Lilly Reports Third-Quarter 2015 Results, Revises 2015 Financial Guidance
$ in millions, except per share data |
Third Quarter |
% | |||||||
2015 |
2014 |
Change | |||||||
Revenue - Reported |
$ |
4,959.7 |
$ |
4,875.6 |
2 |
% | |||
Net Income - Reported |
799.7 |
500.6 |
60 |
% | |||||
EPS - Reported |
0.75 |
0.47 |
60 |
% | |||||
Revenue - non-GAAP |
4,959.7 |
5,151.0 |
(4) |
% | |||||
Net Income - non-GAAP |
949.6 |
781.2 |
22 |
% | |||||
EPS - non-GAAP |
0.89 |
0.73 |
22 |
% |
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
"We are pleased with our strong third-quarter results, which reflect the ongoing actions we are taking to grow revenue and increase productivity while we are replenishing and advancing our pipeline with an array of new, innovative therapies," said
"This quarter, we had higher sales volume for several key products, including recently launched Cyramza and Trulicity. We also launched several new products in various global markets, including Synjardy in the U.S. for type 2 diabetes. Promising pipeline momentum continued with encouraging news for baricitinib and abemaciclib, while Jardiance reported positive cardiovascular outcomes. Finally, we continued to create new collaborations and pursue smaller-scale acquisitions to bolster our pipeline and our product portfolio."
Looking forward, Lechleiter noted that Lilly could have a regulatory submission and/or decision for multiple potential new medicines in the next 18 months - reinforcing the company's confidence in its innovation-based strategy and in its ability to grow revenue and expand margins over the balance of this decade.
Key Events Over the Last Three Months
Commercial
- The company launched Basaglar®, a basal insulin product, in
Japan , theUK ,Germany and other European markets. Basaglar is part of the Boehringer Ingelheim andEli Lilly andCompany Diabetes Alliance . - The company launched Trulicity® in
Japan as a treatment for type 2 diabetes.
Regulatory
- The
U.S. Food and Drug Administration (FDA) approved Synjardy® (empagliflozin and metformin hydrochloride) tablets and the product was launched in the U.S. for the treatment of adults with type 2 diabetes. Synjardy is part of the Boehringer Ingelheim andEli Lilly andCompany Diabetes Alliance . - The
FDA granted Breakthrough Therapy Designation to abemaciclib for patients with refractory hormone-receptor-positive advanced or metastatic breast cancer. Breakthrough Therapy Designation is designed to expedite the development and review of potential medicines that are intended to treat a serious condition, and preliminary clinical evidence indicates that the treatment may demonstrate substantial improvement over available therapy on a clinically significant endpoint.
Clinical
- The company and Boehringer Ingelheim announced positive results from a long-term clinical trial investigating cardiovascular (CV) outcomes for Jardiance® in adults with type 2 diabetes at high risk for CV events. 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 company will terminate the Phase III trials of evacetrapib for the treatment of high-risk atherosclerotic cardiovascular disease due to insufficient efficacy.
- The company and Incyte Corporation announced positive top-line results for baricitinib, an investigational medicine for patients with moderately-to-severely active rheumatoid arthritis.
- The third Phase III study evaluating safety and efficacy of baricitinib met its primary objective of demonstrating non-inferiority of baricitinib monotherapy to methotrexate monotherapy based on ACR20 response rate after 24 weeks of treatment. Additionally, baricitinib was superior to methotrexate based on ACR20 response.
- The fourth Phase III study of baricitinib met its primary objective of demonstrating superiority compared to placebo after 12 weeks of treatment based on ACR20 response rate. Baricitinib was also superior to adalimumab in improving signs and symptoms of rheumatoid arthritis as measured by ACR20 response and improvement in the DAS28-hsCRP score after 12 weeks of treatment.
Business Development/Other
- The company announced external innovation agreements with:
- AstraZeneca to expand their existing immuno-oncology collaboration exploring novel combination therapies for the treatment of patients with solid tumors. The company and AstraZeneca will evaluate the safety and efficacy of a range of additional combinations across the companies' complementary portfolios.
ImaginAb Inc. to conduct preclinical research studying potential novel T-cell-based immuno-oncology therapies.Innovent Biologics, Inc. to expand their collaboration to support the development and potential commercialization of up to three anti-PD-1 based bispecific antibodies for cancer treatments over the next decade, both inside and outside ofChina .
- The company acquired worldwide rights from Locemia Solutions to a Phase III intranasal glucagon, a potential treatment for severe hypoglycemia in people with diabetes treated with insulin.
- Bristol-Myers Squibb transferred its Erbitux® commercialization rights to Lilly in
North America . - The company entered into a settlement agreement to resolve patent litigation with Sanofi regarding the company's insulin glargine product, Basaglar. As a part of the agreement, Lilly and its alliance partner, Boehringer Ingelheim, will have the ability to launch Basaglar in the U.S. on
December 15, 2016 . Under the terms of the agreement, Sanofi granted Lilly a royalty-bearing license so Lilly can manufacture and sell Basaglar in the Kwikpen® device globally. The U.S. District Court for the Southern District of Indiana ruled that the Alimta® vitamin regimen patent would be infringed by the generic challengers' proposed products. The patent provides intellectual property protection for Alimta untilMay 2022 .- The Japan Patent Office issued a notice of closure in the trial regarding the validity of Lilly's vitamin regimen patent for Alimta. We expect a written decision upholding the patent validity in the coming weeks. This is the first of two decisions pending. If the patents are ultimately upheld through all challenges and appeals, they would provide intellectual property protection for Alimta in
Japan untilJune 2021 . - The company plans to add 30,000 square feet and approximately 50 new jobs to its research and development presence at the
Alexandria Center for Life Science inNew York, New York . Upon completion in 2016, this space will include a translational immuno-oncology hub and a Lilly "portal," which will provide local academic scientists with opportunities for collaborative access to cutting-edge drug discovery capabilities.
Third-Quarter Reported Results
In the third quarter of 2015, worldwide revenue was
Gross margin increased 3 percent to
Operating expenses in the third quarter of 2015, defined as the sum of research and development and marketing, selling and administrative expenses, were
There were no acquired in-process research and development charges in the third quarter of 2015. In the third quarter of 2014, the company recognized acquired in-process research and development charges totaling
In the third quarter of 2015, the company recognized asset impairment, restructuring and other special charges of
Operating income in the third quarter of 2015 was
Other income (expense) was income of
The effective tax rate was 23.7 percent in the third quarter of 2015, compared with 23.6 percent in the third quarter of 2014. The 2015 effective tax rate reflects the impact of an increased percentage of forecasted earnings in higher taxed jurisdictions. The 2014 effective tax rate reflects the impact of a
In the third quarter of 2015, net income and earnings per share both increased 60 percent to
Third-Quarter 2015 Non-GAAP Measures
On a non-GAAP basis, worldwide revenue was
Gross margin remained relatively flat at
Operating expenses in the third quarter of 2015 were
Other income (expense) was income of
The effective tax rate increased 1.6 percentage points compared to the third quarter of 2014 to 24.9 percent, due to an increased percentage of forecasted earnings in higher taxed jurisdictions.
Net income and earnings per share both increased 22 percent to
For further detail, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this release.
Third Quarter |
||||||||
2015 |
2014 |
% Change | ||||||
Earnings per share (reported) |
$ |
0.75 |
$ |
0.47 |
60% | |||
|
— |
(.01) |
||||||
|
.01 |
— |
||||||
Amortization of intangible assets |
.10 |
.08 |
||||||
Branded Prescription Drug Fee |
— |
.11 |
||||||
Acquired in-process research and development |
— |
.06 |
||||||
Asset impairment, restructuring and other special charges |
.03 |
.02 |
||||||
Earnings per share (non-GAAP) |
$ |
0.89 |
$ |
0.73 |
22% | |||
Numbers may not add due to rounding. |
Year-to-Date Results
For the first nine months of 2015, worldwide revenue increased 1 percent compared to the same period in 2014 to
For further detail, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this release.
Year-to-date |
||||||||
2015 |
2014 |
% Change | ||||||
Earnings per share (reported) |
$ |
1.81 |
$ |
1.82 |
(1)% | |||
|
— |
(.06) |
||||||
|
.10 |
— |
||||||
Amortization of intangible assets |
.29 |
.24 |
||||||
Branded Prescription Drug Fee |
— |
.11 |
||||||
Acquired in-process research and development |
.20 |
.06 |
||||||
Asset impairment, restructuring and other special charges |
.15 |
.04 |
||||||
Net charge related to repurchase of debt |
.09 |
— |
||||||
Earnings per share (non-GAAP) |
$ |
2.65 |
$ |
2.21 |
20% | |||
Numbers may not add due to rounding. |
Select Revenue Highlights |
||||||||||||||||||||
(Dollars in millions) |
Third Quarter |
Year-to-Date |
||||||||||||||||||
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
|||||||||||||||
Humalog® |
$ |
705.0 |
$ |
706.1 |
0% |
$ |
2,043.3 |
$ |
2,056.1 |
(1)% |
||||||||||
Alimta |
628.5 |
723.4 |
(13)% |
1,865.8 |
2,067.0 |
(10)% |
||||||||||||||
Cialis® |
566.1 |
568.4 |
0% |
1,672.3 |
1,668.6 |
0% |
||||||||||||||
Forteo® |
348.9 |
332.2 |
5% |
970.4 |
941.2 |
3% |
||||||||||||||
Humulin® |
316.7 |
335.9 |
(6)% |
948.8 |
1,004.5 |
(6)% |
||||||||||||||
Cymbalta |
242.9 |
368.0 |
(34)% |
804.0 |
1,247.5 |
(36)% |
||||||||||||||
Zyprexa® |
237.9 |
257.4 |
(8)% |
711.2 |
784.2 |
(9)% |
||||||||||||||
Strattera® |
196.9 |
191.9 |
3% |
562.4 |
543.7 |
3% |
||||||||||||||
Effient® |
132.1 |
131.5 |
0% |
382.7 |
384.4 |
0% |
||||||||||||||
Cyramza |
111.2 |
28.4 |
NM |
266.4 |
42.0 |
NM |
||||||||||||||
Trajenta®(a) |
92.7 |
78.9 |
17% |
255.0 |
246.1 |
4% |
||||||||||||||
Evista |
58.0 |
89.5 |
(35)% |
184.5 |
347.8 |
(47)% |
||||||||||||||
Trulicity |
73.7 |
— |
NM |
136.2 |
— |
NM |
||||||||||||||
|
778.8 |
584.7 |
33% |
2,369.3 |
1,713.3 |
38% |
||||||||||||||
Total Revenue |
4,959.7 |
4,875.6 |
2% |
14,583.1 |
14,494.3 |
1% |
||||||||||||||
(a)Trajenta revenue includes Jentadueto® NM - not meaningful
|
Humalog
For the third quarter of 2015, worldwide Humalog sales remained flat at
Alimta
For the third quarter of 2015, Alimta generated sales of
Cialis
Cialis sales for the third quarter of 2015 remained flat at
Forteo
Third-quarter 2015 sales of Forteo were
Humulin
Worldwide Humulin sales of
Cymbalta
For the third quarter of 2015, Cymbalta generated
Zyprexa
In the third quarter of 2015, Zyprexa sales totaled
Strattera
During the third quarter of 2015, Strattera generated
Effient
Effient sales remained flat at
Evista
Evista sales for the third quarter of 2015 were
In the third quarter of 2015, worldwide animal health sales totaled
Including the sales of
2015 Financial Guidance
The company has revised certain elements of its 2015 financial guidance on a reported basis and on a non-GAAP basis. Full-year 2015 earnings per share are now expected to be in the range of
2015 Expectations |
||
Earnings per share (reported) |
|
|
Amortization of intangible assets including the impact of the transfer of Erbitux rights |
.39 |
|
Acquired in-process research and development charges |
.20 |
|
Net charge related to repurchase of debt |
.09 |
|
Asset impairment, restructuring, integration and inventory step-up costs, primarily related to the acquisition of |
.31 |
|
Earnings per share (non-GAAP) |
|
|
Amortization and inventory step-up costs associated with the acquisition of |
The company still expects 2015 revenue of between
The company still expects gross margin as a percent of revenue will be approximately 74.5 percent on a reported basis. On a non-GAAP basis, gross margin as a percent of revenue is still expected to be approximately 78.0 percent, reflecting the exclusion of inventory step-up costs associated with the acquisition of
Marketing, selling and administrative expenses on a reported basis are now expected to be in the range of
Other income (expense) is now expected to be in a range between
The 2015 tax rate is now expected to be approximately 16.5 percent on a reported basis and 21.5 percent on a non-GAAP basis, reflecting the impact of an increased percentage of forecasted earnings in higher taxed jurisdictions. Both rates assume a full-year 2015 benefit of the R&D tax credit and other tax provisions up for extension. If these items are not extended, the non-GAAP 2015 tax rate would be approximately 1.5 percentage points higher.
Capital expenditures are now expected to be approximately
The company's 2015 financial guidance, on a reported basis, does not include the potential impact of the recent acquisition of worldwide rights to an intranasal glucagon from Locemia Solutions.
The following table summarizes the company's 2015 financial guidance:
2015 Guidance |
||||
Prior |
Revised |
|||
Revenue |
|
|
||
Gross Margin % of Revenue (reported) |
Approx. 74.5% |
Approx. 74.5% |
||
Gross Margin % of Revenue (non-GAAP) |
Approx. 78.0% |
Approx. 78.0% |
||
Marketing, Selling & Admin (reported) |
|
|
||
Marketing, Selling & Admin (non-GAAP) |
|
|
||
Research & Development |
|
|
||
Other Income/(Expense) (reported) |
( |
|
||
Other Income/(Expense) (non-GAAP)
|
|
|
||
Tax Rate (reported) |
Approx. 14.5% |
Approx. 16.5% |
||
Tax Rate (non-GAAP) |
Approx. 21.0% |
Approx. 21.5% |
||
Earnings per share (reported) |
|
|
||
Earnings per share (non-GAAP) |
|
|
||
Capital Expenditures |
Approx. |
Approx. |
||
The company's 2015 financial guidance is subject to final accounting adjustments for the acquisition of
|
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the third-quarter 2015 financial results conference call through a link on Lilly's website at www.lilly.com. The conference call will begin at
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 volunteerism. 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," 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 with respect to pipeline products, that the 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 U.S. health care reform; regulatory compliance problems or government investigations; regulatory actions regarding currently marketed products; unexpected safety or efficacy concerns associated with the company's products; issues with product supply stemming from manufacturing difficulties or disruptions; regulatory changes or other developments; changes in patent law or regulations related to data-package exclusivity; litigation involving current or future products; the extent to which
third-party indemnification obligations relating to product liability litigation and similar matters will be performed; unauthorized disclosure of trade secrets or other confidential data stored in the company's information systems and networks; changes in tax law and regulations; changes in inflation, interest rates, and foreign currency exchange rates; asset impairments and restructuring charges; changes in accounting standards promulgated by the
Alimta® (pemetrexed disodium, Lilly)
Basaglar® (insulin glargine injection, Lilly)
Cialis® (tadalafil, Lilly)
Cymbalta® (duloxetine hydrochloride, Lilly)
Cyramza® (ramucirumab, Lilly)
Effient® (prasugrel, Lilly)
Erbitux® (cetuximab, Bristol-Myers Squibb Company)
Evista® (raloxifene hydrochloride, Lilly)
Forteo® (teriparatide of recombinant DNA origin injection, Lilly)
Glyxambi® (empagliflozin/linagliptin, Boehringer Ingelheim)
Humalog® (insulin lispro injection of recombinant DNA origin, Lilly)
Humulin® (human insulin of recombinant DNA origin, Lilly)
Jardiance® (empagliflozin, Boehringer Ingelheim)
Jentadueto
® (linagliptin/metformin, Boehringer Ingelheim)
Sentinel® (lufenuron and milbemycin oxime, Virbac)
Strattera® (atomoxetine hydrochloride, Lilly)
Synjardy® (empagliflozin/metformin, Boehringer Ingelheim)
Trajenta® (linagliptin, Boehringer Ingelheim)
Trulicity® (dulaglutide, Lilly)
Zyprexa® (olanzapine, Lilly)
|
||
|
| |
Worldwide Employees |
41,265* |
39,135 |
*Employment totals reflect additions from the acquisition of |
|
Operating Results (Unaudited) - REPORTED |
(Dollars in millions, except per share data) |
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
| ||||||||||||||
2015 |
2014 |
% Chg. |
2015 |
2014 |
% Chg. | ||||||||||
Revenue |
$ |
4,959.7 |
$ |
4,875.6 |
2% |
$ |
14,583.1 |
$ |
14,494.3 |
1% | |||||
Cost of sales |
1,236.9 |
1,267.0 |
(2)% |
3,648.0 |
3,679.4 |
(1)% | |||||||||
Research and development |
1,143.4 |
1,243.2 |
(8)% |
3,352.2 |
3,547.9 |
(6)% | |||||||||
Marketing, selling and administrative |
1,575.7 |
1,672.1 |
(6)% |
4,734.6 |
4,820.9 |
(2)% | |||||||||
Acquired in-process research |
— |
95.0 |
NM |
336.0 |
95.0 |
NM | |||||||||
Asset impairment, restructuring and other special charges |
42.4 |
36.3 |
17% |
222.8 |
67.7 |
NM | |||||||||
Operating income |
961.3 |
562.0 |
71% |
2,289.5 |
2,283.4 |
0% | |||||||||
Net interest income (expense)
|
(18.1) |
(9.3) |
(53.8) |
(14.6) |
|||||||||||
Net other income (expense)
|
104.6 |
102.8 |
109.7 |
217.9 |
|||||||||||
Other income (expense) |
86.5 |
93.5 |
(7)% |
55.9 |
203.3 |
(73)% | |||||||||
Income before income taxes |
1,047.8 |
655.5 |
60% |
2,345.4 |
2,486.7 |
(6)% | |||||||||
Income taxes |
248.1 |
154.9 |
60% |
415.4 |
524.7 |
(21)% | |||||||||
Net income |
$ |
799.7 |
$ |
500.6 |
60% |
$ |
1,930.0 |
$ |
1,962.0 |
(2)% | |||||
Earnings per share - diluted |
$ |
0.75 |
$ |
0.47 |
60% |
$ |
1.81 |
$ |
1.82 |
(1)% | |||||
Dividends paid per share |
$ |
0.50 |
$ |
0.49 |
2% |
$ |
1.50 |
$ |
1.47 |
2% | |||||
Weighted-average shares outstanding (thousands) - diluted |
1,065,159 |
1,074,386 |
1,065,961 |
1,075,740 |
|||||||||||
NM - not meaningful |
|
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)(a) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Three Months Ended |
Three Months Ended | |||||||||||||||||
GAAP Reported |
Adjustments(c) |
Non-GAAP Adjusted |
GAAP Reported |
Adjustments(d) |
Non-GAAP Adjusted | |||||||||||||
Revenue |
$ |
4,959.7 |
$ |
— |
$ |
4,959.7 |
$ |
4,875.6 |
$ |
275.4 |
$ |
5,151.0 |
||||||
Cost of sales |
1,236.9 |
(137.9) |
1,099.0 |
1,267.0 |
32.6 |
1,299.7 |
||||||||||||
Operating expenses(b) |
2,719.1 |
(35.8) |
2,683.3 |
2,915.3 |
(23.2) |
2,892.0 |
||||||||||||
Acquired in-process research and development |
— |
— |
— |
95.0 |
(95.0) |
— |
||||||||||||
Asset impairment, restructuring and other special charges |
42.4 |
(42.4) |
— |
36.3 |
(36.3) |
— |
||||||||||||
Other income (expense) |
86.5 |
— |
86.5 |
93.5 |
(34.1) |
59.3 |
||||||||||||
Income taxes |
248.1 |
66.2 |
314.3 |
154.9 |
82.4 |
237.4 |
||||||||||||
Net income |
$ |
799.7 |
$ |
149.8 |
$ |
949.6 |
$ |
500.6 |
$ |
280.7 |
$ |
781.2 |
||||||
Earnings per share - diluted
|
$ |
0.75 |
$ |
0.14 |
$ |
0.89 |
$ |
0.47 |
$ |
0.26 |
$ |
0.73 |
Numbers may not add due to rounding.
(a) The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The company's non-GAAP measures adjust reported results to exclude items that are typically highly variable, difficult to predict, and of a size that could have a substantial impact on the company's reported operations for a period. Non-GAAP adjusted amounts for 2014 assume the
(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) |
Inventory |
Other |
Total Adjustments | ||||||||
Revenue |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||
Cost of sales |
(116.7) |
(21.2) |
— |
(137.9) |
||||||||
Operating expenses |
(35.8) |
— |
— |
(35.8) |
||||||||
Acquired in-process research and development |
— |
— |
— |
— |
||||||||
Asset impairment, restructuring and other special charges |
— |
— |
(42.4) |
(42.4) |
||||||||
Other income (expense) |
— |
— |
— |
— |
||||||||
Income taxes |
51.0 |
6.0 |
9.3 |
66.2 |
||||||||
Net income |
$ |
101.6 |
$ |
15.1 |
$ |
33.1 |
$ |
149.8 |
||||
Earnings per share - diluted |
$ |
0.10 |
$ |
0.01 |
$ |
0.03 |
$ |
0.14 |
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 inventory step-up costs associated with the acquisition of
iii. 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 three months ended
(Dollars in millions, except per share data) |
IPR&D(i) |
Novartis |
Legacy Amortization(iii) |
Branded Prescription Drug Fee(iv) |
Other specified items(v) |
Total Adjustments | ||||||||||||
Revenue |
$ |
— |
$ |
275.4 |
$ |
— |
$ |
— |
$ |
— |
$ |
275.4 |
||||||
Cost of sales |
— |
130.7 |
(98.1) |
— |
— |
32.6 |
||||||||||||
Operating expenses |
— |
132.3 |
(36.5) |
(119.0) |
— |
(23.2) |
||||||||||||
Acquired in-process research and development |
(95.0) |
— |
— |
— |
— |
(95.0) |
||||||||||||
Asset impairment, restructuring and other special charges |
— |
— |
— |
(36.3) |
(36.3) |
|||||||||||||
Other income (expense) |
(34.1) |
— |
— |
— |
(34.1) |
|||||||||||||
Income taxes |
33.2 |
(8.0) |
46.1 |
— |
11.1 |
82.4 |
||||||||||||
Net income |
$ |
61.8 |
$ |
(13.8) |
$ |
88.5 |
$ |
119.0 |
$ |
25.2 |
$ |
280.7 |
||||||
Earnings per share - diluted |
$ |
0.06 |
$ |
(0.01) |
$ |
0.08 |
$ |
0.11 |
$ |
0.02 |
$ |
0.26 |
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 costs included
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 costs primarily associated with restructuring to reduce the company's cost structure.
|
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)(a) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Nine Months Ended |
Nine Months Ended | |||||||||||||||||
GAAP Reported |
Adjustments(c) |
Non-GAAP Adjusted |
GAAP Reported |
Adjustments(d) |
Non-GAAP Adjusted | |||||||||||||
Total revenue |
$ |
14,583.1 |
$ |
— |
$ |
14,583.1 |
$ |
14,494.3 |
$ |
802.8 |
$ |
15,297.1 |
||||||
Cost of sales |
3,648.0 |
(502.8) |
3,145.2 |
3,679.4 |
90.5 |
3,770.0 |
||||||||||||
Operating expenses(b) |
8,086.8 |
(107.4) |
7,979.4 |
8,368.8 |
219.5 |
8,588.2 |
||||||||||||
Acquired in-process research and development |
336.0 |
(336.0) |
— |
95.0 |
(95.0) |
— |
||||||||||||
Asset impairment, restructuring and other special charges |
222.8 |
(222.8) |
— |
67.7 |
(67.7) |
— |
||||||||||||
Other income (expense) |
55.9 |
152.7 |
208.6 |
203.3 |
(89.8) |
113.4 |
||||||||||||
Income taxes |
415.4 |
423.5 |
839.0 |
524.7 |
150.4 |
675.2 |
||||||||||||
Net income |
$ |
1,930.0 |
898.1 |
$ |
2,828.1 |
$ |
1,962.0 |
415.1 |
$ |
2,377.1 |
||||||||
Earnings per share - diluted
|
$ |
1.81 |
0.84 |
$ |
2.65 |
$ |
1.82 |
0.39 |
$ |
2.21 |
Numbers may not add due to rounding.
(a) The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The company's non-GAAP measures adjust reported results to exclude items that are typically highly variable, difficult to predict, and of a size that could have a substantial impact on the company's reported operations for a period. Non-GAAP adjusted amounts for 2014 assume the
(b) Operating expenses include research and development and marketing, selling and administrative expenses.
(c) Adjustments to certain GAAP reported measures for the nine 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 |
(349.8) |
— |
(153.0) |
— |
— |
(502.8) |
||||||||||||
Operating expenses |
(107.4) |
— |
— |
— |
— |
(107.4) |
||||||||||||
Acquired in-process research and development |
— |
(336.0) |
— |
— |
— |
(336.0) |
||||||||||||
Asset impairment, restructuring and other special charges |
— |
— |
— |
— |
(222.8) |
(222.8) |
||||||||||||
Other income (expense) |
— |
— |
— |
152.7 |
— |
152.7 |
||||||||||||
Income taxes |
150.8 |
117.6 |
43.6 |
53.5 |
58.0 |
423.5 |
||||||||||||
Net income |
$ |
306.3 |
$ |
218.4 |
$ |
109.4 |
$ |
99.3 |
$ |
164.7 |
$ |
898.1 |
||||||
Earnings per share - diluted |
$ |
0.29 |
$ |
0.20 |
$ |
0.10 |
$ |
0.09 |
$ |
0.15 |
$ |
0.84 |
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 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 nine months ended
(Dollars in millions, except per share data) |
IPR&D(i) |
Novartis |
Legacy Amortization(iii) |
Branded Prescription Drug Fee(iv) |
Other specified items(v) |
Total Adjustments | ||||||||||||
Revenue |
$ |
— |
$ |
802.8 |
$ |
— |
$ |
— |
$ |
— |
$ |
802.8 |
||||||
Cost of sales |
— |
376.8 |
(286.3) |
— |
— |
90.5 |
||||||||||||
Operating expenses |
— |
447.7 |
(109.2) |
(119.0) |
— |
219.5 |
||||||||||||
Acquired in-process research and development |
(95.0) |
— |
— |
— |
— |
(95.0) |
||||||||||||
Asset impairment, restructuring and other special charges |
— |
— |
— |
— |
(67.7) |
(67.7) |
||||||||||||
Other income (expense) |
— |
(89.8) |
— |
— |
— |
(89.8) |
||||||||||||
Income taxes |
33.2 |
(38.7) |
135.4 |
— |
20.5 |
150.4 |
||||||||||||
Net income |
$ |
61.8 |
$ |
(72.9) |
$ |
260.0 |
$ |
119.0 |
$ |
47.2 |
$ |
415.1 |
||||||
Earnings per share - diluted |
$ |
0.06 |
$ |
(0.06) |
$ |
0.24 |
$ |
0.11 |
$ |
0.04 |
$ |
0.39 |
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 costs included
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 costs primarily associated with restructuring to reduce the company's cost structure.
Refer to: |
|
|
Logo - http://photos.prnewswire.com/prnh/20031219/LLYLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lilly-reports-third-quarter-2015-results-revises-2015-financial-guidance-300164603.html
SOURCE
News Provided by Acquire Media