eli lilly, bio-medicines rob brown for personal use only

1Acrux Investment Community Presentation, August 23, 2011.Not for promotional use. Copyright © 2011 Eli Lilly and Company

Eli Lilly, Bio-MedicinesRob Brown

Chief Marketing Officer, Eli Lilly and CompanySenior Vice President, Eli Lilly Bio-Medicines

Report to Acrux Investment Community

Eli Lilly and CompanyAugust 23, 2011

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Safe Harbor Provision

This presentation contains forward-looking statements that are based onmanagement’s current expectations, but actual results may differ materially dueto various factors. The company’s results may be affected by such factors asthe risks and uncertainties in pharmaceutical research and development;competitive developments; regulatory actions; litigation and investigations;business development transactions; economic conditions; and change in lawsand regulations, including health care reform. For additional information aboutthe factors that affect the company’s business, please see the company’s latestForms 10-K and 10-Q filed with the Securities and Exchange Commission.

The company undertakes no duty to update forward –looking statements.

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Axiron• Lilly is committed to men’s health and is well

positioned to appropriately support the global launch and growth of Axiron

• Cialis and Axiron are synergistic products for men’s health sales forces around the globe to promote

• The testosterone therapy market is over $1.5 billion US dollars and grew at approximately 26% in 2010

• Axiron is in a unique position to take advantage of the growing testosterone therapy market in the US

• Strong launch performance in the US marketFor

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U.S. & Puerto Rico,

$1,937

Europe, $828

Japan, $248CA, AU, NZ,

$150

Zyprexa, $1,153

Cymbalta, $873

Other, $657

Cialis, $343Evista, $250Forteo, $197

BioMedicines

54%Diabetes

16%

Oncology15%

Emerging Markets

10%

Animal Health

5%

Bio-Medicines Business PerformanceStrong execution

• Strong financial performance• Volume driven sales growth in Q1 2011 and in 2010

– 11% sales growth, excluding Zyprexa (8% inclusive of Zyprexa)

• Poised to capitalize on recent launches and longer patent life assets • Leverage growth in Japan – a key countercyclical growth driver

Q1 Lilly Bio-Medicines Revenue*100% = $3.2 billion USD

Q1 Total Lilly Revenue100% = $5.8 billion USD

* Lilly sells the products listed in other countries and other products in the countries listed

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Lilly Bio-Medicines NME Pipeline(as of June 16, 2011)

Priority #1 – Deliver the pipelineNew Chemical Entity (NCE)New Biotech Entity (NBE)

* In collaboration with Incyte** In collaboration with Daiichi Sankyo*** In the US only

Evacetrapibatherosclerosis

AMPAagitation in Alz’s

Sclerostin MAbosteoporosis

IL-17 MAbRA/Psoriasis

OpRAalcohol depend

JAK1/JAK2*RA

SARM/Tadalafilerectile dys

mGlu2 PotCysmigraine prev

CB-2osteoarthritis

SolanezumabAlzheimer’sBAFF MAbRA/Lupus

NERIdepression

mGlu2/3 proschizophrenia

LiprotamaseEPI

Florbetapir-amyloid imaging

Prasugral **ACS Med Mgmt

Tadalafil ***BPH/ED

ER betaBPH

DuloxetinePeds

• Prioritized investments in Neuroscience & Autoimmune• Opportunistic investments in Cardiovascular, Urology, Bone, Muscle &

Joint• Significant contributor to Lilly’s Phase 3 NME goals (10 NMEs by 2011)• Expect significant Phase 3 disclosures starting in 2012• Expect 50% of revenue to come from biologics by the end of this decade

Phase 2 Phase 3 Reg Review

Line Extensions

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Lilly is committed to Men’s Health

Note (s): Axiron is not approved in Australia.

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US Market UnderstandingPerformance Measures

• TRx = Total Prescriptions = NPA measure representing the total (new + refill) prescriptions dispensed by the pharmacist.

• NRx = New Prescriptions = NPA measure representing the new prescriptions dispensed by the pharmacist .

• NTBRx = New To Brand = The volume of Rxs that are associated with first-time use of a product. It reports prescriptions for patients that are starting therapy with a product for the first time within 12 month. More specifically, it includes:

– New to Therapy: This is the first prescription dispensed for the patient during a 12 month period.

– Switch to Therapy: The patient is new to the product but has previously taken at least one other product in the therapy class during the past 12 months.

Note (s): NPA = National Prescription Audit. It’s standardized (syndicated) national prescription data. No vouchers are removed, and scripts do not need to be normalized.

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US Market UnderstandingPayer Environment

Note: Most payers wait about 9-12 months post launch to review & add new products.For

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Testosterone Market Topical therapy makes up the majority of global market

Global Market$1.5 billion USD

Male Hormone Replacement Therapy Market

2010

US Market$1.3 billion USD

OUS Market$0.2 billion USD

• 85% of market is in the US• In 2001, US testosterone sales were approximately $0.2 billion USD

Source: IMS data

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Testosterone Market is GrowingGlobal 5 year CAGR = 17.4%

US Market 2005 - 2010

• 5 Year CAGR = 19.3%• Topical therapies driving market growth • Androgel has majority of $ SOM

OUS Market2005 - 2010

• 5 Year CAGR = 8.8%• Long term injections and topical therapies driving

market growth

Source: IMS data Note (s): The products referred to have regulatory approval in the US and some are not approved in Australia.

-

50,000

100,000

150,000

200,000

250,000

2005 2006 2007 2008 2009 2010

USD

GEL ORAL PATCH INJ: LONG INJ: SHORT

12%

1%14%10%

20%

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2005 2006 2007 2008 2009 2010

USD

ANDROGEL TESTIM ANDRODERM INJECTIONS OTHER

1520%

29%

29%

21%

Male Hormone Replacement Therapy Market

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Market Changing Rapidly3 new products in US testosterone market in short period

• 3 new products launched in US

• Fortesta (Feb 2011) • Axiron (April 2011)• Androgel 1.62% (May 2011)

• The low testosterone market is rapidly changing…

….for Patients… for Providers… for Payers

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US Axiron LaunchTestosterone market - $1.5 billion USD/year and growing

• Launched to US specialists in April 2011 and primary care in June 2011 with a strategy focusing on:

• Articulating the right patient to health care providers

• Removing barriers to trial• Patient support

• Market research with US health care providers suggests our launch approach is successful

• Regulatory actions expected in select EU countries, Canada and AustraliaF

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Axiron – Strong Initial US Uptake Early uptake with specialists is a leading indicator

US Male Hormone Replacement Therapy Market

Source: IMS dataNote (s):* The products referred to have regulatory approval in the US and some are not approved in Australia.* NTB – new-to-brand.

28.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Urologists / EndocrinologistsNTBRx - SOM (%)

ANDRODERM ANDROGEL - TOTAL ANDROGEL 1%

ANDROGEL 1.62% AXIRON FORTESTA

TESTIM

21.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Primary Care PhysiciansNTBRx - SOM (%)

ANDRODERM ANDROGEL - TOTAL ANDROGEL 1%

ANDROGEL 1.62% AXIRON FORTESTA

TESTIMFor

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US Axiron Business = New+SwitchThe majority of the business is new patients


Source: IMS dataNote (s):* The products referred to have regulatory approval in the US and some are not approved in Australia.

1,954

0

500

1,000

1,500

2,000

2,500

# of

pre

scrip

tions

Switch to Axiron fromTESTIM

Switch to Axiron fromINJECTABLES

Switch to Axiron fromFORTESTA

Switch to Axiron fromBULKTESTOSTERONESwitch to Axiron fromANDROGEL 1%

Switch to Axiron fromANDROGEL 1.62%

Switch to Axiron fromANDRODERM

Switch to Axiron fromALL OTHER TOPICALS

Switch to Axiron fromALL ORALS

New Therapy Starts

Source of Axiron NBTRx

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Market TRx / NRx SOM by SpecialtyEarly uptake with specialists is a leading indicator

Source: IMS data


5.4%

8.4%

4.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Axiron TRx SOM by Specialty (%)

PCP URO/ENDO ALL OTHER

8.3%

11.4%

6.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Axiron NRx SOM by Specialty (%)

PCP URO/ENDO ALL OTHER

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US Market TRx SOM by ProductAxiron = 6.1%


Source: IMS dataNote (s):* The products referred to have regulatory approval in the US and some are not approved in Australia.

65.9%

58.9%

6.1%

19.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

TRx SOM by Product (%)

ANDRODERM ANDROGEL TOTAL ANDROGEL 1.62% ANDROGEL 1%

AXIRON FORTESTA TESTIMFor

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