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180
LLY
2016
(2) Continued approval for this indication may be contingent on verification and description of clinical benefit in a confirmatory Phase III trial.
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181
LLY
2016
(3) As part of a conditional marketing authorization, results from an ongoing Phase III study will need to be provided. This study is fully enrolled. Until availability of the full data, the Committee for Medicinal Products for Human Use will review the benefits and risks of Lartruvo annually to determine whether the ...
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182
LLY
2016
There are many difficulties and uncertainties inherent in pharmaceutical research and development and the introduction of new products. A high rate of failure is inherent in new drug discovery and development. The process to bring a drug from the discovery phase to regulatory approval can take over a decade and cost mo...
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183
LLY
2016
We manage research and development spending across our portfolio of molecules, and a delay in, or termination of, any one project will not necessarily cause a significant change in our total research and development spending. Due to the risks and uncertainties involved in the research and development process, we cannot...
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184
LLY
2016
We depend on patents or other forms of intellectual-property protection for most of our revenues, cash flows, and earnings. The loss of U.S. patent exclusivity for Evista® in March 2014 resulted in the immediate entry of generic competitors. We lost our data package protection for Cymbalta® in major European countries ...
[-0.012024123221635818, -0.029972393065690994, 0.04390360414981842, -0.03148724511265755, -0.01721789501607418, 0.03605884686112404, -0.00808145571500063, 0.0012756187934428453, -0.0048421104438602924, -0.02316909283399582, 0.004980746190994978, 0.023926518857479095, 0.001249413238838315, 0.009068813174962997, -0.02015...
185
LLY
2016
Additionally, as described in Note 15 to the consolidated financial statements, the Alimta® vitamin regimen patents, which provide us with patent protection for Alimta through June 2021 in Japan and major European countries, and through May 2022 in the U.S., have been challenged in each of these jurisdictions. Our vita...
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186
LLY
2016
We will lose our patent protection for Strattera® in the U.S. in May 2017, and Cialis® in the U.S. and major European markets in November 2017. We will also lose exclusivity for Effient® in the U.S. in October 2017, and we have authorized one generic manufacturer to enter the market as early as mid-August 2017. We expe...
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187
LLY
2016
The compound patent for Humalog® (insulin lispro) has expired in major markets. Thus far, the loss of compound patent protection for Humalog has not resulted in a rapid and severe decline in revenue. Global regulators have different legal pathways to approve similar versions of insulin lispro and to date none have been...
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188
LLY
2016
As a global company with substantial operations outside the U.S., we face foreign currency risk exposure from fluctuating currency exchange rates, primarily the U.S. dollar against the euro, Japanese yen, and British pound; and the British pound and Swiss franc against the euro. While we manage a portion of these expos...
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189
LLY
2016
The impact of the Venezuelan financial crisis, including the significant deterioration of the bolívar, resulted in a charge of $203.9 million in 2016. See Note 17 to the consolidated financial statements for additional information related to the charge. As of December 31, 2016, our Venezuelan subsidiaries represented a...
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190
LLY
2016
In the U.S., public concern over access to and affordability of pharmaceuticals continues to drive the regulatory and legislative debate. These policy and political issues increase the risk that taxes, fees, rebates, or other federal and state measures may be enacted. Key health policy proposals affecting biopharmaceut...
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191
LLY
2016
In the private sector, consolidation and integration among healthcare providers is also a major factor in the competitive marketplace for human pharmaceuticals. Health plans, pharmaceutical benefit managers, wholesalers, and other supply chain stakeholders have been consolidating into fewer, larger entities, thus enhan...
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192
LLY
2016
The main coverage expansion provisions of the Affordable Care Act (ACA) are currently in effect through both state-based exchanges and the expansion of Medicaid. An emerging trend has been the prevalence of benefit designs containing high out-of-pocket costs for patients, particularly for pharmaceuticals. In addition t...
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193
LLY
2016
International operations also are generally subject to extensive price and market regulations. Cost-containment measures exist in a number of countries, including additional price controls and mechanisms to limit reimbursement for our products. Such policies are expected to increase in impact and reach, given the press...
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194
LLY
2016
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Changes in the relevant tax laws, regulations, administrative practices, principles, and interpretations could adversely affect our future effective tax rates. The U.S. and a number of other countries are actively considering or enacting cha...
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195
LLY
2016
•Our agreement to purchase CoLucid Pharmaceuticals, Inc. (CoLucid) for $46.50 per share or approximately $960 million, which we expect to complete in the first quarter of 2017.
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196
LLY
2016
•Our acquisition of Boehringer Ingelheim Vetmedica, Inc.'s U.S. feline, canine, and rabies vaccine portfolio, completed on January 3, 2017, in an all-cash transaction for approximately $885 million.
[-0.00833278801292181, -0.007414264604449272, -0.004410892724990845, -0.03021213784813881, -0.03150732070207596, 0.007440696936100721, -0.008623543195426464, -0.01706206053495407, 0.004291947465389967, 0.0025754987727850676, 0.013520129956305027, 0.02072293683886528, -0.002177362097427249, -0.012760200537741184, 0.0104...
197
LLY
2016
•Our acquisition of Novartis AH, completed on January 1, 2015, in an all-cash transaction for $5.28 billion.
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198
LLY
2016
Numbers may not add due to rounding.
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199
LLY
2016
(1) U.S. revenue includes revenue in Puerto Rico.
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200
LLY
2016
Numbers may not add due to rounding.
[-0.008075804449617863, -0.00823888648301363, 0.02841535024344921, -0.017847659066319466, -0.01766500622034073, -0.003812849521636963, -0.033007729798555374, -0.025466833263635635, -0.016451679170131683, -0.026614928618073463, 0.009015155024826527, 0.024931926280260086, -0.02155287377536297, 0.0033692673314362764, -0.0...
201
LLY
2016
In the U.S., the volume increase in 2016 was driven by sales of several pharmaceutical products, including Trulicity®, Humalog, Erbitux® (due to the transfer of commercialization rights to us in the U.S. and Canada effective October 1, 2015), Taltz, and Jardiance®, partially offset by decreased volume for Zyprexa. U.S....
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202
LLY
2016
Outside the U.S., the volume increase in 2016 was driven by sales of several new pharmaceutical products, including Cyramza and Trulicity, partially offset by the losses of exclusivity for Cymbalta in Europe and Canada, Zyprexa in Japan, as well as Alimta in several countries.
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203
LLY
2016
Numbers may not add due to rounding.
[-0.00807367917150259, -0.008230196312069893, 0.028460044413805008, -0.017790788784623146, -0.017621228471398354, -0.0037694559432566166, -0.03305121511220932, -0.025486217811703682, -0.01644734852015972, -0.02667314000427723, 0.00895408820360899, 0.02506883814930916, -0.021586330607533455, 0.003342294367030263, -0.011...
204
LLY
2016
(1) U.S. revenue includes revenue in Puerto Rico.
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205
LLY
2016
(2) Trajenta revenue includes Jentadueto®.
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206
LLY
2016
Revenue of Humalog, our injectable human insulin analog for the treatment of diabetes, decreased 5 percent in the U.S., driven by lower realized prices, partially offset by increased demand. Revenue outside the U.S. increased 1 percent, driven by increased volume and, to a lesser extent, higher realized prices, partial...
[-0.02671036496758461, -0.020591916516423225, 0.01814967952668667, 0.005408270284533501, 0.021645935252308846, -0.008239337243139744, -0.01041807048022747, -0.016722898930311203, -0.036067988723516464, -0.028304245322942734, 0.003166874870657921, 0.023972487077116966, -0.007943698205053806, -0.01709566079080105, -0.004...
207
LLY
2016
Revenue of Cialis, a treatment for erectile dysfunction and benign prostatic hyperplasia, increased 17 percent in the U.S., driven by higher realized prices. We will lose our patent protection for Cialis in the U.S. in November 2017. We expect that the entry of generic competition following the loss of exclusivity will...
[-0.01014853734523058, -0.02137422189116478, 0.02321705035865307, -0.0058139958418905735, 0.011173773556947708, 0.018013006076216698, -0.0066835000179708, -0.001674119383096695, -0.029329532757401466, -0.021555909886956215, 0.00204884959384799, 0.0361817441880703, 0.009739740751683712, -0.0014713433338329196, 0.0052332...
208
LLY
2016
Revenue of Alimta, a treatment for various cancers, decreased 5 percent in the U.S., driven by decreased demand due to competitive pressure. Revenue outside the U.S. decreased 11 percent, driven primarily by the loss of exclusivity in several countries. We have faced and remain exposed to generic entry in multiple coun...
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209
LLY
2016
Revenue of Forteo, an injectable treatment for osteoporosis in postmenopausal women and men at high risk for fracture and for glucocorticoid-induced osteoporosis in men and postmenopausal women, increased 26 percent in the U.S., driven by higher realized prices. Revenue outside the U.S. decreased 1 percent, driven by l...
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210
LLY
2016
Revenue of Humulin, an injectable human insulin for the treatment of diabetes, increased 13 percent in the U.S., driven by increased demand and, to a lesser extent, higher realized prices. The increase in realized prices resulted from a change in estimate of a government rebate in the first quarter of 2016. Revenue out...
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211
LLY
2016
Revenue of Cymbalta, a product for the treatment of major depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, chronic musculoskeletal pain, and the management of fibromyalgia, was $269.3 million in the U.S. in 2016, compared to $144.6 million in 2015. U.S. revenue benefited from red...
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212
LLY
2016
Revenue of Trulicity, a treatment for type 2 diabetes, was $737.6 million in the U.S., driven by growth in the GLP-1 market and increased share of market for Trulicity. Revenue outside the U.S. was $187.9 million.
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213
LLY
2016
Revenue of Strattera, a treatment for attention-deficit hyperactivity disorder, increased 7 percent in the U.S., driven by higher realized prices, partially offset by decreased volume. We will lose our patent protection for Strattera in the U.S. in May 2017. We expect that the entry of generic competition following the...
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214
LLY
2016
Revenue of Zyprexa, a treatment for schizophrenia, acute mixed or manic episodes associated with bipolar I disorder, and bipolar maintenance, decreased 16 percent outside the U.S., driven primarily by decreased volumes in Japan due to the entry of generic competition in June 2016 following the loss of patent exclusivit...
[-0.0015244813403114676, -0.009636870585381985, 0.04141249880194664, -0.013276742771267891, -0.0011183327296748757, 0.014181827194988728, 0.00933083426207304, -0.0094350166618824, 0.0034933655988425016, -0.02948361448943615, -0.005160283762961626, 0.022151779383420944, -0.0009742680704221129, -0.00664488272741437, -0.0...
215
LLY
2016
Revenue of Erbitux, a treatment for various cancers, increased to $581.1 million in the U.S. in 2016, compared to $386.7 million in 2015. The increase was due to the transfer of commercialization rights to us in the U.S. and Canada which occurred on October 1, 2015.
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216
LLY
2016
Revenue of animal health products in the U.S. increased 1 percent, primarily due to uptake of new companion animal products, partially offset by decreased revenue for food animal products. Animal health product revenue outside the U.S. decreased 3 percent driven by the unfavorable impact of foreign exchange rates.
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217
LLY
2016
Gross margin as a percent of total revenue was 73.4 percent in 2016, a decrease of 1.4 percentage points compared with 2015 primarily due to a lower benefit from foreign exchange rates on international inventories sold.
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218
LLY
2016
Research and development expense increased 9 percent to $5.24 billion in 2016, driven primarily by higher late-stage clinical development costs and, to a lesser extent, higher charges related to development milestone payments.
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219
LLY
2016
Marketing, selling, and administrative expense decreased 1 percent to $6.45 billion in 2016, as reduced spending on late-life-cycle products was largely offset by expenses related to new products.
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220
LLY
2016
We recognized an acquired IPR&D charge of $30.0 million in 2016 associated with the agreement with AstraZeneca to co-develop MEDI1814. There were $535.0 million of acquired IPR&D charges in 2015 resulting from business development activity, primarily a collaboration with Pfizer and the acquisition of worldwide rights t...
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221
LLY
2016
We recognized asset impairment, restructuring, and other special charges of $382.5 million in 2016. The charges are primarily associated with integration and severance costs related to the acquisition of Novartis AH, other global severance costs associated with actions taken to reduce cost structure, and asset impairme...
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222
LLY
2016
Other—net, (income) expense was expense of $84.8 million in 2016, compared with income of $100.6 million in 2015. Other expense in 2016 included a $203.9 million charge related to the impact of the Venezuelan financial crisis, including the significant deterioration of the bolívar, partially offset by net gains of $101...
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223
LLY
2016
Our effective tax rate was 18.9 percent in 2016, compared with 13.7 percent in 2015. The increase in the effective tax rate for 2016 reflects several factors in both years: in 2016, the unfavorable tax effect of the charge related to the impact of the Venezuelan financial crisis and certain asset impairment, restructur...
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224
LLY
2016
(1) Operating expense consists of research and development and marketing, selling, and administrative expense.
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225
LLY
2016
Revenue and gross margin increased slightly in 2015. Operating expense in 2015 remained essentially flat as a decrease in marketing, selling, and administrative expense was largely offset by increased research and development expense. Net income and EPS increased slightly in 2015 as a higher gross margin, lower income ...
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226
LLY
2016
Certain items affect the comparisons of our 2015 and 2014 results. The 2015 highlighted items are summarized in the "Results of Operations—Executive Overview" section. The 2014 highlighted items are summarized as follows:
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227
LLY
2016
•We recognized acquired IPR&D charges of $200.2 million (pretax), or $0.12 per share, related to acquired IPR&D from various collaboration agreements.
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228
LLY
2016
•We recognized income of $92.0 million (pretax), or $0.06 per share, related to the transfer of our linagliptin and empagliflozin commercial rights in certain countries to Boehringer Ingelheim.
[-0.0021922027226537466, -0.03604013845324516, 0.021188577637076378, -0.01769409142434597, 0.00910130888223648, 0.01959780417382717, -0.0066825514659285545, 0.0008475430659018457, -0.005326482467353344, -0.009798902086913586, 0.02889470010995865, 0.0336930975317955, -0.002914244309067726, -0.01508626714348793, -0.00295...
229
LLY
2016
•We recognized charges of $468.7 million (pretax), or $0.38 per share, related to severance costs associated with our ongoing cost containment efforts to reduce our cost structure and global workforce, and asset impairments primarily associated with the closure of a manufacturing site in Puerto Rico.
[-0.010857454501092434, -0.0010268756886944175, 0.012095057405531406, -0.0363386906683445, 0.002003578469157219, -0.001437458791770041, -0.002838124055415392, 0.011967952363193035, -0.0025437751319259405, -0.00387336197309196, 0.0004958772915415466, 0.046640895307064056, 0.016322975978255272, -0.0009800475090742111, 0....
230
LLY
2016
•We recognized a marketing, selling, and administrative expense of $119.0 million (non-tax deductible), or $0.11 per share, for an extra year of the U.S. Branded Prescription Drug Fee (U.S. Drug Fee) due to final regulations issued by the Internal Revenue Service which required us to accelerate into 2014 the recording ...
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231
LLY
2016
Numbers may not add due to rounding.
[-0.008122851140797138, -0.008246813900768757, 0.028420191258192062, -0.0178376492112875, -0.017668016254901886, -0.003810236928984523, -0.03303945064544678, -0.02540592849254608, -0.01646753028035164, -0.02672385238111019, 0.008971019648015499, 0.025014465674757957, -0.021517399698495865, 0.003350268118083477, -0.0113...
232
LLY
2016
(1) U.S. revenue includes revenue in Puerto Rico.
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233
LLY
2016
Numbers may not add due to rounding.
[-0.008122851140797138, -0.008246813900768757, 0.028420191258192062, -0.0178376492112875, -0.017668016254901886, -0.003810236928984523, -0.03303945064544678, -0.02540592849254608, -0.01646753028035164, -0.02672385238111019, 0.008971019648015499, 0.025014465674757957, -0.021517399698495865, 0.003350268118083477, -0.0113...
234
LLY
2016
In the U.S., the volume increase in 2015 was driven by the inclusion of revenue from Novartis AH and increased volumes for several pharmaceutical products, partially offset by the residual impact of the loss of exclusivity for Cymbalta and Evista.
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235
LLY
2016
Outside the U.S., the volume increase in 2015 was driven by the inclusion of revenue from Novartis AH and increased volumes for several pharmaceutical products. On a pro forma basis, which reflects the 2014 revenue of Novartis AH as described in Note 3 to the consolidated financial statements, our consolidated volume i...
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236
LLY
2016
Numbers may not add due to rounding.
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237
LLY
2016
(1) U.S. revenue includes revenue in Puerto Rico.
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238
LLY
2016
Revenue of Humalog increased 9 percent in the U.S., driven by higher realized prices and, to a lesser extent, increased volume. Revenue outside the U.S. decreased 8 percent, driven by the unfavorable impact of foreign exchange rates, partially offset by higher volume.
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239
LLY
2016
Revenue of Alimta decreased 5 percent in the U.S., driven by decreased demand and, to a lesser extent, lower realized prices. Revenue outside the U.S. decreased 15 percent, driven by the unfavorable impact of foreign exchange rates and, to a lesser extent, lower realized prices, partially offset by increased volume.
[-0.007932592183351517, -0.015650104731321335, 0.011854606680572033, -0.025126200169324875, 0.005674270447343588, 0.019420301541686058, -0.00891309604048729, -0.017408685758709908, -0.023418225347995758, -0.014207815751433372, 0.01686466485261917, 0.02864336222410202, 0.015055477619171143, -0.012588403187692165, -0.001...
240
LLY
2016
Revenue of Cialis increased 21 percent in the U.S., driven by higher realized prices. Revenue outside the U.S. decreased 16 percent, driven by the unfavorable impact of foreign exchange rates.
[-0.0030387539882212877, -0.010963097214698792, 0.029523875564336777, -0.005204284097999334, 0.01635541208088398, -0.0002754717133939266, -0.010510550811886787, -0.000989546999335289, -0.032685328274965286, -0.024450257420539856, -0.0019073877483606339, 0.02982982248067856, 0.007259864825755358, -0.008324305526912212, ...
241
LLY
2016
Revenue of Forteo increased 14 percent in the U.S., driven by higher realized prices, partially offset by decreased volume. Revenue outside the U.S. decreased 6 percent, driven by the unfavorable impact of foreign exchange rates, partially offset by increased volume.
[-0.004435861483216286, -0.02131253108382225, -0.003409750061109662, -0.03339643031358719, 7.297626893887355e-07, 0.0013025563675910234, -0.024856122210621834, -0.004346634726971388, -0.030362708494067192, -0.013651746325194836, 0.014046895317733288, 0.018673958256840706, 0.009967941790819168, -0.014888179488480091, 0....
242
LLY
2016
Revenue of Humulin increased 7 percent in the U.S., driven by higher realized prices and, to a lesser extent, wholesaler buying patterns, partially offset by decreased demand. Revenue outside the U.S. decreased 21 percent, driven by decreased volume, primarily due to the loss of a government contract in Brazil, and the...
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243
LLY
2016
Revenue of Cymbalta decreased 66 percent in the U.S. due to the loss of U.S. patent exclusivity in December 2013. Revenue outside the U.S. decreased 26 percent, driven by the unfavorable impact of foreign exchange rates and the loss of exclusivity in Europe in 2014.
[-0.007784778717905283, -0.019439522176980972, 0.03331757336854935, -0.02419368363916874, -0.009002151899039745, 0.012045583687722683, 0.0030514411628246307, -0.009059816598892212, -0.007823222316801548, -0.01298103854060173, 0.014275298453867435, 0.03347134590148926, 0.0021512259263545275, 0.006740401033312082, -0.004...
244
LLY
2016
Revenue of Zyprexa increased 31 percent in the U.S., driven by adjustments to the return reserve resulting from the expiration of the period to return expired product for credit. Revenue outside the U.S. decreased 15 percent, driven primarily by the unfavorable impact of foreign exchange rates. We lost patent exclusivi...
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245
LLY
2016
$466.2 million in 2014. The revenue decrease in Japan was due to the unfavorable impact of foreign exchange rates.
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246
LLY
2016
Revenue of Strattera increased 11 percent in the U.S., driven by higher realized prices and, to a lesser extent, increased demand. Revenue outside the U.S. decreased 1 percent, driven by the unfavorable impact of foreign exchange rates, largely offset by increased volume.
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247
LLY
2016
Revenue of Effient, a product for the reduction of thrombotic cardiovascular events (including stent thrombosis) in patients with acute coronary syndrome who are managed with an artery-opening procedure known as percutaneous coronary intervention, including patients undergoing angioplasty, atherectomy, or stent placeme...
[-0.02951524779200554, -0.010715726763010025, -0.021283742040395737, 0.00016523015801794827, 0.02261313796043396, 0.01013831328600645, 0.005975561682134867, -0.013777363114058971, -0.034322552382946014, -0.013502084650099277, 0.01201155036687851, 0.018248962238430977, -0.013804219663143158, -0.008312073536217213, -0.01...
248
LLY
2016
Revenue of Evista, a product for the prevention and treatment of osteoporosis in postmenopausal women and for reduction of risk of invasive breast cancer in postmenopausal women with osteoporosis and postmenopausal women at high risk for invasive breast cancer, decreased 70 percent in the U.S., due to the loss of paten...
[-0.018689922988414764, -0.038311753422021866, 0.0008356428006663918, -0.0035949628800153732, 0.011512940749526024, 0.016360154375433922, -0.020010126754641533, -0.008341866545379162, -0.013422057032585144, -0.021382100880146027, 0.0069051762111485004, 0.00629037618637085, 0.00884017813950777, -0.005484664347022772, -0...
249
LLY
2016
Revenue of animal health products in the U.S. increased 21 percent and animal health product revenue outside the U.S. increased 53 percent. The increases were driven by the inclusion of revenue from Novartis AH.
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250
LLY
2016
On a pro forma basis, which reflects the 2014 revenue of Novartis AH as described in Note 3 to the consolidated financial statements, revenue of animal health products in the U.S. would have decreased 1 percent, driven primarily by decreased volume in food animal products. Revenue outside the U.S. would have decreased ...
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251
LLY
2016
Gross margin as a percent of total revenue was 74.8 percent in 2015, essentially flat compared with 2014 as the unfavorable impacts of the inclusion of Novartis AH and inventory step-up and amortization costs were offset by the favorable impact of foreign exchange rates on international inventories sold.
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252
LLY
2016
Research and development expense increased 1 percent to $4.80 billion in 2015, driven primarily by higher late-stage clinical development costs, the inclusion of Novartis AH, and an increase in charges associated with the termination of late-stage molecules, primarily evacetrapib and basal insulin peglispro, of approxi...
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253
LLY
2016
Marketing, selling, and administrative expense decreased 1 percent to $6.53 billion in 2015, due to the favorable impact of foreign exchange rates and a 2014 charge associated with the U.S. Drug Fee, partially offset by the inclusion of Novartis AH and expenses related to new product launches.
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254
LLY
2016
We recognized acquired IPR&D charges of $535.0 million in 2015 resulting from various collaboration agreements, primarily with Pfizer, as well as the consideration paid to acquire the worldwide rights to Locemia's intranasal glucagon. There were $200.2 million of acquired IPR&D charges in 2014 related to various collab...
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255
LLY
2016
We recognized asset impairment, restructuring, and other special charges of $367.7 million in 2015. The charges relate to severance costs, integration costs for Novartis AH, and asset impairments. In 2014, we recognized charges of $468.7 million for asset impairment, restructuring, and other special charges. The charge...
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256
LLY
2016
Other—net, (income) expense was income of $100.6 million in 2015, compared with income of $340.5 million in 2014. Other income in 2015 included net gains of $236.7 million on investments, partially offset by a net charge of $152.7 million related to the repurchase of $1.65 billion of debt. Other income in 2014 included...
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257
LLY
2016
gains of $216.4 million on investments and $92.0 million of income associated with the transfer of commercial rights to linagliptin and empagliflozin in certain countries from us to Boehringer Ingelheim. See Notes 4 and 17 to the consolidated financial statements for additional information.
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258
LLY
2016
Our 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 $119.0 million nondeductible charge associated with the U.S. Drug Fee. The decrease in the tax rate for 2015 compared with 2014 is primarily due to a favorable tax impact of the ...
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259
LLY
2016
As of December 31, 2016, cash and cash equivalents was $4.58 billion, an increase of $915.7 million, compared with $3.67 billion at December 31, 2015. Refer to the Consolidated Statements of Cash Flows for additional details on the significant sources and uses of cash for the years ended December 31, 2016 and December ...
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260
LLY
2016
In addition to our cash and cash equivalents, we held total investments of $6.66 billion and $4.43 billion as of December 31, 2016 and December 31, 2015, respectively. See Note 7 to the consolidated financial statements for additional details.
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261
LLY
2016
As of December 31, 2016, total debt was $10.31 billion, an increase of $2.33 billion compared with $7.98 billion at December 31, 2015. This increase is primarily due to the net issuance of $1.30 billion of short-term commercial paper borrowings and the $1.21 billion issuance of Swiss Franc debt. At December 31, 2016, w...
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262
LLY
2016
In January 2017, we completed our acquisition of Boehringer Ingelheim Vetmedica, Inc.'s U.S. feline, canine, and rabies vaccine portfolio in an all-cash transaction for approximately $885 million, including the estimated cost of inventory, which was funded through the issuance of commercial paper. In January 2017, we a...
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263
LLY
2016
For the 131st consecutive year, we distributed dividends to our shareholders. Dividends of $2.04 per share and $2.00 per share were paid in 2016 and 2015, respectively. In the fourth quarter of 2016, effective for the dividend to be paid in the first quarter of 2017, the quarterly dividend was increased to $0.52 per sh...
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264
LLY
2016
Capital expenditures of $1.04 billion during 2016 were $29.2 million less than in 2015. We expect 2017 capital expenditures to be approximately $1.2 billion.
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265
LLY
2016
In 2016, we repurchased $540.1 million of shares under the $5.00 billion share repurchase program previously announced in October 2013. See Note 12 to the consolidated financial statements for additional details.
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266
LLY
2016
See "Results of Operations—Executive Overview—Other Matters" for information regarding recent and upcoming losses of patent protection for Evista (U.S.), Cymbalta (Europe), Alimta (U.S., Europe, and Japan), Zyprexa (Japan), Strattera (U.S.), Effient (U.S.), and Cialis (U.S. and Europe).
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267
LLY
2016
At December 31, 2016, we had an aggregate of $9.77 billion of cash and investments at our foreign subsidiaries. A significant portion of this amount would be subject to tax payments if such cash and investments were repatriated to the U.S. We record U.S. deferred tax liabilities for certain unremitted earnings, but whe...
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268
LLY
2016
Both domestically and abroad, we continue to monitor the potential impacts of the economic environment; the creditworthiness of our wholesalers and other customers, including foreign government-backed agencies and suppliers; the uncertain impact of health care legislation; and various international government funding l...
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269
LLY
2016
In the normal course of business, our operations are exposed to fluctuations in interest rates and currency values. These fluctuations can vary the costs of financing, investing, and operating. We address a portion of these risks through a controlled program of risk management that includes the use of derivative financ...
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270
LLY
2016
Our primary interest rate risk exposure results from changes in short-term U.S. dollar interest rates. In an effort to manage interest rate exposures, we strive to achieve an acceptable balance between fixed and floating rate debt positions and may enter into interest rate derivatives to help maintain that balance. Bas...
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271
LLY
2016
Our foreign currency risk exposure results from fluctuating currency exchange rates, primarily the U.S. dollar against the euro, Japanese yen, and British pound; and the British pound and Swiss franc against the euro. We face foreign currency exchange exposures when we enter into transactions arising from subsidiary tr...
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272
LLY
2016
We have no off-balance sheet arrangements that have a material current effect or that are reasonably likely to have a material future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources. We acquire and coll...
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273
LLY
2016
Individually, these arrangements are not material in any one annual reporting period. However, if milestones for multiple products covered by these arrangements were reached in the same reporting period, the aggregate charge to expense could be material to the results of operations or cash flows in that period. See Not...
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274
LLY
2016
(1) Our long-term debt obligations include both our expected principal and interest obligations and our interest rate swaps. We used the interest rate forward curve at December 31, 2016, to compute the amount of the contractual obligation for interest on the variable rate debt instruments and swaps.
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275
LLY
2016
•Purchase obligations consisting primarily of all open purchase orders as of December 31, 2016. Some of these purchase orders may be cancelable; however, for purposes of this disclosure, we have not distinguished between cancelable and noncancelable purchase obligations.
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276
LLY
2016
•Contractual payment obligations with each of our significant vendors, which are noncancelable and are not contingent.
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277
LLY
2016
(3) We have included long-term liabilities consisting primarily of our nonqualified supplemental pension funding requirements and deferred compensation liabilities. We excluded long-term income taxes payable of $688.9 million, because we cannot reasonably estimate the timing of future cash outflows associated with tho...
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278
LLY
2016
The contractual obligations table is current as of December 31, 2016. We expect the amount of these obligations to change materially over time as new contracts are initiated and existing contracts are completed, terminated, or modified.
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279
LLY
2016
In preparing our financial statements in accordance with accounting principles generally accepted in the U.S., we must often make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. Some of those judgments can be subjective and complex, and con...
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