Eli Lilly and Company announced unaudited earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company's total revenue was $5,957.3 million compared to $6,046.6 million for the same period in 2011. Operating income was $1,064.4 million compared to $1,068.6 million for the same period in 2011. Income before income taxes was $1,012.4 million compared to $1,041.8 million for the same period in 2011. Net income was $827.2 million or $0.74 per diluted share compared to $858.2 million or $0.77 per diluted share for the same period in 2011. Non – GAAP operating income was $1,268.4 million compared to $1,236.2 million for the same period in 2011. Non – GAAP Income before income taxes was $1,216.4 million compared to $1,209.4 million for the same period in 2011. Non – GAAP net income was $945.2 million or $0.85 per diluted share compared to $968.9 million or $0.87 per diluted share for the same period in 2011.

For the year, the company's total revenue was $22,603.4 million compared to $24,286.5 million for the same period in 2011. Operating income was $4,734.2 million compared to $5,528.5 million for the same period in 2011. Income before income taxes was $5,408.2 million compared to $5,349.5 million for the same period in 2011. Net income was $4,088.6 million or $3.66 per diluted share compared to $4,347.7 million or $3.90 per diluted share for the same period in 2011. Non – GAAP operating income was $5,015.3 million compared to $6,317.9 million for the same period in 2011. Non – GAAP Income before income taxes was $4,901.5 million compared to $6,138.9 million for the same period in 2011. Non – GAAP net income was $3,784.0 million or $3.39 per diluted share compared to $4,913.5 million or $4.41 per diluted share for the same period in 2011.

In the fourth quarter of 2012, the company recognized a $204.0 million charge for asset impairments, restructuring and other special charges, comprised primarily of $122.6 million related to an intangible asset impairment for liprotamase and $64.7 million related to restructuring to reduce the company's cost structure and global workforce. In the fourth quarter of 2011, the company recognized a charge of $167.6 million for asset impairments, restructuring and other special charges, including a special charge of $85.0 million related to the withdrawal of Xigris(R) and $82.6 million related to restructuring to reduce the company's cost structure and global workforce.

The company revised earnings guidance for the full year of 2013. The company has revised certain elements of its 2013 financial guidance to reflect an estimated $0.07 per share benefit from the one-time impact associated with the R&D tax credit for 2012 that will be recorded in the first quarter of 2013 resulting from the delay in the enactment of the American Taxpayer Relief Act of 2012. The company now expects full-year 2013 earnings per share to be in the range of $4.10 to $4.25 on a reported basis, or $3.82 to $3.97 on a non-GAAP basis. The company still anticipates 2013 revenue of between $22.6 billion and $23.4 billion. Despite the initial impact of the U.S. Cymbalta patent expiration in the fourth quarter of 2013 and the loss of the anticipated 15% revenue sharing obligation on worldwide exenatide sales, the company expects overall revenue growth, driven by a portfolio of products including Humalog, Humulin, Cialis, Strattera, Forteo, Alimta, Cymbalta outside the U.S., Effient, Tradjenta(R) and Axiron(R), as well as animal health products. The company still anticipates that gross margin as a percent of revenue will be approximately 78%. On a reported basis, other income and deductions is still expected to be in a range between $340 million and $490 million of net income in 2013. On a non-GAAP basis, other income and deductions is still expected to be in a range between $0 and $150 million of net expense, which excludes an estimated $490 million of deferred exenatide-related income contingent upon the transfer of exenatide commercial rights outside the U.S. to Amylin, which is expected to be largely complete by the end of the first quarter of 2013. On a reported basis, the 2013 tax rate is now expected to be approximately 21.0%, assuming a full-year 2013 benefit of the R&D tax credit. On a non-GAAP basis, the 2013 tax rate is now expected to be approximately 19.5%. Both tax rates for 2013 include an estimated $0.07 per share one-time impact associated with the R&D tax credit for 2012 that will be recorded in 2013 resulting from the delay in the enactment of the American Taxpayer Relief Act of 2012. Operating cash flows are still expected to be more than sufficient to allow for capital expenditures of approximately $900 million, fund potential business development activity, pay the company's dividend, and complete the company's previously announced $1.5 billion share repurchase program.