Lilly Provides Update on 2011 Financial Guidance Due to Xigris Withdrawal

INDIANAPOLIS, Oct. 25, 2011 /PRNewswire/ — Eli Lilly and Company (NYSE:LLY) has
updated its full-year 2011 financial guidance as a result of the announced
withdrawal of the company’s Xigris® product.

Lilly expects to incur a charge in the fourth quarter of 2011 for asset
impairments and contractual commitments related to Xigris. The exact amount of
the charge has not yet been determined, but is estimated to be in the range of
$75.0 million to $95.0 million (pre-tax), or approximately $.05 per share (after
tax).

Lilly’s full-year 2011 earnings per share guidance on a non-GAAP basis remains
unchanged at $4.30 to $4.35. On a reported basis, including the Xigris asset
impairment charge, Lilly now expects its full-year 2011 earnings per share to be
in the range of $3.84 to $3.89. See the reconciliation below for further detail.

2011 Earnings Per Share Expectations:

2011
Expectations 2010
———— —-
Results % Growth
——- ——–
Earnings per share (reported) $3.84 to $3.89 $4.58 (15)% to (16)%
In-process research and
development charges
associated with
Boehringer Ingelheim
collaboration (2011) and
Acrux
licensing agreement (2010)
.23 .03
Asset impairments and
restructuring charges:
Year-to-date charges .18 .13
Estimated Xigris charge .05 -
Earnings per share (non-GAAP) $4.30 to $4.35 $4.74 (8)% to (9)%
————– —–

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 that are based on
management’s current expectations, but 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. Pharmaceutical products can develop unexpected safety or efficacy
concerns. The company’s results may also be affected by such factors as
competitive developments affecting current products; market uptake of
recently-launched products; the timing of anticipated regulatory approvals and
launches of new products; regulatory actions regarding currently marketed
products; issues with product supply; regulatory changes or other developments;
regulatory compliance problems or government investigations; patent disputes;
changes in patent law or regulations related to data-package exclusivity; other
litigation involving current or future products; the impact of governmental
actions regarding pricing, importation, and reimbursement for pharmaceuticals,
including U.S. health care reform; changes in tax law; asset impairments and
restructuring charges; acquisitions and business development transactions; and
the impact of exchange rates and global macroeconomic conditions. For additional
information about the factors that affect the company’s business, please see the
company’s latest Form 10-Q and Form 10-K filed with the U.S. Securities and
Exchange Commission. The company undertakes no duty to update forward-looking
statements.