) |
Amortization(i) |
IPR&D(ii) |
Inventory step-up(iii) |
Repurchase of debt(iv) |
Other specified items(v) |
Total Adjustments | ||||||||||||
Revenue |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||
Cost of sales |
(516.7) |
— |
(153.0) |
— |
— |
(669.7) |
||||||||||||
Operating expenses |
(109.5) |
— |
— |
— |
— |
(109.5) |
||||||||||||
Acquired in-process research |
— |
(535.0) |
— |
— |
— |
(535.0) |
||||||||||||
Asset impairment, |
— |
— |
— |
— |
(367.7) |
(367.7) |
||||||||||||
Other income (expense) |
— |
— |
— |
152.7 |
— |
152.7 |
||||||||||||
Income taxes |
206.2 |
187.3 |
43.6 |
53.5 |
96.2 |
586.7 |
||||||||||||
Net income |
$ |
419.9 |
$ |
347.8 |
$ |
109.4 |
$ |
99.3 |
$ |
271.6 |
$ |
1,247.9 |
||||||
Earnings per share - diluted |
$ |
0.39 |
$ |
0.33 |
$ |
0.10 |
$ |
0.09 |
$ |
0.25 |
$ |
1.17 |
Numbers may not add due to rounding.
i. Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
ii. Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These charges included a
iii. Exclude inventory step-up costs associated with the acquisition of
iv. Exclude a net charge associated with the repurchase of
v. Exclude costs associated with restructuring to reduce the company's cost structure, asset impairments, and integration costs associated with the acquisition of
(d) Adjustments to certain GAAP reported measures for the twelve months ended
(Dollars in millions, except per share data) |
IPR&D(i) |
|
Legacy Amortization(iii) |
Branded Prescription Drug Fee(iv) |
Boehringer Ingelheim Agreement Revisions(v) |
Other specified items(vi) |
Total Adjustments | ||||||||||||||
Revenue |
$ |
— |
$ |
1,081.1 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
1,081.1 |
|||||||
Cost of sales |
— |
504.4 |
(385.1) |
— |
— |
— |
119.3 |
||||||||||||||
Operating expenses |
— |
575.0 |
(145.1) |
(119.0) |
— |
— |
310.9 |
||||||||||||||
Acquired in-process |
(200.2) |
— |
— |
— |
— |
— |
(200.2) |
||||||||||||||
Asset impairment, |
— |
— |
— |
— |
— |
(468.7) |
(468.7) |
||||||||||||||
Other income (expense) |
— |
(123.1) |
— |
— |
(92.0) |
— |
(215.1) |
||||||||||||||
Income taxes |
70.0 |
(42.9) |
181.6 |
— |
(32.2) |
61.0 |
237.5 |
||||||||||||||
Net income |
$ |
130.2 |
$ |
(78.7) |
$ |
348.8 |
$ |
119.0 |
$ |
(59.8) |
$ |
407.7 |
$ |
867.2 |
|||||||
Earnings per share - |
$ |
0.12 |
$ |
(0.07) |
$ |
0.32 |
$ |
0.11 |
$ |
(0.06) |
$ |
0.38 |
$ |
0.80 |
Numbers may not add due to rounding.
i. Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These charges were comprised of
ii. Inclusion of the results of
- Exclude results associated with the Sentinel® canine parasiticide franchise in the
U.S. , which was divested following the closing of the acquisition - Exclude amortization of intangibles
- Exclude integration and inventory step-up costs
- Other miscellaneous adjustments.
iii. Exclude legacy amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
iv. Exclude charge created by the
v. Exclude income associated with revisions to the agreement between
vi. Exclude costs primarily associated with restructuring to reduce the company's cost structure.
Refer to: |
|
|
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SOURCE
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