Lilly Announces Completion of Avid Acquisition and FDA Priority Review for florbetapir

INDIANAPOLIS, Dec. 22, 2010 /PRNewswire-FirstCall/ — Eli Lilly and Company
(NYSE: LLY) today announced that it has completed the acquisition of Avid
Radiopharmaceuticals, Inc., a privately held company developing novel molecular
imaging compounds intended for the detection and monitoring of chronic human
diseases. The transaction, first announced on November 8, 2010, has received the
approval of Avid stockholders and clearance under the Hart-Scott-Rodino
Antitrust Improvements Act. All other closing conditions have also been met.

Under the terms of the definitive merger agreement, Lilly acquired all
outstanding shares of Avid for an upfront payment of $300 million, subject to
adjustment based on existing cash on hand at closing. Avid stockholders will
also be eligible for up to $500 million in additional payments contingent upon
potential future regulatory and commercial milestones for florbetapir. The
impact of the acquisition will be reflected in Lilly’s fourth quarter 2010
financial statements, but is not expected to be material.

Lilly and Avid are also pleased to announce that the U.S. Food and Drug
Administration (FDA) has assigned priority review designation to the marketing
application for florbetapir, Avid’s lead program in development. Florbetapir is
a molecular imaging agent under investigation for detecting the presence of
amyloid plaque in the brain. Beta-amyloid plaque is a defining pathology of
Alzheimer’s disease. The Peripheral and Central Nervous System Drugs Advisory
Committee of the FDA will hold a meeting to discuss florbetapir’s new drug
application on January 20, 2011.

About florbetapir

Florbetapir F 18 (18F-AV-45), used with positron emission tomography (PET)
technology is being assessed for the ability to detect beta-amyloid plaque
deposits in living patients. Florbetapir was the first beta-amyloid imaging
compound to enter multi-center, IND clinical studies in the U.S., and has now
been studied in more than a dozen trials in over 700 subjects ranging from
cognitively normal individuals to those with Alzheimer’s dementia. In addition
to the pivotal Phase III Image-to-Autopsy study, other clinical studies are also
being conducted in the E.U., North and South America, Australia and Asia.

About Eli Lilly and Company

Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of pharmaceutical products by applying the latest research from its
own worldwide laboratories and from collaborations with eminent scientific
organizations. Headquartered in Indianapolis, Ind., Lilly provides answers -
through medicines and information – for some of the world’s most urgent medical
needs. Additional information about Lilly is available at www.lilly.com. C-LLY

This press release contains forward-looking statements about the benefits of a
merger between Lilly and Avid and the potential of Avid’s product pipeline. It
reflects Lilly’s and Avid’s current beliefs; however, as with any such
undertaking, there are substantial risks and uncertainties in the process of
implementing the transaction and in drug development. There is no guarantee
Lilly will realize the expected benefits of the transaction, that florbetapir
will be approved by the FDA on the anticipated timeline or at all, that
florbetapir will be commercially successful, or that Avid’s pipeline will yield
commercially successful diagnostic radiopharmaceutical products. For further
discussion of these and other risks and uncertainties, please see Lilly’s latest
Forms 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. The
companies undertake no duty to update forward-looking statements.

SOURCE Eli Lilly and Company