Eli Lilly and Company

United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-K 
Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the fiscal year ended December 31, 2024
Commission file number 001-06351
ELI LILLY AND COMPANY 
(Exact name of Registrant as specified in its charter)
Indiana
 
35-0470950
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
Lilly Corporate Center, Indianapolis, Indiana 46285
(Address and zip code of principal executive offices)
Registrant's telephone number, including area code (317) 276-2000 
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange On Which Registered
Common Stock (no par value)
LLY
New York Stock Exchange
7 1/8% Notes due 2025
LLY25
New York Stock Exchange
1.625% Notes due 2026
LLY26
New York Stock Exchange
2.125% Notes due 2030
LLY30
New York Stock Exchange
0.625% Notes due 2031
LLY31
New York Stock Exchange
0.500% Notes due 2033
LLY33
New York Stock Exchange
6.77% Notes due 2036
LLY36
New York Stock Exchange
1.625% Notes due 2043
LLY43
New York Stock Exchange
1.700% Notes due 2049
LLY49A
New York Stock Exchange
1.125% Notes due 2051
LLY51
New York Stock Exchange
1.375% Notes due 2061
LLY61
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Exchange Act: None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No  ☐
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes  ☐ No  ☒
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 
months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 
days. Yes ☒ No  ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of 
Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). 
Yes ☒ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an 
emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in 
Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒
Accelerated filer
☐
Non-accelerated filer ☐
Smaller reporting company
☐
 
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or 
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the Registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control 
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued 
its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing 
reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received 
by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes  ☐ No ☒
Aggregate market value of the common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the 
last business day of the Registrant's most recently completed second fiscal quarter: approximately $769,792,000,000.
Number of shares of common stock outstanding as of February 14, 2025: 948,169,999
Portions of the Registrant's Proxy Statement for the 2025 Annual Meeting of Shareholders have been incorporated by reference into Part III of this Annual 
Report on Form 10-K.


Eli Lilly and Company
Form 10-K
For the Year Ended December 31, 2024 
Table of Contents
Page
Part I
Item 1.
Business
5
Item 1A.
Risk Factors
24
Item 1B.
Unresolved Staff Comments
37
Item 1C.
Cybersecurity
37
Item 2.
Properties
38
Item 3.
Legal Proceedings
38
Item 4.
Mine Safety Disclosures
38
Part II
Item 5.
Market for the Registrant's Common Equity, Related Stockholder Matters, and 
Issuer Purchases of Equity Securities
39
Item 6.
[Reserved]
41
Item 7.
Management's Discussion and Analysis of Results of Operations and Financial 
Condition
41
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
57
Item 8.
Financial Statements and Supplementary Data
58
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial 
Disclosure
114
Item 9A.
Controls and Procedures
114
Item 9B.
Other Information
114
Item 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
114
Part III
Item 10.
Directors, Executive Officers, and Corporate Governance
115
Item 11.
Executive Compensation
115
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related 
Stockholder Matters
116
Item 13.
Certain Relationships and Related Transactions, and Director Independence
116
Item 14.
Principal Accountant Fees and Services
116
Item 15.
Exhibits and Financial Statement Schedules
117
Item 16.
Form 10-K Summary
118
2

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Forward-Looking Statements
This Annual Report on Form 10-K and our other publicly available documents include forward-looking 
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities 
Exchange Act of 1934 (Exchange Act), and are subject to the safe harbor created thereby under the Private 
Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate 
solely to historical or current facts, and generally can be identified by the use of words such as "may," "could," 
"aim," "seek," "believe," "will," "expect," "project," "estimate," "intend," "target," "anticipate," "plan," "continue," 
or similar expressions or future or conditional verbs. 
Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to 
differ from those expressed in forward-looking statements. Forward-looking statements are based on 
management's current plans and expectations, expressed in good faith and believed to have a reasonable 
basis. However, we can give no assurance that any expectation or belief will result or will be achieved or 
accomplished. Investors therefore should not place undue reliance on forward-looking statements. The 
following include some but not all of the factors that could cause actual results or events to differ from those 
anticipated:
•
the significant costs and uncertainties in the pharmaceutical research and development process, including 
with respect to the timing and process of obtaining regulatory approvals;
•
the impact and uncertain outcome of acquisitions and business development transactions and related 
costs;
•
intense competition affecting our products, pipeline, or industry;
•
market uptake of launched products and indications;
•
continued pricing pressures and the impact of actions of governmental and private payers affecting 
pricing of, reimbursement for, and patient access to pharmaceuticals, or reporting obligations related 
thereto;
•
safety or efficacy concerns associated with our or competitive products;
•
dependence on relatively few products or product classes for a significant percentage of our total revenue 
and a consolidated supply chain;
•
the expiration of intellectual property protection for certain of our products and competition from generic 
and biosimilar products;
•
our ability to protect and enforce patents and other intellectual property and changes in patent law or 
regulations related to data package exclusivity;
•
information technology system inadequacies, inadequate controls or procedures, security breaches, or 
operating failures;
•
unauthorized access, disclosure, misappropriation, or compromise of confidential information or other 
data stored in our information technology systems, networks, and facilities, or those of third parties with 
whom we share our data and violations of data protection laws or regulations;
•
issues with product supply and regulatory approvals stemming from manufacturing difficulties, disruptions, 
or shortages, including as a result of unpredictability and variability in demand, labor shortages, third-
party performance, quality, cyber-attacks, or regulatory actions related to our and third-party facilities;
•
reliance on third-party relationships and outsourcing arrangements;
•
the use of artificial intelligence or other emerging technologies in various facets of our operations may 
exacerbate competitive, regulatory, litigation, cybersecurity, and other risks;
•
the impact of global macroeconomic conditions, including uneven economic growth or downturns or 
uncertainty, trade disruptions, international tension, conflicts, regional dependencies, or other costs, 
uncertainties, and risks related to engaging in business globally; 
•
devaluations in foreign currency exchange rates, changes in interest rates, and inflation or deflation;
•
significant and sudden declines or volatility in the trading price of our common stock and market 
capitalization;
•
litigation, investigations, or other similar proceedings involving past, current, or future products or 
activities;
•
changes in tax law and regulation, tax rates, or events that differ from our assumptions related to tax 
positions; 
3

•
regulatory changes and developments;
•
regulatory oversight and actions regarding our operations and products; 
•
regulatory compliance problems or government investigations;
•
risks from the proliferation of counterfeit, misbranded, adulterated, or illegally compounded products;
•
actual or perceived deviation from environmental-, social-, or governance-related requirements or 
expectations;
•
asset impairments and restructuring charges; and
•
changes in accounting and reporting standards. 
Investors should also carefully read the factors described under Item 1A, "Risk Factors" in this Annual Report 
on Form 10-K for a description of certain risks that could, among other things, cause our actual results to 
differ from those expressed in forward-looking statements. Investors should understand that it is not possible 
to predict or identify all such factors and should not consider the risks described above and under Item 1A, 
"Risk Factors" to be a complete statement of all potential risks and uncertainties.
All forward-looking statements speak only as of the date of this Annual Report and are expressly qualified in 
their entirety by the risk factors and cautionary statements included in this Annual Report. Except as is 
required by law, we expressly disclaim any obligation to publicly release any revisions to forward-looking 
statements to reflect events after the date of this Annual Report.
Trademarks and Trade Names
All trademarks or trade names referred to in this Annual Report on Form 10-K are the property of the 
company, or, to the extent trademarks or trade names belonging to other companies are referenced in this 
Annual Report on Form 10-K, the property of their respective owners. Solely for convenience, the trademarks 
and trade names in this Annual Report on Form 10-K are referred to without the ® and ™ symbols, but such 
references should not be construed as any indicator that the company or, to the extent applicable, their 
respective owners will not assert, to the fullest extent under applicable law, the company’s or their rights 
thereto. We do not intend the use or display of other companies’ trademarks and trade names to imply a 
relationship with, or endorsement or sponsorship of us by, any other companies.
4

Part I
Item 1. Business
Eli Lilly and Company (referred to as the company, Lilly, we, or us) was incorporated in 1901 in Indiana to 
succeed to the drug manufacturing business founded in Indianapolis, Indiana, in 1876 by Colonel Eli Lilly. We 
discover, develop, manufacture, and market products in a single business segment—human pharmaceutical 
products.
Our purpose is to unite caring with discovery to create medicines that make life better for people around the 
world. Our long-term success depends on our ability to continually discover or acquire, develop, and 
commercialize innovative medicines.
We manufacture and distribute our products through facilities in the United States (U.S.), including Puerto Rico, 
and in Europe and Asia. Our products are sold in approximately 95 countries.
Products
Our products include:
Cardiometabolic 
Health products
Basaglar
In collaboration with Boehringer Ingelheim, a long-acting human insulin 
analog for the treatment of diabetes.
Humalog, Humalog 
Mix 75/25, Humalog 
U-100, Humalog 
U-200, Humalog Mix 
50/50, insulin lispro, 
insulin lispro 
protamine, and insulin 
lispro mix 75/25
Human insulin analogs for the treatment of diabetes.
Humulin, Humulin 
70/30, Humulin N, 
Humulin R, and 
Humulin U-500
Human insulins of recombinant DNA origin for the treatment of 
diabetes.
Jardiance
In collaboration with Boehringer Ingelheim, for the treatment of type 2 
diabetes; to reduce the risk of cardiovascular death in adult patients 
with type 2 diabetes and established cardiovascular disease; to reduce 
the risk of cardiovascular death and hospitalizations for heart failure in 
adults; and to reduce the risk of sustained decline in estimated 
glomerular filtration rate (eGFR), end-stage kidney disease, 
cardiovascular death and hospitalization in adults with chronic kidney 
disease (CKD) at risk of progression.
Mounjaro
A glucose-dependent insulinotropic polypeptide and glucagon-like 
peptide-1 receptor agonist, for the treatment of adults with type 2 
diabetes in combination with diet and exercise to improve glycemic 
control.
Trulicity
For the treatment of type 2 diabetes in adults and pediatric patients 10 
years of age and older; and to reduce the risk of major adverse 
cardiovascular events in adult patients with type 2 diabetes and 
established cardiovascular disease or multiple cardiovascular risk 
factors.
Zepbound
For the treatment of adults with obesity or overweight with at least one 
weight-related comorbid condition in combination with a reduced-calorie 
diet and increased physical activity; and for the treatment of moderate 
to severe obstructive sleep apnea in adults with obesity in combination 
with a reduced-calorie diet and increased physical activity (relevant 
indications marketed under Mounjaro in various markets outside the 
U.S.).
Therapeutic 
area
Products
Certain Indications
5

Oncology 
products
Cyramza
For use as monotherapy or in combination with another agent as a 
second-line treatment of advanced or metastatic gastric cancer or 
gastro-esophageal junction adenocarcinoma; in combination with 
another agent as a second-line treatment of metastatic non-small cell 
lung cancer (NSCLC); in combination with another agent as a second-
line treatment of metastatic colorectal cancer; as a monotherapy as a 
second-line treatment of hepatocellular carcinoma; and in combination 
with another agent as a first-line treatment of adult patients with 
metastatic NSCLC with activating epidermal growth factor receptor 
(EGFR) mutations.
Erbitux
Indicated both as monotherapy and in combination with another agent 
for the treatment of certain types of colorectal cancers; and as 
monotherapy, in combination with chemotherapy, or in combination with 
radiation therapy for the treatment of certain types of head and neck 
cancers.
Jaypirca
For the treatment of adult patients with relapsed or refractory mantle 
cell lymphoma (MCL) after at least two lines of systemic therapy, 
including a BTK inhibitor; and for the treatment of adult patients with 
chronic lymphocytic leukemia or small lymphocytic lymphoma who have 
received at least two prior lines of therapy, including a BTK inhibitor and 
a BCL-2 inhibitor.
Retevmo
For the treatment of metastatic NSCLC with a rearranged during 
transfection (RET) gene fusion in adult patients; for the treatment of 
advanced metastatic medullary thyroid cancer with a RET mutation who 
require systemic therapy in adult and pediatric patients; for the 
treatment of advanced or metastatic thyroid cancer with a RET gene 
fusion in adult and pediatric patients who require systemic therapy and 
are radioactive iodine-refractory; and for the treatment of adult patients 
with locally advanced or metastatic solid tumors with a RET gene fusion 
who have progressed on or following prior systemic treatment or who 
have no satisfactory alternative treatment options.
Tyvyt
In collaboration with Innovent Biologics, Inc., for the treatment of 
relapsed or refractory classic Hodgkin's lymphoma; for the first-line 
treatment of non-squamous NSCLC in combination with Alimta and 
another agent; for the first-line treatment of squamous NSCLC in 
combination with two other agents; for the first-line treatment of 
hepatocellular carcinoma in combination with another agent; for the 
first-line treatment of esophageal squamous cell carcinoma in 
combination with certain other agents; for the first-line treatment of 
gastric cancer in combination with two other agents; and, in 
combination with two other agents, for patients with EGFR-mutated 
non-squamous NSCLC that progressed after EGFR-tyrosine kinase 
inhibitor therapy, each in China.
Verzenio
For use as monotherapy or in combination with endocrine therapy for 
the treatment of HR+, HER2- metastatic breast cancer, and in 
combination with endocrine therapy for treatment of HR+, HER2-, node 
positive, early breast cancer at high risk of recurrence.
Therapeutic 
area
Products
Certain Indications
6

Immunology 
products
Ebglyss
For the treatment of adult and adolescent patients 12 years or older 
with moderate to severe atopic dermatitis (in Europe, in collaboration 
with Almirall S.A.).
Olumiant
In collaboration with Incyte Corporation, for the treatment of adults with 
moderately to severely active rheumatoid arthritis after treatment with 
one or more tumor necrosis factor (TNF) blockers that did not work well 
enough or could not be tolerated; moderate to severe atopic dermatitis; 
severe alopecia areata; and for the treatment of hospitalized adults with 
COVID-19 who require supplemental oxygen, mechanical ventilation, or 
extracorporeal membrane oxygenation.
Omvoh
For the treatment of moderately to severely active ulcerative colitis in 
adults and for the treatment of moderately to severely active Crohn's 
disease in adults.
Taltz
For the treatment of adults and pediatric patients aged 6 years or older 
with moderate to severe plaque psoriasis; adults with active psoriatic 
arthritis; adults with ankylosing spondylitis; and adults with active non-
radiographic axial spondyloarthritis.
Neuroscience 
products
Emgality
For migraine prevention and the treatment of episodic cluster headache 
in adults.
Kisunla
For adults with early symptomatic Alzheimer's disease with confirmed 
amyloid pathology and with mild cognitive impairment or mild dementia 
stage of disease.
Therapeutic 
area
Products
Certain Indications
Marketing and Distribution
We sell most of our products worldwide. We adapt our marketing methods and product emphasis in various 
countries to meet local customer needs and comply with local regulations.
U.S.
We educate healthcare providers about our products in various ways, including promoting in online channels, 
distributing literature and samples of certain products to physicians, and exhibiting at medical meetings. In 
addition, we advertise certain products directly to consumers in the U.S., and we maintain websites and other 
media channels (e.g., social media) with information about our major products. Promotion of our major products 
in the U.S. includes engagement by employee or contracted sales representatives with physicians and other 
healthcare professionals.
Our account managers service wholesalers, pharmacy benefit managers, managed care organizations, group 
purchasing organizations, government and long-term care institutions, hospitals, and certain retail pharmacies. 
We enter into arrangements with these organizations to provide discounts or rebates on our products.
In the U.S., most of our products are distributed through wholesalers that serve pharmacies, physicians and 
other healthcare professionals, and hospitals. In 2024, 2023, and 2022, three wholesale distributors in the U.S.—
McKesson Corporation, Cencora, Inc., and Cardinal Health, Inc.—each accounted for a significant percentage of 
our consolidated revenue. No other customer accounted for more than 10 percent of our consolidated revenue in 
any of these years. For additional information, see Item 8, "Financial Statements and Supplementary Data—Note 
2: Revenue."
We recently launched LillyDirect, a direct-to-consumer digital health care platform designed to, among other 
things, provide patients in the U.S. living with obesity, migraine and diabetes with tools to help them access care 
from independent healthcare providers, as well as the option for home delivery of select prescribed Lilly 
medicines through third-party pharmacies. Programs to assist patients in adhering to treatment plans are also 
available for use. We have launched, and continue to explore, new partnerships and tools, including through 
LillyDirect, to expand access to our medicines. New initiatives may expose us to new risks or exacerbate existing 
risks. See, for examples, Item 1A, "Risk Factors—Risks Related to Our Operations—Failure, inadequacy, breach 
of, or unauthorized access to, our IT systems or those of our third-party service providers, unauthorized access 
to our confidential information, or violations of data protection laws, could each result in material harm to our 
7

business and reputation" and "Risk Factors—Risks Related to Litigation and Government Regulation—
Regulatory compliance problems could be damaging to the company."
Outside the U.S.
The products we market and their distribution vary from country to country. Outside the U.S., we promote our 
products to healthcare providers through sales representatives and other channels. We maintain our own sales 
organizations in many countries. We also often utilize third parties for commercial sales operations, some of 
which are engaged through distribution and promotion arrangements.
Marketing Collaborations
Certain of our products are marketed in arrangements with other pharmaceutical companies. For example, we 
and Boehringer Ingelheim have a global agreement to develop and commercialize a portfolio of diabetes 
products, including Jardiance, Glyxambi, Synjardy, and Trijardy XR. 
For additional information, see Item 8, "Financial Statements and Supplementary Data—Note 4: Collaborations 
and Other Arrangements."
Competition
Our products compete globally with many other pharmaceutical products in highly competitive markets. 
Important competitive factors include effectiveness, safety, availability, ease of use, and overall patient 
experience; formulary placement, price, payer coverage and reimbursement rates, and demonstrated cost-
effectiveness; regulatory approvals; marketing effectiveness; and research and development of new products, 
processes, modalities, indications, and uses. Early market entry and rapid patient access can also be important 
to achieve product acceptance and success. Barriers to reimbursable patient access in some cases include 
default payer coverage restrictions for our medicines. For example, in the U.S., anti-obesity medicines are often 
excluded from commercial benefit plans. Self-insured employers must opt in for coverage of these medicines. 
Medicare and payers in various international markets also have not covered anti-obesity medicines for weight 
loss. Our anti-obesity medicines comprise a significant portion of our revenues, and barriers to reimbursable 
patient access may impact our sales volumes, business, and results of operations.
Most new products or uses that we introduce must compete with other branded, biosimilar, or generic products 
already on the market or that are later developed. When new products, uses, or delivery systems with 
therapeutic, convenience, or cost advantages are introduced, including by developing new modalities, our 
existing products become subject to decreased sales volumes, progressive price reductions, or both. 
We believe our long-term competitive success depends on discovering and developing or acquiring innovative, 
cost-effective products that provide improved outcomes for patients and deliver value to payers, and 
continuously improving the productivity of our operations in a highly competitive environment. There can be no 
assurance that our efforts will result in commercially successful products, and it is possible that our products or 
indications will be, or will become, uncompetitive from time to time. See also "—Competition—U.S. Private 
Sector Dynamics."
Generic Pharmaceuticals, Biosimilars, and Compounding
Generic Pharmaceuticals and Biosimilars
Generic pharmaceuticals and biosimilars can pose major competitive challenges to our business. In most major 
jurisdictions, the regulatory approval process for pharmaceuticals (other than biological products (biologics)) 
exempts generics from costly and time-consuming clinical trials to demonstrate their safety and efficacy, allowing 
generic manufacturers to rely on the safety and efficacy of the innovator product. As a result, generic 
manufacturers generally invest far fewer resources than we do for our branded products in research and 
development and can price their products significantly lower than our branded products. Accordingly, when a 
branded non-biologic pharmaceutical loses its market exclusivity, it normally faces intense price competition from 
generic forms of the product, which can result in the loss of a significant portion of the branded product's revenue 
in a very short period of time. Moreover, governments in some countries leverage generic entrants to drive price 
concessions through the utilization of volume-based procurement bidding and other measures.
8

Further, public and private payers typically encourage the use of generics as alternatives to branded products. 
Laws in the U.S. generally allow, and in many cases require, pharmacists to substitute generics that have been 
rated under government procedures to be essentially equivalent to a branded product. Where substitution is 
mandatory, it must be made unless the prescribing physician expressly forbids it. In certain countries, intellectual 
property protection is weak, and we must compete with generic versions of our products at or relatively shortly 
after launch.
In addition, competition for our biologics, which constitute a substantial portion of our products and pipeline, may 
be affected by the approval of follow-on biologics, also known as biosimilars. A biosimilar is a subsequent version 
of an approved innovator biologic that, due to its analytical and clinical similarity to the innovator biologic, may be 
approved based on an abbreviated data package that relies in part on the full testing required of the innovator 
biologic. 
Globally, most governments have developed abbreviated regulatory pathways to approve biosimilars as follow-
ons to innovator biologics, including the Biologics Price Competition and Innovation Act of 2009 (the BPCIA) in 
the U.S. A number of biosimilars have been licensed under the BPCIA, as well as in Europe and Japan. 
Regulatory interpretation of important aspects of the laws regulating biosimilars continues to evolve, and 
therefore the impact of these laws on our business remains subject to substantial uncertainty. For example, the 
extent to which a biosimilar, once approved, will be substituted for the innovator biologic in a way that is similar to 
traditional generic substitution for non-biologic products will depend on a number of regulatory and marketplace 
factors that are still developing.
Biosimilars may present both competitive challenges and opportunities. While competitors have developed 
biosimilars that compete with our products, we have developed our own biosimilar and may develop others in the 
future. 
Compounding
In recent periods, we have seen an increase in the production, marketing, and sale of counterfeit, misbranded, 
adulterated, and compounded incretins. These practices may impact patient safety, undermine regulatory drug 
approval processes, and present market risks. If inadequately regulated, these practices could materially impact 
our business and reputation, including by creating consumer confusion or misperceptions about the safety and 
efficacy of our genuine products, diversion of potential sales, and potential net price erosion for our products. 
See Item 1, "Business—Government Regulation of Our Operations and Products," for additional information on 
market risks related to counterfeit, misbranded, adulterated, and compounded medicines.
U.S. Private Sector Dynamics
In the U.S. private sector, consolidation and integration among healthcare organizations significantly affects the 
competitive marketplace for pharmaceuticals. Health plans, managed care organizations, pharmacy benefit 
managers, wholesalers, pharmacies, and other supply chain entities have consolidated into fewer, larger entities, 
thus enhancing their market power and importance. Private third-party insurers, as well as governments, typically 
maintain formularies that specify coverage (the conditions under which drugs are included on a plan's formulary) 
and reimbursement (the associated out-of-pocket cost to the consumer) to control costs by negotiating discounts 
or rebates in exchange for formulary inclusion and placement.
Formulary placement can lead to reduced usage of a product for the relevant patient population due to coverage 
restrictions, such as prior authorizations and formulary exclusions, or due to reimbursement limitations that result 
in higher consumer out-of-pocket cost, such as non-preferred co-pay tiers, increased co-insurance levels, and 
higher deductibles. Consequently, pharmaceutical companies face increased pressure in negotiations, and 
compete fiercely for formulary placement, not only on the basis of product attributes such as efficacy, safety 
profile, or patient ease of use, but also by providing rebates or other concessions. As payers and pharmaceutical 
companies continue to negotiate formulary placement and rebates, value-based agreements, where rebates may 
be based on achievement (or not) of specified outcomes, are another increasingly prevalent tool. Rebates and 
net cost are increasingly important factors in formulary decisions, particularly in treatment areas in which the 
payer has taken the position that multiple branded products are therapeutically comparable. These pressures 
have negatively affected, and could continue to negatively affect, our consolidated results of operations. In 
addition to formulary placement, changes in insurance designs continue to drive greater consumer cost-sharing 
through high deductible plans, higher co-insurance, or co-pays, including increased utilization of co-pay 
accumulator adjustment or maximization programs. Supply chain entities have also increasingly imposed 
utilization management tools to favor the use of generic products or otherwise limit access to our products. For 
additional information on pricing and reimbursement for our pharmaceutical products, see "—Regulations and 
Private Payer Actions Affecting Pharmaceutical Pricing, Reimbursement, and Access—U.S."
9

Patents, Trademarks, and Other Intellectual Property Rights
Overview
Intellectual property protection is critical to our ability to successfully commercialize our life sciences innovations 
and invest in the search for new medicines and uses. Loss of effective patent protection for pharmaceuticals, 
especially for non-biologic products, typically results in the loss of effective market exclusivity for the product, 
often leading to a severe and rapid decline in revenues for the product. We own, have applied for, or are licensed 
under, a large number of patents in the U.S. and many other countries relating to products, product uses, 
formulations, and manufacturing processes. In addition, for some products we have effective intellectual property 
protection in the form of data protection under pharmaceutical regulatory laws.
The patent protection generally anticipated to be of most relevance to pharmaceuticals is provided by patents 
claiming the active ingredient (the compound patent) for our products, particularly those in major markets such 
as the U.S., major European countries, and Japan. In general, patents in each relevant country last for a period 
of 20 years from their filing date, which is often years prior to the launch of a commercial product. Further patent 
term adjustments and restorations may extend the original patent term:
•
Patent term adjustment is available to all U.S. patent applicants to provide relief in the event that a 
patent grant is delayed during examination by the U.S. Patent and Trademark Office (USPTO).
•
Patent term restoration for a single patent for a pharmaceutical product is provided to U.S. patent 
holders to compensate for a portion of the time invested in clinical trials and the U.S. Food and Drug 
Administration (FDA) review process. There is a five-year cap on any restoration, and no patent's 
expiration date may be extended beyond 14 years from initial FDA approval. Some countries outside the 
U.S. similarly offer forms of patent term restoration. For example, Supplementary Protection Certificates 
are available to extend the life of a European patent up to an additional five years (subject to a 15-year 
cap from European Medicines Agency (EMA) approval) and in Japan patent terms can be extended up 
to five years.
In some cases, the innovator company may retain exclusivity despite approval of the generic, biosimilar, or other 
follow-on versions of a new medicine beyond the expiration of the compound patent through market dynamics 
and challenges, later-expiring patents on manufacturing processes, methods of use or formulations, or data 
protection that may be available under pharmaceutical regulatory laws. The primary forms of data protection are 
as follows:
•
Data package protection generally prohibits regulatory approval of other manufacturers' applications for 
marketing approval if they rely on the innovator company's regulatory submission data for the drug. The 
base period is generally five years in the U.S. (12 years for new biologics under the BPCIA, subject to 
certain conditions), effectively 10 years in Europe, and eight years in Japan, which can be extended to 
10 years with qualifying pediatric studies. The period begins on the date of product approval and runs 
concurrently with the patent term for any relevant patents. Legislative bodies in the European Union (EU) 
are discussing proposed reductions in data protection periods but it remains uncertain if, or when, these 
proposals might be adopted.
•
In the U.S., the FDA has the authority to grant additional data protection for approved drugs where the 
sponsor conducts specified testing in pediatric populations within a specified time period. If granted, this 
"pediatric exclusivity" provides an additional six months of exclusivity, which is added to the term of data 
protection, orphan drug exclusivity and, for products other than biologics, pediatric exclusivity is also 
added to the term of any relevant and non-expired patents.
•
A specific use of a drug or biologic can receive "orphan" designation in the U.S. if it is intended to treat a 
disease or condition affecting fewer than 200,000 people in the U.S., or where it is not reasonably 
expected to recover development and marketing costs through U.S. sales. Orphan designation entitles a 
particular use of the drug to seven years of market exclusivity, which runs in parallel with any applicable 
patents.
Outside the major markets, the adequacy and effectiveness of intellectual property protection for 
pharmaceuticals vary widely. International and U.S. free trade agreements like the Agreement on Trade-Related 
Aspects of Intellectual Property Rights (TRIPs Agreement) administered by the World Trade Organization provide 
global protection of certain intellectual property rights. But in a number of markets we are unable to patent our 
products or to enforce the patents that we receive for our products. Further, many developing countries, and 
some developed countries, do not provide effective data package protection even though it is specified in the 
TRIPs Agreement. 
10

Our Intellectual Property Portfolio
We consider intellectual property protection for certain products, processes, uses, and formulations to be 
important to our business. In addition to the patents and data protection identified below, we may hold patents on 
manufacturing processes, formulations, devices, or uses that provide protection beyond the estimated dates 
shown below. For approved products, estimated dates include, where applicable, pending or granted patent term 
extensions. Where granted, estimated dates for approved products also reflect pediatric or orphan drug 
exclusivity. The length of market exclusivity for our products can be difficult to predict with certainty because of 
the complex interaction between patent and regulatory forms of exclusivity and the inherent uncertainties 
regarding patent litigation. There can be no assurance that a particular product will maintain market exclusivity 
for the duration of the estimated expiry or that exclusivity will be limited to that time frame.
The most relevant patent protection or data protection and associated expiry dates for our major or recently 
launched patent-protected marketed products are as follows:
Cardiometabolic 
Health products
Jardiance
compound patent
U.S.*
2029
major European countries
2029
Japan
2030
Mounjaro/
Zepbound
compound patent
U.S.
2036
major European countries
2037
Japan
2040
data protection
U.S.
2027
major European countries
2033
Japan
2030
Trulicity
compound patent
U.S.
2027
major European countries
2029
Japan
2029
biologics data protection U.S.
2027
data protection
major European countries
2024
Therapeutic Area
Product
Protection
Territory
Estimated 
Expiry Date
11

Oncology products
Cyramza
compound patent
U.S.
2026
major European countries
2028
Japan
2026
biologics data protection U.S.
2026
data protection
major European countries
2024
Jaypirca
compound patent
U.S.
2037
major European countries
2038
Japan
2040
data protection
U.S.
2028
major European countries
2033
Japan
2032
Retevmo
compound patent
U.S.
2037
major European countries
2037
Japan
2038
data protection
U.S.
2025
major European countries
2031
Japan
2031
Verzenio
compound patent
U.S.
2031
major European countries
2033
Japan
2034
data protection
major European countries
2028
Japan
2026
Immunology 
products
Ebglyss
compound patent
U.S.
2026
major European countries
2024
Japan
2029
biologics data protection U.S.
2036
data protection
major European countries
2033
Japan
2034
Olumiant
compound patent
U.S.
2032
major European countries
2032
Japan
2033
data protection
major European countries
2027
Japan
2025
Omvoh
compound patent
U.S.
2037
major European countries
2038
Japan
2039
biologics data protection U.S.
2035
data protection
major European countries
2033
Japan
2033
Taltz
compound patent
U.S.
2030
major European countries
2031
Japan
2030
biologics data protection U.S.
2028
data protection
major European countries
2027
Japan
2024
Therapeutic Area
Product
Protection
Territory
Estimated 
Expiry Date
12

Neuroscience 
products
Emgality
compound patent
U.S.
2033
major European countries
2033
Japan
2035
biologics data protection U.S.
2030
data protection
major European countries
2028
Japan
2029
Kisunla
compound patent
U.S.
2036
Japan
2036
biologics data protection U.S.
2036
data protection
Japan
2032
Reyvow
compound patent
U.S.
2028
Japan
2028
data protection
major European countries
2032
Japan
2032
Therapeutic Area
Product
Protection
Territory
Estimated 
Expiry Date
* Jardiance and the related combination product, Glyxambi.
The following product candidates are the most relevant that are currently under regulatory review. Upon 
approval, we expect relevant compound patent and data protections to apply:
•
Donanemab has been submitted for regulatory review in the EU for the treatment of early Alzheimer's 
disease.
•
Imlunestrant has been submitted for regulatory review in the U.S., the EU, and Japan for the treatment of 
ER-positive HER2-negative metastatic breast cancer.
Worldwide, we sell all of our major products under trademarks consisting of our product names, logos, and 
unique product appearances that we consider in the aggregate to be important to our operations. Trademark 
protection varies throughout the world. Trademark protection typically extends beyond the patent and data 
protection for a product.
We also rely in some circumstances on trade secrets and other unpatented know-how. We seek to protect our 
confidential information in part through confidentiality agreements with our employees, corporate partners, 
collaborators, and vendors. These agreements may be breached, and we cannot be certain that we have 
adequate remedies. If our trade secrets or confidential information become known or are independently 
discovered by competitors, or if we enter into disputes over ownership of inventions, our business and results of 
operations could be adversely affected. 
Patent Licenses and Collaborations
Some of our products are subject to significant license and collaboration agreements. For information on our 
license and collaboration agreements, see Item 8, "Financial Statements and Supplementary Data—Note 4: 
Collaborations and Other Arrangements." 
Patent Challenges 
In the U.S., the Drug Price Competition and Patent Term Restoration Act of 1984, commonly known as the 
Hatch-Waxman Act, authorizes the FDA to approve generic versions of innovative pharmaceuticals (other than 
biologics) when the generic manufacturer files an Abbreviated New Drug Application (ANDA). 
Absent a patent challenge, the FDA cannot approve an ANDA until after certain of the innovator's patents expire. 
However, after the innovator has marketed its product for four years, a generic manufacturer may file an ANDA 
alleging that the patent(s) listed in the innovator's New Drug Application (NDA) are invalid, unenforceable or not 
infringed.
Generic manufacturers use this process extensively to challenge patents on innovative pharmaceuticals. In 
addition, generic companies have shown willingness to launch "at risk," i.e., after receiving ANDA approval but 
before final resolution of their patent challenge.
13

Under the BPCIA, the FDA cannot approve an application for a biosimilar product until data protection expires, 
12 years after initial marketing approval of the innovator biologic, and an application may not be submitted until 
four years following the date the innovator biologic was first approved. However, the BPCIA does provide a 
mechanism for a prospective biosimilar competitor to challenge the validity of an innovator's patents as early as 
four years after initial marketing approval of the innovator biologic. 
The patent litigation scheme under the BPCIA, and the BPCIA itself, is complex and continues to be interpreted 
and implemented by the FDA, as well as by courts. Courts have held that biosimilar applicants are not required 
to engage in the BPCIA patent litigation scheme and patent holders retain the right to bring suit under normal 
patent law procedures if a biosimilar applicant attempts to commercialize a product prior to patent expiration. In 
addition, there is a procedure in U.S. patent law, known as inter partes review (IPR), which allows any member of 
the public to file a petition with the USPTO seeking the review of any issued U.S. patent for validity. IPRs are 
conducted before Administrative Patent Judges in the USPTO using a lower standard of proof than used in 
federal district court and challenged patents are not accorded the presumption of validity. Generic drug 
companies and even some investment firms have engaged in the IPR process in attempts to invalidate our 
patents. In recent years, U.S. government officials have proposed the exercise of "march-in-rights" and various 
other measures that, if enacted, could have a negative impact on our patent rights. We cannot predict the 
likelihood that these or similar proposals will be adopted, but, if adopted, our business and results of operations 
could be adversely affected.
Outside the U.S., the legal doctrines and processes by which pharmaceutical patents can be challenged vary 
widely. In recent years, we have experienced an increase in patent challenges from generic manufacturers in 
many countries outside the U.S.
For more information on patent challenges and litigation involving our intellectual property rights, see Item 1A, 
"Risk Factors—Risks Related to Our Business—Our long-term success depends on intellectual property 
protection; if our intellectual property rights are invalidated, circumvented, or weakened, our business will be 
adversely affected" and Item 8, "Financial Statements and Supplementary Data—Note 16: Contingencies." 
Government Regulation of Our Operations and Products
Our operations are regulated extensively by numerous government agencies. The lengthy process of laboratory 
and clinical testing, data analysis, manufacturing development, and regulatory review necessary for 
governmental approvals of our products is extremely costly and can significantly delay product introductions and 
revenue generation. In addition, our operations are subject to complex federal, state, local, and foreign laws and 
regulations concerning relationships with healthcare providers and suppliers, pricing and reimbursement for our 
products, the environment, occupational health and safety, data privacy and security, and other matters. Evolving 
regulatory priorities have intensified governmental scrutiny of our operations and those of other healthcare 
intermediaries, including with respect to current Good Manufacturing Practices (cGMP), quality assurance, and 
similar regulations. Regulatory oversight of the pharmaceutical industry entails judgment and interpretation, 
which can result in varying interpretations of laws and regulations by health and other authorities. In addition, 
changing political leadership, including the new presidential administration and regulatory authorities in the U.S., 
may propose, enact, or pursue policy, regulatory, and enforcement changes that create additional uncertainty for 
our business. Compliance with the laws and regulations affecting the manufacture and sale of our current 
products and the discovery, development, and introduction of new products and uses has and will continue to 
require substantial effort, expense, and capital investment.
Of particular importance to our business is regulation by the FDA in the U.S. Pursuant to laws and regulations 
that include the Federal Food, Drug, and Cosmetic Act (FDCA) and the Public Health Service Act (PHS), the FDA 
exercises jurisdiction over all of our products and devices in the U.S. and administers requirements covering the 
testing, safety, effectiveness, manufacturing, quality control, distribution, labeling, marketing, promotion, 
advertising, dissemination of information, and post-marketing surveillance of those products and devices. The 
FDA holds broad discretion under the FDCA to interpret the conditions and evidence necessary for timely 
approval of and ability to market our drugs and devices as well as those of our competitors. The centrality to our 
business of the FDA and corresponding international regulators exposes us to risks of oversight, administrative, 
and enforcement changes, delays, inconsistencies, lapses, or failures, including as may derive from insufficient 
staffing levels, expertise, or resources.
14

Following approval, our products must meet, and must continue to comply with, regulation by various 
government and regulatory agencies in connection with labeling, import, export, sale, storage, recordkeeping, 
advertising, promotion, and safety reporting. We conduct extensive post-marketing surveillance of the safety of 
the products we sell and comply with notification requirements related to safety and efficacy, product supply, and 
other aspects of our products and operations. The FDA may withdraw approval of a product if compliance with 
regulatory requirements and standards is not maintained or if problems occur after a product reaches the market, 
including as may be identified through market surveillance or third-party studies involving our products. The FDA 
may also mandate labeling changes, post-marketing studies, or risk management programs to products at any 
point in a product's life cycle based on new safety information or as part of a labeling change to a particular class 
of products. In addition, the FDA strictly regulates marketing, labeling, advertising, and promotion of products to 
prescribers and patients. Pharmaceutical products may be promoted only for approved indications and in 
accordance with the provisions of the approved label. The FDA and other agencies enforce the laws and 
regulations prohibiting the promotion of off-label uses. 
Outside the U.S., our products and operations are subject to similar regulatory requirements, notably by the EMA 
in Europe, the Ministry of Health, Labor and Welfare in Japan, and the National Medical Products Administration 
in China. Specific regulatory requirements vary from country to country. Regulatory and compliance 
requirements, as well as approval processes outside the U.S., differ from those in the U.S. and may involve 
additional costs, uncertainties, and risks.
The FDA and other regulatory agencies outside the U.S. extensively regulate all aspects of manufacturing quality 
for pharmaceuticals under their cGMP regulations. Regulators assess compliance with these regulations by 
inspecting the equipment, facilities, laboratories, and processes used in the manufacturing and testing of our 
products prior to marketing approval with periodic reinspection thereafter; this may include inspection of our third-
party business partners. We make substantial investments of capital and operating expenses to implement 
comprehensive, company-wide quality systems and controls in our manufacturing, product development, and 
process development operations in an effort to maintain sustained compliance with cGMP and other regulations. 
Nonetheless, manufacturing quality and other aspects of pharmaceutical regulatory compliance is heavily 
scrutinized and results in government investigations, regulatory and legal actions, product recalls and seizures, 
fines and penalties, interruption of production leading to product shortages, import bans or denials of import 
certifications, delays or denials in new product approvals, line extensions or supplemental approvals of current 
products pending resolution of any issues, any of which have and could in the future adversely affect our 
business and reputation. Certain of our products, devices and components are manufactured by third parties, 
and their failure to comply with these regulations has and could in the future adversely affect us, including 
through failure to supply product to us or delays in approvals of new products or indications. Any determination 
by the FDA or other regulatory authorities of manufacturing or other deficiencies could adversely affect our 
business and reputation. For more information on product regulation challenges, see Item 1A, "Risk Factors—
Risks Related to Our Operations—Reliance on third-party relationships and outsourcing arrangements could 
adversely affect our business."
We rely on the FDA and other regulatory bodies for appropriate oversight, administration, and enforcement of our 
industry, anyone marketing or purporting to market medicines, and public health. We have seen an increase in 
the production, marketing, and sale of counterfeit, misbranded, adulterated, and compounded incretins. In the 
U.S., these activities include mass compounding based on asserted reliance on regulatory exceptions that permit 
limited compounding in certain circumstances by certain entities. In contrast to the strict regulation of our facilities 
and manufacturing practices, these actors have experienced low barriers to entry and a lack of regulatory 
oversight and enforcement. These practices may impact patient safety and undermine regulatory drug approval 
processes. If inadequately regulated, these practices could materially impact our business and reputation, 
including by creating consumer confusion or misperceptions about the safety and efficacy of our genuine 
products, diversion of potential sales and potential net price erosion for our products.
Other Laws and Regulations
The marketing, promotional, and pricing practices of pharmaceutical manufacturers, as well as the manner in 
which manufacturers interact with purchasers, prescribers, and patients, are subject to various other U.S. federal 
and state laws, as well as analogous foreign laws and regulations, including the federal anti-kickback statute, the 
False Claims Act, antitrust laws, and state laws governing kickbacks, false claims, unfair trade practices, and 
consumer protection. These laws are administered by, among others, the Department of Justice, the Office of 
Inspector General of the U.S. Department of Health and Human Services (HHS), the Federal Trade Commission, 
the Office of Personnel Management, and state attorneys general. State, federal, and foreign governments, 
agencies, and other regulatory bodies are active in their oversight, enforcement activities, and coordination with 
15

respect to pharmaceutical companies, which has resulted in intensified scrutiny, litigation costs, corporate 
criminal sanctions, and substantial civil settlements in the pharmaceutical industry. 
The U.S. Foreign Corrupt Practices Act of 1977 (FCPA) prohibits certain individuals and entities, including U.S. 
publicly traded companies, from promising, offering, or giving anything of value to foreign officials with the corrupt 
intent of influencing the foreign official for the purpose of helping the company obtain or retain business or gain 
any improper advantage. The FCPA also imposes specific recordkeeping and internal controls requirements on 
U.S. publicly traded companies. As noted above, our business is heavily regulated and therefore involves 
significant interaction with officials outside the U.S. Additionally, in many countries outside the U.S., healthcare 
providers who prescribe pharmaceuticals may be employed by the government and purchasers of 
pharmaceuticals are government entities; therefore, our interactions with these prescribers and purchasers are 
subject to regulation under the FCPA. 
Various other jurisdictions in which we operate and supply our products have laws and regulations aimed at 
preventing and penalizing corrupt and anticompetitive behavior. 
We are, and could in the future become, subject to administrative and legal proceedings and actions, which 
could include claims for civil penalties (including treble damages), criminal sanctions, and administrative 
remedies, including exclusion from participation in government healthcare programs. It is possible that an 
adverse outcome in future actions could have a material adverse impact on our consolidated results of 
operations, liquidity, and financial position in any given period.
We are also subject to a variety of federal, state, local, and foreign environmental, health and safety, and other 
laws and regulations that may affect our research, development, or production efforts. 
Regulations and Private Payer Actions Affecting Pharmaceutical Pricing, Reimbursement, and Access 
U.S.
There continues to be considerable public and government scrutiny of pharmaceutical pricing. In addition, U.S. 
government actions to reduce federal spending on entitlement programs, including Medicare and Medicaid, 
affects payment for our products or services associated with the provision of our products. 
In 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (IRA). Among other measures, the IRA 
requires the HHS to effectively set prices for certain single-source drugs and biologics reimbursed under 
Medicare Part B and Part D. Generally, these government prices apply beginning at nine years (for medicines 
approved under a New Drug Application) or thirteen years (for medicines approved under a Biologics License 
Application) following FDA approval or licensure for the molecule and are set at a price that generally represents 
a significant discount from existing prices to wholesalers and direct purchasers. While the law specifies a 
maximum price that HHS can set, it does not set a minimum price. The Medicare price HHS determines may 
impact the product’s best price determination under the Medicaid Drug Rebate Program and the 340B Drug 
Pricing Program, potentially leading to a negative impact on both Medicaid and 340B prices. In August 2023, 
HHS selected Jardiance, which is part of our collaboration with Boehringer Ingelheim, as one of the first ten 
medicines subject to government-set prices effective in 2026. In August 2024, HHS announced the government-
set prices for these medicines with Jardiance subject to a 66% discount compared to the 2023 U.S. calendar 
year list price for a 30-day supply and discounts for the other nine medicines ranging from approximately 38% to 
79% below list price. Given our product portfolio, we expect additional significant products will be selected in 
future years, which would have the effect of accelerating revenue erosion prior to expiry of exclusivities. The 
effect of reducing prices and reimbursement for certain of our products could significantly impact our business 
and consolidated results of operations. 
Other IRA provisions require drug manufacturers to provide rebates for Medicare Part B and Part D medicines 
under certain circumstances. Also, on January 1, 2025 the Part D benefit redesign replaced the Part D Coverage 
Gap Discount Program (CGDP) with the new Manufacturer Discount Program (MDP). The 70 percent CGDP 
discount was replaced by a 10 percent MDP discount for all Medicare Part D beneficiaries that have met their 
deductible and incurred out of pocket drug costs below a $2,000 threshold and a 20 percent MDP discount for 
beneficiaries that have incurred out of pocket drug costs above the $2,000 threshold under the new Part D 
benefit redesign. Manufacturers that fail to comply with the IRA may be subject to various penalties, including 
civil monetary penalties, which could be significant.
16

The IRA has, and will continue to, meaningfully influence our business strategies and those of our competitors. In 
particular, the nine-year timeline to set prices for medicines approved under a New Drug Application reduces the 
attractiveness of investment in small molecule innovation. The IRA can cause changes to development approach 
and timing and investments at-risk. The full impact of the IRA on our business and the pharmaceutical industry, 
including the implications to us of a competitor's product being selected for price setting, remains uncertain.
Heightened governmental scrutiny over the manner in which drug manufacturers price their marketed products 
and the practices of pharmacy benefit managers and other supply chain entities has also resulted in several U.S. 
Congressional inquiries and proposed and enacted federal and state legislation designed to, among other things, 
bring more transparency to product pricing, review the relationship between pricing and manufacturer patient 
programs, require advance notice of list price increases, establish upper payment limits or other restrictions by 
drug affordability review boards, allow the importation of drugs from other countries, address pharmacy benefit 
manager practices, and reform government program reimbursement methodologies for drug products. Pharmacy 
benefit manager reform could be pursued or enacted in 2025. Restrictive or unfavorable pricing, coverage, or 
reimbursement determinations for our medicines or product candidates by governments, regulatory agencies, 
courts, or private payers could also adversely impact our business and financial results. Additional policies, 
regulations, legislation, or enforcement, including those proposed or pursued by the U.S. Congress, the U.S. 
executive branch and regulatory authorities worldwide, could intensify these efforts and adversely impact our 
business and consolidated results of operations.
In the U.S., we are required to provide rebates to the federal government and state governments on their 
purchases of our pharmaceuticals under various federal and state healthcare programs, including state Medicaid 
and Medicaid Managed Care programs (a minimum of 23.1 percent plus adjustments for price increases above 
the consumer price index over time) and discounts to private entities who treat patients in certain types of 
healthcare facilities intended to serve low-income and uninsured patients (known as 340B covered entities). 
Additionally, an annual fee is imposed on pharmaceutical manufacturers and importers that sell branded 
prescription drugs to specified government programs, such as Medicare Part B and Part D, and Medicaid. 
Changes to the 340B program or the Medicaid programs could have a material adverse impact on our business. 
For example, continued expansion of the 340B program and growth of entities claiming entitlement to 340B 
pricing, including in ways that may be inconsistent with the statutory scheme, impacts our revenue on an 
increasing percentage of sales. Changes to the calculation of rebates under the Medicaid program could also 
increase our Medicaid rebate obligations and decrease the prices charged to 340B covered entities.
We have implemented a Contract Pharmacy Limited Distribution System applicable to sales through the 340B 
program, which generally limits distribution of 340B-priced product to: (i) covered entities and their child sites; or 
(ii) if a covered entity lacks an in-house outpatient pharmacy, a single contract pharmacy designated by a 
covered entity to establish a 340B bill to/ship to arrangement. Claims-level data is ordinarily required for any 
contract pharmacy. Our Contract Pharmacy Limited Distribution System contains certain exceptions that permit 
broader contract pharmacy usage, including for "penny priced" insulin products, provided that the covered entity 
passes through all discounts to eligible patients at the point of sale and meets other conditions. We believe our 
Contract Pharmacy Limited Distribution System complies with the 340B statute, but it remains subject to ongoing 
inquiries and litigation that could have a material impact on our business, as discussed in Item 8, "Financial 
Statements and Supplementary Data—Note 16: Contingencies." Other aspects of the 340B program, including 
the manner in which manufacturers can offer 340B pricing, and proper definitions of "patient" and "child site" 
under the 340B statute, are also subject to ongoing litigation by Lilly and/or other parties, the resolution of which 
could impact the growth and scope of the 340B program. For example, on November 14, 2024, Lilly sued the 
Health Resources and Services Administration (HRSA) over its purported rejection of Lilly’s plan to implement a 
cash replenishment model to make 340B pricing available to 340B covered entities, in place of the current 
product replenishment model.
Rebates are also negotiated in the private sector. We pay rebates to private payers that provide prescription drug 
benefits to seniors covered by Medicare and to private payers that provide prescription drug benefits to their 
customers. These rebates are affected by the introduction of competitive products and generics in the same 
class. 
For a discussion of risks related to how we price our products, see Item 1A, "Risk Factors—Risks Related to Our 
Business—We are party to litigation and investigations related to our products, how we price or commercialize 
our products, and other aspects of our business, which could adversely affect our business, and we are self-
insured for such matters."
17

Outside the U.S.
Globally, public and private payers are increasingly restricting access to pharmaceuticals based on assessments 
of comparative effectiveness and value, including through the establishment of formal health technology 
assessment processes. In addition, third-party organizations, including professional associations, academic 
institutions, and non-profit entities associated with payers, conduct and publish comparative effectiveness and 
cost/benefit analyses on medicines, the impact of which can influence pharmaceutical access and pricing. 
In most international markets, we operate in an environment of government-mandated cost-containment 
programs, which may include price controls, international reference pricing, discounts and rebates, therapeutic 
reference pricing (to other, often generic, pharmaceutical choices), health technology assessments, regulatory 
hurdles, restrictions on physician prescription levels, and mandatory generic substitution. In these markets, 
healthcare services and the determination of pricing and reimbursement for pharmaceutical products are 
impacted by government control at the point of care or as the primary payer.
The European Commission published its draft General Pharmaceutical Legislation in April 2023. While certain 
elements in the European Commission draft could expedite regulatory timelines, we anticipate that the overall 
market and patient impact would be negative if the legislation is approved as drafted. Implementation timing is 
unknown at this time. Health care cost containment remains a focus in the EU, among other jurisdictions. Most 
countries in the EU attempt to contain drug costs by engaging in some form of reference pricing in which 
authorities examine pre-determined internal or external markets for published prices of a product or national 
class of drugs. Member states also have the power to restrict the range of pharmaceutical products for which 
their national health insurance systems provide reimbursement and may condition access on agreement of a 
reimbursement price or completion of cost-effectiveness or other gating studies. 
In Japan, our products can be subject to government-mandated annual price reductions. The government may 
also order re-pricings for specific products or classes of products if certain criteria are met, including exceeding 
product use thresholds.
China has introduced and implemented reforms to accelerate access to innovative products and reduce costs. To 
drive patient access, we seek inclusion of many of our branded products on China's National Reimbursement 
Drug List, a list of drugs fully or partially reimbursed by China’s national basic health insurance. In exchange for 
broad access, these products are generally subject to negotiation of significant price concessions. China also 
utilizes a value-based procurement program process for products that have generic substitutes. As a general 
matter, products that we choose to tender through this process are similarly subject to price reductions. Our 
business in China may be significantly impacted by the country's evolving pharmaceutical regulatory 
environment, including access, intellectual property protection, regulatory enforcement and compliance, and 
trade policies.
Governments in many emerging markets are also focused on limiting health care costs and have enacted price 
controls and measures impacting intellectual property. Reforms in our product markets, including those that may 
stem from periods of uneven economic growth or downturns or uncertainty, or as a result of high inflation, 
emergence, or escalation of, and responses to, international tension and conflicts, or government budgeting 
priorities, may continue to result in added pressure on pricing, access, and reimbursement for our products.
We cannot predict the extent to which our business may be affected by current or potential future legislative, 
regulatory, or payer developments. However, in general we expect to see continued focus on regulating pricing, 
resulting in additional state, federal, and international legislative and regulatory developments that could have 
further negative effects on pricing, access, and reimbursement for our products as well as overall operations.
See Item 7, "Management's Discussion and Analysis—Executive Overview—Other Matters—Trends Affecting 
Pharmaceutical Pricing, Reimbursement, and Access and Certain Other Regulatory Developments," for 
additional information regarding recent legislative, administrative, and other pricing initiatives and their impact on 
our results.
Research and Development
Our commitment to research and development dates back nearly 150 years. We invest heavily in research and 
development because we believe it is critical to our long-term competitiveness. At the end of 2024, we employed 
approximately 11,000 people in pharmaceutical research and development activities, including a substantial 
number of physicians, scientists holding graduate or postgraduate degrees, and highly skilled technical 
personnel. 
18

Our internal pharmaceutical research focuses primarily on the areas of immunology, metabolism (including 
diabetes, obesity and cardiovascular), neuroscience, and oncology. In addition to discovering and developing 
new medicines, we seek to expand the value of existing products through new uses, formulations, and 
therapeutic approaches, including complementary delivery devices or diagnostic tools, that can provide 
additional value to patients.
To supplement our internal efforts, we collaborate with others, including academic institutions and research-
based pharmaceutical and biotechnology companies. We use the services of physicians, hospitals, medical 
schools, and other organizations worldwide to conduct clinical trials to establish the safety and effectiveness of 
our medicines. We also invest in external research and technologies that we believe complement and strengthen 
our own efforts. These investments can take many forms, including, among others, licensing arrangements, co-
development agreements, co-promotion arrangements, joint ventures, acquisitions, and equity investments.
Pharmaceutical development is time-consuming, expensive, and risky. Very few of the candidates discovered by 
researchers ultimately become approved medicines. The process from discovery to regulatory approval can take 
over a decade. Candidates can fail at any stage of the process, and even late-stage candidates sometimes fail to 
receive regulatory approval or achieve commercial success. In addition, novel modalities can present more 
challenging or lengthy development timelines. The following describes in more detail the research and 
development process for pharmaceutical products:
Phases of New Drug Development
•
Discovery Phase
In the discovery phase, scientists identify, design, and synthesize promising candidates by analyzing their 
effect on biological targets considered to play a role in disease. Targets are often unproven and only 
candidates that are expected to have the desired effect on the target and meet other design criteria move to 
the next phase of development, which includes the initiation of studies in animals to support regulatory and 
safety requirements for clinical research in humans. The discovery phase can take years and the probability 
of any one candidate becoming a medicine is extremely low.
•
Early Development Phase
Early development includes initial testing for safety and efficacy and early analyses of manufacturing 
requirements. Safety testing is initially performed in laboratory tests and animals, as necessary. In general, 
the first human tests (often referred to as Phase 1) are conducted in small groups of subjects to assess 
safety and evaluate the potential dosing range. Subsequently, larger populations of patients are studied 
(Phase 2) to identify signs of efficacy while continuing to assess safety. In parallel, scientists work to identify 
safe, effective, and economical manufacturing processes. Long-term animal studies may continue to test for 
potential safety issues. Of the candidates that enter the early development phase, only a fraction move to 
the late development phase. The early development phase varies but can take several years to complete.
•
Late Development Phase
Late phase development projects (typically Phase 3) have met initial safety requirements and shown initial 
evidence of efficacy in earlier studies. As a result, these candidates generally have a higher likelihood of 
success and trials include larger patient populations to demonstrate safety and efficacy of the candidate in 
treating the disease. These studies are designed to demonstrate the benefit and risk of the potential new 
medicine and may be compared to competitive therapies, placebo, or both. Phase 3 studies are generally 
conducted globally, are costly, and are designed to support regulatory filings for marketing approval. The 
duration of Phase 3 testing varies by disease and may take years.
•
Submission Phase
Once a potential new medicine is submitted to regulatory agencies, the time to final marketing approval can 
vary from several months to several years, depending on the disease state, the strength and complexity of 
available data, the degree of unmet need, and the time required for the regulatory agency(ies) to evaluate 
the submission, which can depend on prioritization by regulators and other factors. There is no guarantee 
that a potential medicine will receive marketing approval, or that decisions on marketing approvals or 
indications will be consistent across geographic areas.
See Item 7, "Management's Discussion and Analysis—Executive Overview—Clinical Development Pipeline," for 
more details about our current product pipeline.
19

Raw Materials and Product Supply
Most of the principal materials we use in our manufacturing operations are available from more than one source. 
However, certain materials are procured from a single source. We seek to maintain sufficient inventory to provide 
reliability of production and manage unforeseen supply variability. However, various developments have led, and 
may in the future lead, to interruption or shortages in supply until we establish new sources, implement 
alternative processes, bring new manufacturing facilities online, or pause or discontinue product sales in one or 
more markets.
Our active ingredient manufacturing and finishing operations, including formulation, filling, assembling, delivery 
device manufacturing, and packaging, take place at sites in the U.S., including Puerto Rico, Ireland and a 
number of other sites throughout the world. To support anticipated demand for our current and prospective 
products, we have undertaken significant manufacturing expansion initiatives. Investments to increase our 
manufacturing capacity include sites in North Carolina, Wisconsin, Ireland, Germany, and two in Indiana. We 
also utilize and are expanding arrangements with third parties for certain active ingredient manufacturing, filling, 
finishing operations, and for device or component production and assembly. Among these third parties, we, and 
the pharmaceutical industry generally, depend on China-based suppliers for portions of our supply chain. U.S. 
federal lawmakers are considering legislation that is intended to limit supply chain reliance on China, including 
the proposed BIOSECURE Act. In addition, historically, geopolitical tensions between the U.S. and China have 
led to the imposition of tariffs, sanctions, and certain other business restrictions between the U.S. and China. In 
February 2025, the U.S. presidential administration imposed new tariffs on China and China responded with 
tariffs on select U.S. goods. If new legislation or additional trade restrictions are adopted or geopolitical tensions 
were to increase and disrupt our operations in, or related to, China, such disruption could significantly impact our 
business and results of operations. See Item 1A, "Risk Factors—Risks Related to Our Operations—Reliance on 
third-party relationships and outsourcing arrangements could adversely affect our business" and "Risk Factors—
Risks Related to Doing Business Internationally—Uneven economic growth or downturns or international trade 
and other global disruptions, geopolitical tensions, or disputes could adversely affect our business and operating 
results," for additional information.
We manage our supply chain (including our own facilities, contracted arrangements, and inventory) in a way that 
is intended to allow us to meet product demand while maintaining flexibility to reallocate manufacturing capacity 
to improve efficiency and respond to changes in supply and demand. To maintain supply of our products, we use 
a variety of techniques, including comprehensive quality systems, inventory management, and back-up sites.
However, pharmaceutical production processes are complex, highly regulated, and vary widely from product to 
product. Shifting or adding manufacturing capacity is a very lengthy process requiring significant capital 
expenditures, process modifications, and regulatory approvals. Accordingly, developments such as unanticipated 
demand, unplanned plant shutdowns, manufacturing or quality assurance difficulties at one of our facilities or 
contracted facilities, failure or refusal of a supplier or contract manufacturer to supply contracted quantities in a 
timely manner or at all, increases in demand on a supplier, or difficulties in predicting or variability in demand for 
and supply of our products and those of our competitors have led, and may in the future lead, to interruption or 
higher costs in the supply of certain products, product shortages, or pauses or discontinuations of product sales 
in one or more markets. For example, in periods of 2024, demand for our incretin medicines exceeded 
production. Supply and channel dynamics in some cases also contribute to variability in financial results for our 
products from period to period. Further, cost and wage inflation, availability of adequate capacity in global 
transportation, supply chain complexities, including consolidation therein, labor market issues, international 
tension and conflicts, uneven economic growth or downturns, an increase in overall demand in our industry for 
certain products and materials, and public health outbreaks, epidemics, or pandemics, have caused, and in the 
future may cause, delays or disruptions in and/or increased costs related to distribution of our medicines, the 
construction or acquisition of manufacturing capacity, procurement activity, and supplier or contract manufacturer 
arrangements, as well as other general business impacts. For more information on the additional risks we face in 
connection with any difficulties, disruptions, and shortages in the manufacturing, distribution, and sale of our 
products, see Item 1A, "Risk Factors—Risks Related to Our Business—Manufacturing, quality, or supply chain 
difficulties, disruptions, or shortages could lead to product supply problems."
20

Quality Assurance
Our success depends in great measure on customer confidence in the quality of our products and in the integrity 
of the data that support their safety and effectiveness. Product quality requires a total commitment to quality in all 
parts of our operations, including research and development, purchasing, facilities planning, manufacturing, 
distribution, and dissemination of information about our medicines. 
Quality of production processes involves strict control of ingredients, equipment, facilities, manufacturing 
methods, packaging materials, and labeling. We perform tests at various stages of production processes and on 
the final product in an effort to ensure that the product meets all applicable regulatory requirements and our 
internal standards. Additional testing for stability over the life of the product is also performed. These tests may 
involve chemical and physical chemical analyses, microbiological testing, testing in animals, or a combination 
thereof. Additional assurance of quality is provided by quality assurance groups that audit and monitor all aspects 
of quality related to pharmaceutical manufacturing procedures and systems in company operations and at third-
party suppliers.
Executive Officers of the Company
The following table sets forth certain information regarding our current executive officers.
The term of office for each executive officer expires on the date of the annual meeting of the board of directors, 
to be held on May 5, 2025 in connection with the company's annual meeting of shareholders, or on the date his 
or her successor is chosen and qualified. No director or executive officer has a "family relationship" with any 
other director or executive officer of the company, as that term is defined for purposes of this disclosure 
requirement. There is no understanding between any executive officer or director and any other person pursuant 
to which the executive officer was selected.
21

Name
Age
Titles and Business Experience
David Ricks
57
Chair, President, and Chief Executive Officer (CEO) (since 2017). Previously, Mr. Ricks held various 
leadership roles with Lilly, including senior vice president and president, Lilly Bio-Medicines. Mr. Ricks has 
28 years of service with Lilly.
Eric Dozier
58
Executive Vice President, Chief People Officer (since 2022). Previously, Mr. Dozier held various leadership 
roles with Lilly, including senior vice president, chief commercial officer for Loxo@Lilly, and vice president, 
global ethics and compliance officer. Mr. Dozier has 27 years of service with Lilly.
Anat Hakim
55
Executive Vice President, General Counsel and Secretary (since 2020). Prior to joining Lilly, Ms. Hakim 
was senior vice president, general counsel and secretary of WellCare Health Plans, Inc. (WellCare) from 
2016 to 2018, and executive vice president, general counsel and secretary of WellCare from 2018 to 2020. 
Prior to joining WellCare, she served as divisional vice president and associate general counsel of 
intellectual property litigation at Abbott Laboratories from 2010 to 2013 and divisional vice president and 
associate general counsel of litigation from 2013 to 2016. Ms. Hakim has five years of service with Lilly.
Edgardo Hernandez
50
Executive Vice President and President, Manufacturing Operations (since 2021). Previously, Mr. 
Hernandez held various leadership roles with Lilly, including senior vice president, global parenteral drug 
product, delivery devices and regional manufacturing, and vice president, Fegersheim operations. Mr. 
Hernandez has 20 years of service with Lilly.
Patrik Jonsson
58
Executive Vice President and President, Lilly Cardiometabolic Health and President, Lilly USA (since 
2024). Mr. Jonsson has held various leadership roles with Lilly, including, most recently, as Executive Vice 
President and President, Lilly Immunology and Lilly USA, and Chief Customer Officer. Previously, he 
served as senior vice president and president, Lilly Bio-Medicines and president and general manager, 
Lilly Japan. Mr. Jonsson has 34 years of service with Lilly.
Lucas Montarce
47
Executive Vice President and Chief Financial Officer (since 2024). Most recently, Mr. Montarce served as 
the president and general manager of Lilly’s Spain, Portugal, and Greece hub, a position he assumed in 
2024. Previously Mr. Montarce was group vice president, controller and chief financial officer of Lilly 
Research Laboratories, vice president, finance and chief financial officer, Lilly International, and vice 
president, finance and global chief financial officer, Elanco Health. Mr. Montarce has 23 years of service 
with Lilly.
Diogo Rau
50
Executive Vice President and Chief Information and Digital Officer (since 2021). Prior to joining Lilly, Mr. 
Rau was senior director of information systems and technology for retail and online stores of Apple Inc. 
from 2011 to 2021. Prior to his tenure at Apple, he served as a partner at McKinsey & Company. Mr. Rau 
has four years of service with Lilly.
Melissa Seymour
55
Executive Vice President, Global Quality (since 2024). Prior to joining Lilly, Ms. Seymour was the chief 
quality officer for Bristol Myers Squibb from 2022 to 2024. Before joining Bristol Myers Squibb, Ms. 
Seymour was also the chief quality officer at Biogen. Ms. Seymour has one year of service with Lilly.
Daniel Skovronsky, 
M.D., Ph.D.
51
Executive Vice President, Chief Scientific Officer and President, Lilly Research Laboratories and Lilly 
Immunology (since 2024). Prior to assuming his current role, Dr. Skovronsky served as Executive Vice 
President, Chief Scientific and Medical Officer, and President, Lilly Research Laboratories since 2018. Dr. 
Skovronsky has held other leadership roles with Lilly, including as senior vice president, clinical and 
product development and vice president, diabetes research. Dr. Skovronsky has 14 years of service with 
Lilly.
Jacob Van Naarden
40
Executive Vice President and President, Lilly Oncology (since 2021). Previously, Mr. Van Naarden served 
as chief executive officer-Loxo Oncology at Lilly, and chief operating officer-Loxo Oncology at Lilly. Mr. Van 
Naarden joined Lilly in 2019 when the company acquired Loxo Oncology, Inc., where he was the chief 
operating officer. In previous roles, Mr. Van Naarden worked in various biotechnology investing, operating, 
and advisory capacities, including positions with HealthCor Management, Aisling Capital, and Goldman 
Sachs. Mr. Van Naarden has six years of service with Lilly.
Anne White
56
Executive Vice President and President, Lilly Neuroscience (since 2021). Previously, Ms. White held 
various leadership roles with Lilly, including senior vice president and president, Lilly Oncology, vice 
president of Portfolio Management, Chorus, and Next Generation Research and Development. Ms. White 
has 29 years of service with Lilly.
Ilya Yuffa
50
Executive Vice President and President, Lilly International (since 2021). Previously, Mr. Yuffa held various 
leadership roles with Lilly, including senior vice president and president, Lilly Bio-Medicines, vice president 
of U.S. Diabetes, general manager of Italy Hub, and vice president, global ethics and compliance officer. 
Mr. Yuffa has 28 years of service with Lilly.
Human Capital Management
Our core values—integrity, excellence, and respect for people—shape our approach to attracting, retaining, 
engaging, and developing a diverse and highly skilled and ethical workforce. Our long-term success depends on 
our ability to continually discover or acquire, develop, and commercialize innovative medicines. We believe that 
fostering a positive culture that values the contributions of our talented colleagues helps drive our success.
22

We are committed to creating a safe, supportive, ethical, and rewarding work environment through intentional 
focus on our human capital management process, fairness and nondiscrimination in our employment practices, 
robust training and development opportunities, and competitive pay and benefits. We believe our dedication to 
promoting inclusion within our company makes Lilly a stronger and more innovative company. At all times, we 
seek to hire the most qualified candidate for each open position.
We regularly conduct confidential employee surveys to seek feedback from our workforce on a variety of topics. 
These results are reviewed and analyzed by our leaders to identify opportunities to adjust our practices and 
benefits to improve our employees' experience. As a result of our efforts, we believe that we have a high 
performing, cohesive workforce and that our employee relations are good.
At the end of 2024, we employed approximately 47,000 people, including approximately 25,000 employees 
outside the U.S. Our employees include approximately 11,000 people engaged in research and development 
activities.
Strategy and Oversight
We are committed to fairness and nondiscrimination in our employment practices, and we deeply value diverse 
backgrounds, skills, and global perspectives. Because dedication to human capital management is also a core 
component of our corporate governance, our board of directors regularly engages with management to monitor 
human capital management initiatives and progress as part of the overarching framework that guides how we 
attract, retain, engage, and develop a workforce that aligns with our values and mission. 
Employee Health and Safety
We strive to foster a healthy, vibrant work environment, which includes keeping our employees safe. We seek to 
create a companywide culture where best-in-class safety practices are consistently followed. To do this, we 
assess and continuously attempt to improve our companywide safety performance to promote the well-being of 
employees and to help safeguard communities where we operate. We believe a holistic approach and dedication 
to safety helps us be our best as we deliver on our company purpose to improve lives around the world.
Information Available on Our Website
Our company website is www.lilly.com. None of the information accessible on or through our website is 
incorporated into this Annual Report on Form 10-K. We make available through the website, free of charge, our 
company filings with the Securities and Exchange Commission (SEC) as soon as reasonably practicable after we 
electronically file them with, or furnish them to, the SEC. These include our Annual Reports on Form 10-K, 
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements, registration statements, and 
any amendments to those documents. The link to our SEC filings is investor.lilly.com/financial-information/
sec-filings.
Paper copies of the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that are filed 
with the SEC are available without charge upon written request to:
ELI LILLY AND COMPANY
c/o General Counsel and Secretary
Lilly Corporate Center
Indianapolis, Indiana 46285
In addition, the "Governance" section of our website includes our corporate governance guidelines, board of 
directors and committee information (including committee charters), and our articles of incorporation and bylaws. 
The link to our corporate governance information is lilly.com/leadership/governance.
We routinely post important information for investors in the “Investors” section of our website, www.lilly.com. We 
may use our website as a means of disclosing material, non-public information and for complying with our 
disclosure obligations under Regulation FD. Accordingly, investors should monitor the “Investors” section of our 
website, in addition to following our press releases, filings with the SEC, public conference calls, presentations, 
and webcasts. We and our executive officers may also use social media channels to communicate with investors 
and the public about our business, products and other matters, and those communications could be deemed to 
be material information. The information contained on, or that may be accessed through, our website or our or 
our executive officers' social media channels, is not incorporated by reference into, and is not a part of, this 
Annual Report on Form 10-K.
23

Item 1A.
Risk Factors
In addition to the other information contained in this Annual Report on Form 10-K, the following risk factors 
should be considered carefully in evaluating our company. It is possible that our business, financial condition, 
liquidity, cash flows, results of operations, reputation, and prospects could be materially adversely affected by 
any of these risks. Additional risks and uncertainties not presently known to us or that we currently believe to 
be immaterial could also adversely affect our business, financial condition, liquidity, cash flows, results of 
operations, reputation, and prospects.
Risks Related to Our Business and Industry
•
Pharmaceutical research and development is very costly and highly uncertain; we may not 
succeed in developing, licensing, or acquiring commercially successful products sufficient in 
number or value to replace revenues of products that have lost or will lose intellectual property 
protection or are displaced by competing products or therapies. 
There are many difficulties and uncertainties inherent in pharmaceutical research and development, the 
introduction of new products and indications, business development activities to enhance or refine our 
product pipeline, and commercialization of our products. 
There is a high rate of failure inherent in drug discovery and development. To bring a product from the 
discovery phase to market takes considerable time and entails significant cost. Failure can occur at any 
point in the process, including in later stages after substantial investment and following meaningful cost 
for manufacturing capabilities and inventory to prepare for launch. As a result, a significant portion of 
funds invested in research and development programs will not generate direct financial returns. New 
product candidates that appear promising in development or prior to being acquired may fail to reach the 
market or may have only limited commercial success because of efficacy or safety concerns, inability to 
obtain or maintain necessary regulatory approvals or payer reimbursement or coverage, failure to obtain 
placement on guidelines or recommendations published by third-party organizations that are 
commensurate with clinical data, the application of pricing controls, limited scope of approved uses, label 
changes, changes in the relevant treatment standards or the availability of newer, better, or more cost-
effective competitive products, difficulty or excessive costs to manufacture, insufficient infrastructure to 
support detection, diagnostic or other requisites for treatment, ineffectiveness in connecting with 
healthcare professionals, including digitally through virtual engagements, or infringement of the patents or 
intellectual property rights of others. We may also fail to allocate research and development resources 
efficiently, fail to pursue or invest sufficiently in product candidates or indications that may have been 
successful, or fail to optimally balance trial design, conduct, and speed to accomplish desired outcomes. 
Regulatory agencies establish high hurdles for the efficacy and safety of new products and indications. 
Delay, uncertainty, unpredictability, and inconsistency in drug approval processes across markets and 
agencies can result in delays in product launches, lost market opportunities, impairment of inventories, 
and other negative impacts. In addition, it can be very difficult to predict revenue growth rates of, or 
variability in demand for, new or future products and indications, which in some cases leads to difficulty 
meeting product demand or, on the other hand, lower volume growth, excess inventory and related 
financial charges.
We cannot state with certainty when or whether our products and indications now under development will 
be approved or launched; whether, if initially granted, such approval will be maintained; whether we will 
be able to develop, license, or otherwise acquire additional product candidates, indications, or products; 
or whether our products and indications, once launched, will be commercially successful. 
Through internal innovation and business development we must maintain a flow of successful products 
and indications or line extensions sufficient both to cover our substantial research and development costs 
and investments and to replace revenues that are lost as profitable products become subject to pricing 
controls, lose intellectual property exclusivity, or are displaced by competing products or therapies. Failure 
to timely replenish our product portfolio and pipeline would have a material adverse effect on our 
business, results of operations, cash flows, and financial position. Our dependence on, or focus in, one or 
more key products or product classes exacerbates this risk. In addition, the growth of our business and 
revenue base increases the risk that products developed or acquired by us may not provide adequate 
value to sustain further long-term growth.
We engage in various forms of business development activities to enhance or refine our product pipeline, 
including licensing arrangements, co-development agreements, co-promotion arrangements, distribution 
24

and promotion agreements, joint ventures, acquisitions, equity investments, and divestitures. There are 
substantial risks associated with identifying successful business development targets and consummating 
related transactions. Continued regulatory focus on business combinations in our industry, including by 
the Federal Trade Commission and competition authorities in Europe and other jurisdictions, and 
heightened competition for attractive targets has and could continue to delay, jeopardize, or increase the 
costs of our business development activities. In addition, failures or difficulties in integrating or retaining 
new personnel or the operations of the businesses, products, or assets we acquire (including related 
technology, commercial operations, compliance programs, information security, manufacturing, 
distribution, and general business operations and procedures) may affect our ability to realize the 
expected benefits of business development transactions and may result in our incurrence of substantial 
asset impairment or restructuring charges. We also may fail to generate the expected revenue and 
pipeline enhancement from business development activities due to limited diligence opportunities, 
unsuccessful clinical trials, issues related to the quality, integrity, or broad applicability of data, regulatory 
impediments, and manufacturing or commercialization challenges. Additionally, business development 
activity focused on new modalities may entail additional risks and costs. Business development 
transactions may not be completed in a timely manner (if at all), may not result in successful development 
outcomes or successful commercialization of any product, may give rise to legal proceedings or 
regulatory scrutiny, and may result in charges that negatively impact our financial position or results of 
operations in any given period.
See Item 1, "Business—Research and Development—Phases of New Drug Development," Item 7, 
"Management's Discussion and Analysis—Executive Overview—Clinical Development Pipeline" and Item 
8, "Financial Statements and Supplementary Data—Note 6: Inventories," for more details about our 
current product pipeline. 
•
We and our products face intense competition, including from multinational pharmaceutical 
companies, biotechnology companies, and lower-cost generic and biosimilar manufacturers, and 
such competition could have a material adverse effect on our business.
We compete with a large number of multinational pharmaceutical companies, biotechnology companies, 
and generic pharmaceutical companies and, in many cases, our products compete against the leading 
products of one or more of our competitors. To compete successfully, we must continue to deliver 
innovative, cost-effective products through internal innovation or business development that meet 
important medical needs, provide improved outcomes and a positive consumer experience for patients, 
and deliver value to payers. Our product revenues and prospects are adversely affected by patient 
access issues, the introduction by competitors of branded products that are first to market, have better 
marketplace access, have greater brand recognition or are perceived as superior by the marketplace, by 
generic or biosimilar versions of our branded products, and by generic or biosimilar versions of other 
products in the same therapeutic class as our branded products. Our revenues are also adversely 
affected by treatment innovations, including new or superior modalities, that eliminate or minimize the 
need for treatment with our existing products, and our existing products could be subject to decreased 
sales volumes, realized price reductions, or both. In some cases, the introduction of our own innovative 
products results in these adverse impacts for our preexisting products.
Regulation of generic and biosimilar products varies around the world and such regulation is complex and 
subject to ongoing interpretation and implementation by regulatory agencies and courts. Particularly for 
biosimilars, health authority guidelines and legislative actions could make it less burdensome for 
competitor products to enter the market and further incentivize uptake of biosimilars. Given the 
importance to us of marketed biologic products and those in our clinical-stage pipeline, such regulation 
could have a material adverse effect on our business. See Item 1, "Business—Competition" and 
"Business—Research and Development," for more details. Alternatively, actual or perceived failure of 
robust generic and biosimilar competition could propel governments to adopt additional policies and 
legislation that threaten our intellectual property, pricing of our products, or other aspects of our business.
Our success depends on a market that is observant of intellectual property rights and regulatory 
requirements. Developments that undermine that landscape can significantly impact our business and 
reputation. For example, we have seen an increase in the production, marketing, and sale of counterfeit, 
misbranded, adulterated, and compounded incretins that could materially impact us. Our actions intended 
to stop or prevent illegal sales of such medicines may be costly or ineffective. See Item 1, "Business—
Government Regulation of Our Operations and Products," for additional information on market risks 
related to counterfeit, misbranded, adulterated, and compounded medicines. If inadequately regulated, e-
25

commerce may increase the prevalence of dangerous counterfeit or diverted products and scams, 
potentially exposing patients to significant risks. Our reputation and business could suffer harm as a result 
of counterfeit or diverted drugs sold under our brand name, which may also impact our business and 
financial results.
In addition, we rely on our ability to attract, engage, and retain highly qualified and skilled scientific, 
technical, management, and other personnel in order to compete effectively. To continue to commercialize 
our products, and advance the research, development, and commercialization of additional modalities, 
indications, and product candidates, we have expanded, and will likely need to further expand, our 
workforce, both in and outside the U.S. We continue to face intense competition for qualified individuals 
from numerous multinational pharmaceutical companies, biotechnology companies, academic and other 
research institutions, as well as employers near our manufacturing and other facilities, which has and may 
continue to increase our labor costs. Our failure to compete effectively for talent could negatively affect 
sales of our current and any future approved products and indications, and could result in material 
financial, legal, commercial, or reputational harm to our business.
•
Our business is subject to increasing government price controls and other public and private 
restrictions on pricing, reimbursement, and access for our drugs, which could have a material 
adverse effect on our results of operations, reputation or business. 
Public and private payers continue to take aggressive steps to control their expenditures for 
pharmaceuticals by placing restrictions on pricing and reimbursement for, and patient access to, our 
medicines. These pressures have negatively affected, and we expect will continue to negatively affect, 
our consolidated results of operations. Governments and private payers worldwide have intensified their 
scrutiny of, and actions intended to address, pricing, reimbursement, and access to pharmaceutical 
products and are demanding greater commercial and clinical value from pharmaceutical companies in the 
form of strong product differentiation and demonstrated value. We continue to experience scrutiny on the 
pricing of current and potential diabetes, obesity, and Alzheimer's disease products due to payer concern 
over projected growth in these markets and, for certain of these drugs, the anticipated duration of 
treatment. We have also observed scrutiny of pricing and access disparities across jurisdictions.
Additional policies, regulations, legislation, or enforcement, including because of the regulatory priorities 
of the U.S. executive branch and regulatory authorities worldwide, could adversely impact our business 
and consolidated results of operations. For example, in August 2023, HHS selected Jardiance, which is 
part of our collaboration with Boehringer Ingelheim, as one of the first ten medicines subject to 
government-set prices in Medicare effective in 2026. In August 2024, HHS announced the government-
set prices for these first ten medicines with Jardiance subject to a 66% discount compared to the 2023 
U.S. calendar year list price for a 30-day supply and discounts for the other nine medicines ranging from 
approximately 38% to 79% below list price. Given our product portfolio, we expect additional products will 
be selected in future years, which would have the effect of accelerating revenue erosion. The effect of 
reducing prices and reimbursement for certain of our products could significantly impact our business and 
consolidated results of operations. Within the U.S., state level transparency initiatives, importation rules, 
reporting requirements, and mandated programs, including the establishment of drug affordability boards 
with the power to set upper payment limits on certain drugs in state-regulated plans, have also increased 
administrative costs, in some cases, compromised confidential business practices and otherwise 
detrimentally impacted our business. Certain states have also undertaken efforts to codify 340B contract 
pharmacies into statute or impose other state law mandates, which increase the cost of 340B programs. 
To date, several states have passed contract pharmacy legislation, which have been subject to various 
legal challenges. For more details, see Item 1, "Business—Regulations and Private Payer Actions 
Affecting Pharmaceutical Pricing, Reimbursement, and Access."
Further, restrictive or unfavorable pricing, coverage, or reimbursement determinations for our medicines 
or product candidates by governments, regulatory agencies, courts, or private payers, including in relation 
to the implementation of the IRA, reference pricing, and compulsory licensing, may adversely impact our 
business and financial results. We continue to experience additional pricing pressures, rebates, 
clawbacks, and other changes in reimbursement policies and programs resulting from periods of uneven 
economic growth or downturns or uncertainty, and the emergence or escalation of, and responses to, 
international tension and conflicts.
26

In addition, government price reporting and payment regulations are complex, and require ongoing 
assessment of the methods by which we calculate and report pricing. Calculation methodologies are 
inherently subjective and are subject to review and challenge by government agencies. If agencies 
disagree with our calculations, or the methodologies and assumptions underlying them, we may need to 
restate previously reported data and could be subject to financial and legal liability, which may be 
significant. In addition, changes to calculation methodologies could adversely affect our financial position 
or consolidated results of operations in any given period.
For more details, see Item 1, "Business—Regulations and Private Payer Actions Affecting Pharmaceutical 
Pricing, Reimbursement, and Access," Item 7, "Management's Discussion and Analysis—Executive 
Overview—Other Matters—Trends Affecting Pharmaceutical Pricing, Reimbursement, and Access and 
Certain Other Regulatory Developments" and Item 8, "Financial Statements and Supplementary Data—
Note 16: Contingencies."
•
Pharmaceutical products can develop safety or efficacy concerns, which could have a material 
adverse effect on our revenues, income, and reputation. 
Pharmaceutical products receive regulatory approval based on data obtained in controlled clinical trials of 
fixed duration and defined populations. After approval and launch, the products are used for longer 
periods of time by much larger numbers of patients, which may lead to identifying new safety or efficacy 
concerns. We and others (including regulatory agencies and private payers) collect extensive information 
on the efficacy and safety of our marketed products by continuously monitoring the use of our products in 
the marketplace. In addition, we or others (including our competitors, in some cases) may conduct post-
marketing clinical studies on efficacy and safety of our marketed products. New safety or efficacy data 
may result in product label changes, or other measures that could reduce the product's market 
acceptance and result in declining sales. Relatedly, safety or efficacy concerns raised about a product in 
the same class, compounded or counterfeit versions of our products, or products with the same 
mechanism of action as one of our products or product candidates could be imputed and have an adverse 
impact on the availability or commercial viability of our products or approval of product candidates. 
Serious safety or efficacy issues that arise after product approval have, and could in the future, result in 
voluntary or mandatory product recalls or withdrawals from the market. Safety issues have, and could in 
the future, result in costly product liability claims. Any of these outcomes could result in material financial, 
legal, commercial, or reputational harm to our business.
•
We derive a significant percentage of our total revenue from relatively few products and sell our 
products through consolidated supply chain entities, which subjects us to various risks. 
We derived direct product and/or collaboration and other revenues of more than $3 billion for each of 
Mounjaro, Verzenio, Trulicity, Zepbound, Jardiance (including Glyxambi, Synjardy, and Trijardy XR), and 
Taltz that collectively accounted for 75 percent of our total revenues in 2024. In particular, Mounjaro, 
Trulicity, and Zepbound accounted for 48 percent of our total revenues in 2024 and we expect 
cardiometabolic health products to represent a significant and growing portion of our business, revenues, 
and prospects. Loss of patent protection, changes in prescription rates, material product liability or pricing 
litigation, unexpected side effects or safety concerns, significant changes or fluctuations in demand, 
regulatory proceedings and investigations, negative publicity affecting doctor or patient confidence, 
pressure from existing or new competitive products, pipeline developments by us or our competitors, 
counterfeit and illegally compounded drugs, changes in labeling, pricing, and insufficient access, or 
reimbursement, or actual or perceived supply shortages or disruptions for these products or any of our 
other major products could materially impact our results of operations or result in significant and sudden 
declines or volatility in the trading price of our common stock and market capitalization.
In addition, in the U.S., most of our products are distributed through a limited number of wholesalers. If 
one of these significant wholesalers encounters financial or other difficulties or otherwise is unable to 
support distribution of our products, it could cause disruption to our supply chain or we might be unable to 
timely collect the amounts that the wholesaler owes us, which could negatively impact our results of 
operations. See Item 1, "Business—Marketing and Distribution," for more details. Challenges to U.S. retail 
pharmacies due to pharmacy benefit manager reimbursement pressures, among other things, have 
resulted in financial difficulties for some pharmacies that may impact patient experiences, lead to 
determinations by certain pharmacies to not carry one or more of our significant products or threaten the 
viability of these pharmacies, which could negatively impact our business and results of operations.
27

Moreover, the negotiating power of health plans, managed care organizations, pharmacy benefit 
managers, and other supply chain entities has increased due to consolidation, regulatory, and other 
market impacts, and they, along with governments, increasingly employ formularies to control costs and 
encourage utilization of certain drugs, including through the use of formulary inclusion, or favorable 
formulary placement. Such stakeholders have also increasingly imposed utilization management tools to 
limit access to our products. As these practices expand, including due to potential further consolidation of 
U.S. private third-party payers, we may face difficulty in obtaining or maintaining timely or adequate 
pricing or formulary placement of our products. We expect that consolidation of supply chain entities will 
continue to increase competitive and pricing pressures on pharmaceutical manufacturers.
Pharmacy benefit manager practices have come under increased scrutiny from U.S. policymakers at the 
federal and state level who have proposed legislation intended to address concerns regarding the impact 
that these intermediaries have on drug pricing and patients’ out of pocket costs. If promulgated, such 
legislation could have resultant implications, costs, or consequences for our business and how we interact 
with these entities. For additional information on pricing and reimbursement for our pharmaceutical 
products, see Item 1, "Business—U.S. Private Sector Dynamics" and "Regulations and Private Payer 
Actions Affecting Pharmaceutical Pricing, Reimbursement, and Access—U.S."
Risks Related to Our Intellectual Property
•
We depend on products with intellectual property protection for most of our revenues, cash flows, 
and earnings; the loss of effective intellectual property protection for certain of our products has 
resulted, and in the future is likely to continue to result, in rapid and severe declines in revenues 
for those products.
In the ordinary course of their lifecycles, our products lose significant patent protection and/or data 
protection in the U.S., as well as in key jurisdictions outside the U.S., after a specified period of time. For 
example, Trulicity will lose significant patent and remaining data protections in the next few years. Some 
products also lose patent protection as a result of successful third-party challenges. We have faced, and 
remain exposed to, generic competition following the expiration or loss of such intellectual property 
protection. 
For non-biologic products, loss of exclusivity typically results in the entry of one or more generic 
competitors, leading to a rapid and severe decline in revenues, especially in the U.S. Generic 
pharmaceutical companies have in some cases introduced a generic product before resolution of any 
related patent litigation. For biologics, loss of exclusivity may or may not result in the near-term entry of 
competitor versions (i.e., biosimilars) due to many factors, including development timelines, 
manufacturing challenges, and/or uncertainties regarding the regulatory approval pathways.
Our success depends in part on our ability to obtain and defend patent rights and other intellectual 
property rights that are important to the commercialization of our products and product candidates. The 
patent positions of pharmaceutical and biotechnology companies can be highly uncertain and often 
involve complex legal, scientific and factual questions. There is no assurance that the patents we are 
seeking will be granted or that the patents we hold will be found valid and enforceable if challenged. Third 
parties may challenge, invalidate, or circumvent our patents and patent applications relating to our 
products, product candidates, and technologies. In addition, our patent positions might not protect us 
against competitors with similar products or technologies because competing products or technologies 
may not be deemed to infringe our patents. Moreover, patents relating to particular products, uses, 
formulations, or processes may not preclude other manufacturers from employing alternative processes 
or marketing alternative products or formulations that compete with our patented products. Patents held 
by third-parties have also contributed, and may in the future contribute, to a decision by us to not pursue 
all potential indications for a product candidate. In addition, competitors or other third parties may assert 
claims that our activities infringe patents or other intellectual property rights held by them, or allege a 
third-party right of ownership in our existing intellectual property. See Item 7, "Management's Discussion 
and Analysis—Executive Overview—Other Matters—Patent Matters" and Item 1, "Business—Patents, 
Trademarks, and Other Intellectual Property Rights," for more details.
28

Patents relating to pharmaceutical products are often obtained early in the development process. Given 
the limited duration of patent and data protections, the speed with which we develop products, complete 
clinical testing, receive regulatory approvals, supply commercial products to the market, and obtain public 
and private payer access are important factors in recouping our development costs and generating 
financial returns, particularly given regulatory and market dynamics that have and may continue to put 
pressure on pricing, exclusivity periods, and competition. Delays in achieving these milestones in some 
cases may limit our ability to capitalize on the innovative medicines that we develop or acquire.
•
Our long-term success depends on intellectual property protection; if our intellectual property 
rights are invalidated, circumvented, or weakened, our business will be adversely affected. 
Our long-term success depends on our ability to continually discover or acquire, develop, and 
commercialize innovative medicines. Without strong intellectual property protection, we would be unable 
to generate the returns necessary to support our significant investments in research and development, as 
well as the other expenditures required to bring new medicines and indications to the market. Intellectual 
property protection varies throughout the world and is subject to change over time, depending on local 
laws and regulations. Changes to such laws, regulations, and enforcement practices could reduce 
protections for our innovative products and indications. For example, a proposal by the European 
Commission to revise the EU's general pharmaceutical legislation threatens the predictability and length 
of certain pharmaceutical intellectual property incentives, including by proposed reductions in data 
protection periods. Changes proposed by the USPTO and by certain bills in Congress to limit the number 
of, and differences between, patents obtained could also affect the scope of patent protection for our 
products in the U.S.
In recent years, U.S. government officials have proposed the exercise of "march-in-rights" and various 
other measures that, if enacted, could have a negative impact on our patent rights. If any such proposals 
are adopted, our business and results of operations could be adversely affected.
Also in the U.S., in addition to the process for challenging patents set forth in the BPCIA, which applies to 
biological products, the Hatch-Waxman Act provides generic companies substantial incentives to seek to 
invalidate our patents covering small molecule pharmaceutical products. As a result, we expect that our 
U.S. patents on major pharmaceutical products, including biologics, will continue to be routinely 
challenged in litigation and may not be upheld. In addition, a separate IPR process currently allows 
competitors to seek invalidation of patents at the USPTO without the protections of the BPCIA or Hatch-
Waxman Act. The use of IPR proceedings after the institution of litigation pursuant to the BPCIA or Hatch-
Waxman Act is currently a topic of debate among legislators and the future ability of our competitors to 
use IPR proceedings as an alternative to Hatch-Waxman Act or BPCIA litigation procedures to challenge 
our patents remains uncertain. The USPTO issued an interim procedure regarding the use of 
discretionary denials of IPR proceedings when there is parallel district court litigation. However, it is not 
clear how this interim procedure could affect the ability of our competitors to institute IPR proceedings 
after institution of litigation. If our patents are challenged through this expedited review process, even if 
we prevail in demonstrating the validity of our patent, our win may not preclude future challenges at the 
PTAB and is not binding on federal district courts, meaning the same patent can be challenged by other 
competitors.
We face many generic manufacturer challenges to our patents outside the U.S. as well. The entry of 
generic competitors typically results in rapid and severe declines in revenues. In addition, competitors or 
other third parties may claim that our activities infringe patents or other intellectual property rights held by 
them. If successful, such claims could result in our being unable to market a product in a particular 
territory or being required to pay significant damages for past infringement or royalties on future sales. In 
addition, intellectual property protection in certain jurisdictions is weak and we face heightened risks to 
our intellectual property rights in these jurisdictions, including competition with generic or counterfeit 
versions of our products at or relatively shortly after launch. See Item 1, "Business—Patents, Trademarks, 
and Other Intellectual Property Rights" and Item 8, "Financial Statements and Supplementary Data—Note 
16: Contingencies," for more details.
29

Risks Related to Our Operations
•
Failure, inadequacy, breach of, or unauthorized access to, our IT systems or those of our third-
party service providers, unauthorized access to our confidential information, or violations of data 
protection laws, could each result in material harm to our business and reputation.
Important confidential information owned by us, our business partners, or other third parties is stored in 
our information systems, networks, and facilities or those of third parties. This includes valuable trade 
secrets and intellectual property, clinical trial information, corporate strategic plans, marketing plans, 
customer information, and personal information, such as employee and patient information (collectively, 
confidential information). We also rely, to a large extent, on the efficient and uninterrupted operation of 
complex information technology systems, infrastructure, cloud technologies, and hardware (together, IT 
systems), some of which are within our control and some of which are within the control of third parties, to 
accumulate, process, store, and transmit large amounts of confidential information and other data. We are 
subject to a variety of evolving and developing laws and regulations around the world related to privacy, 
data protection, and data security. Maintaining the security, confidentiality, integrity, and availability of our 
IT systems and confidential information is vital to our business. Our failure, or the failure of our third-party 
service providers, to protect and maintain the security, confidentiality, integrity, and availability of our (or 
their) IT systems and confidential information and other data could significantly harm our reputation as 
well as result in significant costs, including those related to fines, penalties, litigation, and obligations to 
comply with applicable data breach laws. A cybersecurity incident could also impose business costs 
through lost productivity, disruption to manufacturing, and costs to remediate and recover from the 
incident.
IT systems are inherently vulnerable to system inadequacies, inadequate controls or procedures, 
operating failures, unauthorized access, service interruptions or failures, security breaches, malicious 
intrusions, theft, exfiltration, ransomware, or cyber-attacks from a variety of sources, which may remain 
undetected for significant periods of time. From time to time, we update, transition, acquire, or expand use 
of our and third-party IT systems, which may result in heightened vulnerability. Some third-party IT 
systems that are necessary for the operation of our business processes are maintained outside of our 
control but would impact business operations if compromised as a result of a cyber-attack. Vulnerabilities, 
inadequacies, or failures are in many cases more acute for IT systems associated with recently acquired 
businesses, and we may be unable to entirely address such vulnerabilities, inadequacies, or failures 
immediately after acquiring a business or ever. As a result, our newly acquired businesses are in some 
cases more vulnerable to failures, interruptions, breaches, intrusions, theft, exfiltration, or attacks. 
Cyber-attacks are growing in their frequency, sophistication, and intensity, and are becoming increasingly 
difficult to detect, mitigate, or prevent. Cyber-attacks come in many forms, including the deployment of 
harmful malware, exploitation of vulnerabilities (including those of third-party software or systems), denial-
of-service attacks, the use of social engineering (including phishing), and other means to compromise the 
confidentiality, integrity, and availability of IT systems, confidential information, and other data. Breaches 
resulting in the compromise, disruption, degradation, manipulation, loss, theft, exfiltration, destruction, or 
unauthorized disclosure or use of confidential information, or the unauthorized access to, disruption of, 
interference with, or attack of, our IT systems, products and services, can occur in a variety of ways, 
including negligent or wrongful conduct by employees or others with permitted access to our systems and 
information, or wrongful conduct by hackers, competitors, organized criminal groups, nation-states, state-
sponsored or affiliated groups, current or former company personnel, and other actors. Our third-party 
partners, including third-party providers of data hosting or cloud services, as well as suppliers, 
distributors, alliances, and other third parties with whom we may share data, face similar risks, which 
could affect us directly or indirectly. Unassociated third parties present further risks, including by 
propagating and amplifying misinformation related to our products, business, and industry, including 
through social media. We and others in the healthcare industry have been and continue to be targets for 
cyber-attacks, and the number of threats has increased over time. Numerous government agencies that 
monitor and regulate internet and cyber-crime have issued guidance, alerts and directives warning of 
software vulnerabilities that require immediate patching, malicious actors targeting healthcare-related 
systems and nation-state sponsored hacking designed to steal valuable information.
The failure, inadequacy, or breach of our IT systems or business processes or controls or procedures, the 
compromise, disruption, degradation, manipulation, loss, theft, exfiltration, destruction, or unauthorized 
access to, disclosure or use of, confidential information, or the unauthorized access to, disruption of, or 
interference with our products and services that rely on IT systems or business processes, could impair 
30

our ability to secure and maintain intellectual property rights; result in a product manufacturing interruption 
or failure, or in the interruption or failure of products or services that rely on IT systems or business 
processes; damage our operations, patient and other relationships, or reputation; undermine integration 
activities or otherwise delay or prevent the launch of products; result in unfavorable clinical trial results by 
virtue of incorrect or unreliable data; expose us to ransom payment, other demands, or paralyze our 
operations; give rise to legal liability and regulatory action under data protection and privacy laws; require 
disclosure to government authorities and/or regulators; expose us to civil and criminal investigations; and/
or cause us to lose trade secrets or other competitive advantages, which effects could endure for a long 
period of time. Unauthorized disclosure of personally identifiable information could further expose us to 
significant sanctions for violations of data privacy laws and regulations around the world, subject us to 
litigation, and damage public trust in our company. In addition, IT system security in jurisdictions outside 
the U.S. is weaker and may result in additional costs, uncertainties, and risks. 
We are subject to various laws and regulations globally regarding privacy and data protection, including 
laws and regulations relating to the collection, storage, handling, use, disclosure, transfer, and security of 
personal information. The legislative and regulatory environment regarding privacy and data protection is 
continuously evolving and the subject of significant attention by regulators and private parties globally. 
Regulators are imposing new data privacy and security requirements, including new and greater 
monetary fines or penalties for privacy violations, and jurisdictions where we operate have passed, or 
continue to propose, data privacy legislation and/or regulations. For example, we are subject to existing 
laws in the EU, United Kingdom, China, and U.S., all of which provide for substantial penalties for 
noncompliance. Other jurisdictions where we operate have passed, or continue to propose, similar 
legislation and regulations. Many jurisdictions, including the U.S., the EU, and China have passed, or 
expect to pass, restrictions on international data transfers. Compliance with current and future laws and 
regulations requires implementing potentially costly new controls and processes and may restrict certain 
core activities, including impacting our ability to carry out research and clinical studies across multiple 
geographies. Failure to comply with these current and future laws could result in significant penalties and 
reputational harm and could have a material adverse effect on our business and results of operations.
To date, system inadequacies, inadequate controls or procedures, operating failures, unauthorized 
access, service interruptions or failures, security breaches, malicious intrusions, theft, exfiltration, 
ransomware, cyber-attacks, and the compromise, disruption, degradation, manipulation, loss, theft, 
exfiltration, destruction, or unauthorized disclosure or use of confidential information, or the unauthorized 
access to, disruption of, interference with, or attack of, our IT systems, products and services that we 
have encountered have not had a material impact on our business strategy, results of operations or 
financial condition. We maintain cyber liability insurance; however, this insurance may not be sufficient to 
cover the financial, operational, legal, business, or reputational losses that may result from an interruption 
or breach of our IT systems. We continue to implement measures in an effort to protect, detect, respond 
to, remediate, and minimize or prevent these risks and to enhance the resiliency of our IT systems; 
however, these measures may not be successful, and we may fail to detect or remediate system 
inadequacies, inadequate controls or procedures, operating failures, unauthorized access, service 
interruptions or failures, security breaches, malicious intrusions, theft, exfiltration, ransomware, cyber-
attacks, or other compromises of our systems. Any of these events could result in material financial, 
operational, legal, business, or reputational harm to our business. For a discussion of our management of 
cybersecurity risks, see Item 1C, "Cybersecurity—Risk Management and Strategy" and "—Governance."
•
Manufacturing, quality, or supply chain difficulties, disruptions, or shortages could lead to 
product supply problems. 
We are continuing the significant expansion of our manufacturing capabilities and substantial investment 
in long-term supply agreements to fortify supply and support anticipated demand for our products. 
Pharmaceutical manufacturing is complex and highly regulated. Manufacturing or quality assurance 
difficulties at our facilities or those of our contractors and suppliers, the failure or refusal of a supplier or 
contract manufacturer to supply contracted quantities in a timely manner or at all, or increases in demand 
on a supplier with constrained capacity have resulted and may in the future result in delays and 
disruptions in the manufacturing, distribution, and sale of our products and/or product shortages, leading 
to lost revenue, reduced market opportunities, and the possibility of additional market entrants. In select 
cases, supply constraints may also lead to pauses, discontinuations, or other product availability issues in 
one or more markets, which could have a material adverse effect on our consolidated results of 
operations, cash flows, and reputation. Further, cost inflation and global transportation and logistics 
31

challenges, as well as tight labor markets, have caused, and in the future may cause, delays in, and/or 
increase costs related to, distribution of our medicines, the construction or other acquisition of additional 
manufacturing capacity, procurement activity, and supplier or contract manufacturer arrangements. These 
disruptions and challenges could result from actual or perceived quality, oversight, or regulatory 
compliance problems; natural disasters (including increased instances or severity of natural disasters or 
other events that may be due to climate change), public health outbreaks, epidemics, or pandemics; 
periods of uneven economic growth or downturns; emergence or escalation of, and responses to 
international tension and conflicts; equipment, mechanical, data, or IT system vulnerabilities, such as 
system inadequacies, inadequate controls or procedures, operating failures, unauthorized access, service 
interruptions or failures, security breaches, malicious intrusions, theft, exfiltration, ransomware or other 
cyber-attacks from a variety of sources; labor shortages; challenges and complexities in manufacturing 
new drug modalities; contractual disputes with our suppliers and contract manufacturers; vertical 
integration by competitors within our supply chain; or inability to obtain single-source or other raw or 
intermediate materials. Regional or single source dependencies may in some cases accentuate risks 
related to manufacturing and supply. For example, we, and the pharmaceutical industry generally, depend 
on China-based suppliers for portions of our supply chain, including integral chemical synthesis, reagents, 
starting materials, and ingredients. Finding alternative suppliers if and as necessary due to geopolitical 
developments or otherwise may not be feasible or could take a significant amount of time and involve 
significant expense due to the nature of our products and the need to obtain regulatory approvals which 
would cause disruptions to patients and detrimentally impact our business. See, Item 1A, "Risk Factors—
Risks Related to Our Operations—Reliance on third-party relationships and outsourcing arrangements 
could adversely affect our business," and "Risk Factors—Risks Related to Doing Business Internationally
—Uneven economic growth or downturns or international trade and other global disruptions, geopolitical 
tensions, or disputes could adversely affect our business and operating results" for more details. Supply 
and channel dynamics in some cases also contribute to variability in financial results for our products from 
period to period.
Difficulties in predicting or variability in demand and supply for our products and those of our competitors 
and the very long lead times necessary for the expansion and regulatory qualification of pharmaceutical 
manufacturing capacity have resulted, and in the future may result, in difficulty meeting demand, or 
disruptions, shortages, and higher costs in the supply of, our products. For example, at various times 
during 2024 demand for our incretin medicines exceeded production. While tirzepatide supply currently 
exceeds demand in the U.S., demand remains dynamic and could be impacted by a variety of factors. 
Supply considerations will continue to influence the timing and approach (including available 
presentations) of tirzepatide launches in new markets. Despite our ongoing efforts to meet projected 
future demand by obtaining additional internal and contracted manufacturing capacity, there can be no 
assurances that such capacity increases that we expect will be needed to meet future demand will be 
realized as expected or that we will meet demand in launched markets in the future. Delays or challenges 
in operationalizing additional manufacturing capacity could limit our ability to capitalize on demand for our 
products. Conversely, unexpected events that limit demand for our products or anticipated demand for 
product candidates would undermine our ability to realize the full benefit of significant capital expenditures 
that we have incurred, and expect to continue to incur, to augment manufacturing capacity, may render 
built or in process manufacturing capacity unnecessary, and may also subject us to contractual payment 
obligations, which may be significant. The foregoing risks and uncertainties could negatively impact our 
consolidated results of operations and reputation. See Item 1, "Business—Raw Materials and Product 
Supply" and Item 7, "Management's Discussion and Analysis—Financial Condition and Liquidity," for more 
details.
•
Reliance on third-party relationships and outsourcing arrangements could adversely affect our 
business. 
We rely on third parties, including suppliers, distributors, alliances, and collaborations with other 
pharmaceutical and biotechnology companies, and third-party service providers, for selected aspects of 
product and clinical development, manufacturing, commercialization, hosting of, and support for, IT 
systems, product distribution, and certain financial transactional processes. As examples, we outsource 
the day-to-day management and oversight of some of our clinical trials to contract research organizations, 
certain active ingredient manufacturing, finishing operations, and device or component production and 
assembly to contract manufacturing organizations, and the distribution of our products through logistics 
providers. To support anticipated demand for our current and prospective products, we have expanded 
relationships with contract manufacturing organizations and other third parties in recent periods.
32

Outsourcing involves many risks, including the risk that third parties may not perform to our standards or 
legal requirements; may not produce reliable results; may not perform in a timely manner; may not 
maintain the confidentiality, integrity, and availability of confidential and proprietary information relating to 
us, our clinical trial subjects, or patients; may experience disruption or fail to perform due to IT system 
vulnerabilities, such as inadequacies, inadequate controls or procedures, operating failures, unauthorized 
access, service interruptions or failures, security breaches, malicious intrusions, theft, exfiltration, 
ransomware or other cyber-attacks; may be unable to satisfy their commitments to us in which case we 
may not be able to achieve acceptable alternative sourcing; or may fail to perform at all. The foregoing 
risks may be heightened in jurisdictions outside the U.S., where we may have fewer alternative providers 
as well as face additional costs, uncertainties, and risks. Among other third-party providers, we, and the 
pharmaceutical industry generally, depend on China-based suppliers for portions of our supply chain. U.S. 
officials are increasingly considering legislation or other actions that are intended to limit supply chain 
reliance on China, including the BIOSECURE Act. In February 2025, the U.S. presidential administration 
imposed new tariffs on Chinese goods and China responded with tariffs on select U.S. goods. If enacted, 
additional measures could result in supply disruptions or delays, increase costs more significantly, or 
invite further retaliatory measures, any of which could negatively impact our business. See, Item 1A, "Risk 
Factors—Risks Related to Doing Business Internationally—Uneven economic growth or downturns or 
international trade and other global disruptions, geopolitical tensions, or disputes could adversely affect 
our business and operating results" for additional information. In some cases, product or indication 
approvals depend on the outcome of regulatory inspections of third parties on which we rely. Third-party 
inspection outcomes have and may in the future delay or prevent product launches and otherwise 
negatively affect our business. Failure of third parties to meet their contractual, regulatory, confidentiality, 
privacy, security, or other obligations to us, our clinical trial subjects, and our patients could have a 
material adverse effect on our business and could also result in non-compliance with legal or regulatory 
requirements or industry standards or subject us to reputational harm. 
•
Our use of artificial intelligence (AI) or other emerging technologies could adversely impact our 
business and financial results. 
We deploy AI and other emerging technologies in various facets of our operations and we continue to 
explore further use cases for AI. The rapid advancement of these technologies presents opportunities for 
us in research, manufacturing, commercialization, and other business endeavors but also entails risks, 
including that AI-generated content, analyses, or recommendations we utilize could be deficient, or that 
our competitors may more quickly or effectively adopt AI capabilities. Our use of AI or other emerging 
technologies could also exacerbate regulatory, cybersecurity and other significant risks.
Effective development, management, and use of AI technologies is novel and complex, and there are 
technical challenges associated with achieving desired levels of accuracy, efficiency, and reliability. The 
algorithms and models utilized in AI systems may have limitations, including biases, errors, or inability to 
handle certain data types or scenarios or to render explainable outputs. Furthermore, there are risks 
associated with the fact that the platforms providing AI models are in many cases owned and operated by 
emerging companies with less contractual and compliance sophistication. These factors may undermine 
our ability to effectively utilize AI or create competitive disadvantages should our competitors more 
skillfully make use of AI capabilities. Further, if we are unable to effectively manage the use of AI 
technologies by our employees, our confidential information, intellectual property, or reputation could be 
put at risk.
The emergence of AI and other technologies may exacerbate other risks, including those related to 
regulation, litigation, compliance issues, ethical concerns, confidentiality, and data privacy or security. For 
example, regulatory uncertainty related to AI or other emerging technologies may require significant 
resources to adjust business practices to comply with developing laws. Several governmental authorities 
have already proposed or enacted laws and other guidance governing AI, such as the EU Artificial 
Intelligence Act. These and other developing obligations may prevent or make it harder for us to conduct 
or enhance our business using AI, or lead to regulatory fines, penalties, or other liability. Further, use of AI 
technologies could lead to unintended consequences, such as data leakage, healthcare fraud and abuse, 
cybersecurity incidents, intellectual property infringement, or unintended biases. 
Risks Related to Doing Business Internationally
•
Uneven economic growth or downturns or international trade and other global disruptions, 
geopolitical tensions, or disputes could adversely affect our business and operating results. 
33

Economic slowdowns could lead to decreased utilization of our products, affecting our sales. Declining tax 
revenues and increased government spending on other programs attributable to uneven economic growth 
or downturns increase the pressure on governments to reduce healthcare spending, leading to increased 
control of drug prices or lower utilization. Additionally, some customers, including governments or other 
entities reliant upon government funding and cash-pay patients, may be unable to pay for our products 
fully or in a timely manner. Also, if our customers, suppliers, or collaboration partners experience financial 
difficulties, we could experience slower customer collections, greater bad debt expense, and performance 
defaults by suppliers or collaboration partners. Similarly, uneven economic growth or downturns could 
limit our ability to access capital markets.
In addition, significant portions of our business are conducted in Europe, Asia, and other international 
geographies. Trade and other global disputes and interruptions, including related to tariffs, trade 
protection measures, import or export licensing requirements, the imposition of trade sanctions or similar 
restrictions by the U.S. or other governments, international tension and conflicts, as well as economic 
stagnation, cost inflation, strains on global transportation, manufacturing, and labor markets, and public 
health outbreaks, epidemics, or pandemics affect our ability to do business. Among other risks, the use of 
tariffs and other trade restrictions increase costs and may impact clinical trials or sales of our products, or 
otherwise complicate aspects of our business. In particular, tensions between the U.S. and China, which 
have already led to a series of tariffs and sanctions, as well as other business restrictions, could further 
escalate based on additional trade restrictions or retaliation thereto. In February 2025, the U.S. 
presidential administration imposed new tariffs on Chinese goods and China responded with tariffs on 
select U.S. goods. Additionally, tariffs were proposed or threatened with respect to other jurisdictions, 
including Mexico, Canada and Europe. If geopolitical tensions were to increase and disrupt our operations 
in, or related to, China or other major international geographies, such disruption would significantly impact 
our business. See Item 1A, "Risk Factors—Risks Related to Our Operations—Reliance on third-party 
relationships and outsourcing arrangements could adversely affect our business," for additional 
information. As a further example, the financial impact of higher energy prices, defense spending, and 
geopolitical and economic disruptions, has further exacerbated financial pressures on governments with 
single-payer or government funded healthcare systems, leading to increased impetus for increases in 
rebates, clawbacks, and other reforms to reimbursement systems, particularly in Europe. These and 
similar events have adversely affected, and may continue to adversely affect, us, our business partners, 
and our customers. For more details, see Item 1, "Business—Regulations and Private Payer Actions 
Affecting Pharmaceutical Pricing, Reimbursement, and Access."
In addition to developments related to our business or financial results, or those of our competitors, 
uneven economic growth, downturns, or other negative global developments, could also undermine our 
growth or result in significant and sudden declines in the trading price of our common stock and market 
capitalization. 
•
Changes in foreign currency rates, interest rate risks, and inflation or deflation affect our results 
of operations.
As a global company, we face foreign currency risk exposure from fluctuating currency exchange rates, 
interest rate risk from our exposure to floating and variable interest rates, and existing and expected rates 
of inflation or deflation in the U.S. and other jurisdictions, each of which impacts our results of operations. 
In recent periods, significant fluctuations in currency rates and inflation have impacted our results of 
operations. We are a net receiver of foreign currencies, and our results of operations are adversely 
impacted when the U.S. dollar is strong compared to foreign currencies. Further, in the event of an 
extreme devaluation of local currency in a particular market in which we operate, the price of our products 
could become unsustainable in the relevant market. Inflationary pressures in recent periods have also 
negatively impacted us and may continue to negatively impact us in various ways, including cost inflation, 
higher labor costs, and other higher expenses, with some of these higher expenses due in part to policy 
actions intended to curb inflation. See Item 7, "Management's Discussion and Analysis—Financial 
Condition and Liquidity" and Item 8, "Financial Statements and Supplementary Data—Note 1: Summary 
of Significant Accounting Policies and Implementation of New Financial Accounting Standards," for more 
details.
34

Risks Related to Litigation and Government Regulation
•
We are party to litigation and investigations related to our products, how we price or 
commercialize our products, and other aspects of our business, which could adversely affect our 
business, and we are self-insured for such matters. 
We are subject to a substantial number of claims, litigation, and investigations involving various current 
and historical products and practices. These claims relate to how we commercialize and/or how we price 
our products, product safety, our operations as well as contractual matters and other disputes. We have 
also filed lawsuits and taken other legal actions to protect our intellectual property and address unlawful 
practices. See Item 8, "Financial Statements and Supplementary Data—Note 16: Contingencies," for 
more information on certain matters. Like many companies in our industry, from time to time 
investigations into aspects of our business include inquiries, subpoenas, and other types of information 
demands from government and regulatory authorities. There continues to be a significant volume of 
government and regulatory investigations and litigation against companies operating in our industry, as 
well as robust regulatory enforcement. Because of the nature of pharmaceutical products, we are, and 
could in the future become, subject to large numbers of product liability claims for our previous, current, or 
future products, or to further litigation or investigations, including related to product safety and pricing or 
other commercial practices. Some of these matters involve numerous plaintiffs and parties seeking large 
or indeterminate financial claims and may remain unresolved for several years. Such matters could 
negatively impact our reputation, affect our results of operations or require us to recognize substantial 
charges to resolve and, if involving marketed products, could adversely affect sales of the product and our 
consolidated results of operations in any given period. Where we are the plaintiff or complainant, we may 
be unsuccessful in protecting our intellectual property or mitigating harm to us from unlawful practices. 
Due to a very restrictive market for liability insurance, we are predominately self-insured for litigation 
liability losses for all of our products, as well as for litigation or investigations related to our pricing 
practices or other similar matters. 
•
We are subject to evolving and complex tax laws, which may result in additional liabilities and 
affect our results of operations. 
We are subject to income taxes in the U.S. and numerous other jurisdictions, and in the course of our 
business, we make judgments about the expected tax treatment of various transactions and events. 
Changes in tax laws, regulations, administrative practices, principles, disclosure obligations, and 
interpretations, as well as events that differ from our expectations, have affected and may adversely affect 
our effective tax rates, cash flows, and/or results of operations. In addition, tax authorities in the U.S. and 
other jurisdictions in which we do business routinely examine our tax returns and are expected to 
increase their scrutiny and examinations of cross-border tax issues, which could unfavorably impact our 
results of operations and cash flows. Further, actions taken with respect to tax-related matters by 
associations such as the Organisation for Economic Co-operation and Development (OECD) and the 
European Commission could influence tax laws in countries in which we operate, such as the enactments 
by both EU and non-EU countries of a global minimum tax. Modifications to key elements of the U.S. or 
international tax framework could have a significant impact on our effective tax rate, results of operations, 
and cash flows. See Item 7, "Management's Discussion and Analysis—Executive Overview—Other 
Matters—Tax Matters" and Item 8, "Financial Statements and Supplementary Data—Note 14: Income 
Taxes," for more details.
•
Regulatory compliance problems could be damaging to the company. 
The marketing, promotional, and pricing practices of pharmaceutical manufacturers, as well as the 
manner in which manufacturers interact with purchasers, prescribers, and patients, are subject to 
extensive scrutiny and regulation. New business practices or commercial capabilities subject us to 
additional scrutiny over compliance with applicable regulatory schemes and compliance obligations or 
expose us to new regulatory schemes and compliance obligations entirely. Many companies, including us, 
are and have been subject to investigations, litigation, and claims related to these practices asserted by 
governmental authorities and other parties. These investigations, litigation, and claims have resulted in 
substantial expense and other significant consequences for pharmaceutical manufacturers, including 
criminal charges and fines, penalties, or other monetary or non-monetary remedies, including exclusion 
from U.S. federal and other healthcare programs. Such investigations, litigation, and claims remain 
intense as a result of evolving U.S. and foreign regulatory priorities. In addition, regulatory issues and 
evolving standards concerning compliance with cGMP and quality assurance, including increased scrutiny 
35

around excipients, potential impurities such as nitrosamines, and chemicals important to pharmaceutical 
manufacturing, in some cases lead to regulatory and legal actions, product recalls and seizures, fines and 
penalties, interruption of production leading to product shortages, import bans or denials of import 
certifications, delays or denials in new product approvals or line extensions or supplemental approvals of 
current products pending resolution of the issues, and reputational harm, any of which adversely affects 
our business. Regulatory oversight of the pharmaceutical industry entails judgment and interpretation, 
which can result in varying interpretations of laws and regulations by health and other authorities. In 
addition, changing political leadership, including the new presidential administration and regulatory 
leadership in the U.S., may propose, enact, or pursue policy, regulatory, and enforcement changes that 
create additional uncertainty for our business. 
Regulatory compliance and processes in jurisdictions outside the U.S. may be particularly unpredictable 
and result in additional costs, uncertainties, and risks. U.S. and foreign governmental authorities are 
actively promulgating additional regulations and guidance that impact many aspects of our operations. 
These regulations are in some cases advanced with short notice. New regulations may undermine our 
ability to achieve business objectives, may be costly to implement, may provide only limited time for 
compliance, may change accounting and reporting standards, and may carry significant penalties for non-
compliance. See Item 1, "Business—Government Regulation of Our Operations and Products," for more 
details. 
We rely on the FDA and other regulatory bodies for appropriate oversight, administration and enforcement 
across our industry, anyone marketing or purporting to market medicines, and public health. Oversight, 
administrative, and enforcement changes, delays, inconsistencies, lapses, and failures could materiality 
impact our business and reputation. See Item 1, "Business—Government Regulation of Our Operations 
and Products," for additional information on regulatory risks, including as related to counterfeit, 
misbranded, adulterated, and compounded medicines.
Furthermore, there is an increased focus by foreign, federal, state, and local regulatory and legislative 
bodies on legislation and policies relating to climate change, regulating greenhouse gas emissions, 
carbon taxes, emissions trading schemes, sustainability, human rights and related due diligence, 
workforce matters, and disclosure regarding the foregoing, many of which may be ambiguous, 
inconsistent, dynamic or conflicting. We have experienced increased compliance costs, legal costs, and 
expenses related to such new or changing legal or regulatory requirements. Moreover, compliance with 
any such legal or regulatory requirements requires us to devote time and attention, which may be 
substantial, to these matters. In addition, we may still be subject to penalties or potential litigation if such 
laws and regulations are interpreted or applied in a manner inconsistent with our practices.
Additionally, there is increased attention from the media, stockholders, activists, political leadership, 
regulatory authorities, and other stakeholders on climate, social, and other sustainability matters. The 
perception that we or others in our industry or supply chain have failed to act in an appropriate manner, 
whether or not valid, results in publicity that can negatively affect our business, brand, and reputation, as 
well as result in increased scrutiny from political leadership, legislators and regulatory authorities. For 
example, negative perception of inclusion initiatives, whether due to a perceived over- or under-pursuit of 
such initiatives, may result in issues hiring or retaining employees, as well as potential investigations, 
enforcement actions, litigation, reputational harm, or other adverse impacts. Moreover, from time to time 
we establish and publicly announce goals, initiatives, and commitments, including on climate, social, and 
other sustainability matters. Our ability to achieve any of these stated goals, targets or objectives is 
subject to numerous factors and conditions, many of which are outside our control. Examples of such 
factors include evolving regulatory requirements affecting sustainability standards or disclosures or 
imposing different requirements, and the availability of suppliers that can meet our sustainability and other 
goals. If we fail to achieve, are perceived to have failed or been delayed in achieving, or improperly report 
our progress toward achieving these goals, initiatives, and commitments, it could negatively affect our 
reputation, brand, or investor confidence, and expose us to investigations, enforcement actions and 
litigation. Conversely, our pursuit or achievement of such goals, initiatives, and commitments may not be 
viewed favorably by certain stakeholders and could increase scrutiny of our business, negatively affect 
our reputation, or expose us to investigations, enforcement actions and litigation.
36

Item 1B.
Unresolved Staff Comments
None.
Item 1C.
Cybersecurity
Risk Management and Strategy
We manage cybersecurity threats as part of our oversight, evaluation, and mitigation of enterprise-level risks. 
We have based our cybersecurity program on industry frameworks, including, among others, the U.S. 
National Institute of Standards and Technology Cybersecurity Framework, with the goal of building enterprise 
resilience against an evolving landscape of cybersecurity threats and responding to cybersecurity threats as 
they materialize. Our program includes monitoring, identification, assessment, and management components, 
as well as information sharing and escalation components designed to inform management and the board of 
directors of prospective risks and developments.
Our information security program encompasses functions dedicated to both proactive and reactive 
management of cybersecurity threats. We implement our cybersecurity program internally through established 
policies, standards, reference architectures, and the use of enterprise security services that focus on 
emerging and ongoing cybersecurity risks. Our proactive management of cybersecurity risks entails many 
actions, including the maintenance of system access restrictions, utilization of data security technology, 
employee education and training initiatives, and retention of cyber liability insurance, among other measures. 
We regularly engage third-party auditors and consultants and leverage our internal audit function to assess 
various facets of our cybersecurity program. These engagements include completion of industry-standard 
assessments or certifications, maturity model reviews, threat simulations, as well as internal reviews to 
assess the effectiveness of our cybersecurity processes. We also maintain enterprise-wide processes to 
oversee and identify risks from cybersecurity threats associated with our use of third-party service providers. 
As examples, we generally review current and prospective third-party service providers for unacceptable 
cybersecurity risks, negotiate contractual provisions that require the establishment of third-party cybersecurity 
controls, and deploy communications security measures to protect third-party communications. For 
companies we acquire, the integration process includes plans for alignment with relevant information security 
policies and procedures and timelines for implementation.
We assess cybersecurity contingencies within our overall business continuity risk management planning 
process. Our Information Security team utilizes various tools to prevent, detect, monitor, and react to 
cybersecurity threats. Our Incident Response Playbook outlines processes, roles, responsibilities, 
engagements, escalations, notifications, and other communications applicable to the assessment, mitigation, 
and remediation of realized cybersecurity events. The nature and assessed risk of a realized cybersecurity 
event dictates the pace and extent of relevant processes, escalations, and communications, including an 
evaluation of any necessary or required disclosure. Roles and escalation paths range from within the 
Information Security team up to the Executive Committee, and the board of directors and its committees, as 
appropriate. 
We describe risks faced by us from identified cybersecurity threats in Item 1A, "Risk Factors—Risks Related 
to Our Operations—Failure, inadequacy, breach of, or unauthorized access to, our IT systems or those of our 
third-party service providers, unauthorized access to our confidential information, or violations of data 
protection laws, could each result in material harm to our business and reputation", "Risk Factors—Risks 
Related to Our Operations—Manufacturing, quality, or supply chain difficulties, disruptions, or shortages could 
lead to product supply problems", "Risk Factors—Risks Related to Our Operations—Reliance on third-party 
relationships and outsourcing arrangements could adversely affect our business", and "Risk Factors—Risks 
Related to Our Operations—Our use of artificial intelligence (AI) or other emerging technologies could 
adversely impact our business and financial results."
37

Governance
Management, under the supervision of our Chief Information Security Officer (CISO), is directly responsible 
for assessing and managing cybersecurity risks and otherwise implementing our cybersecurity program, 
which includes our Incident Response Playbook. The CISO reports directly to our Chief Information and 
Digital Officer (CIDO), who is a member of our Executive Committee and leads our information technology, 
cybersecurity, digital health, and advanced analytics and data science functions. Our CIDO in turn regularly 
updates our Executive Committee on cybersecurity matters. Our CISO and CIDO have significant experience 
managing global cybersecurity threats across the pharmaceutical, technology, entertainment, and defense 
industries. In addition to providing regular updates to the CIDO and his staff, the CISO is a member of our 
Executive Information Security Governance function (EISG), which meets regularly and is composed of 
executive and senior leadership from a variety of functions, including information security, legal, finance, audit, 
and ethics and compliance to assess and manage cybersecurity developments and risks and our internal 
programs. Each of the CIDO, the CISO and the EISG may call upon business and legal stakeholders across 
our company to manage cybersecurity threats and incidents.
The audit committee of our board of directors is responsible for oversight of the company's programs, policies, 
procedures, and risk management activities related to information security and data protection. The audit 
committee meets regularly with our CIDO and CISO to discuss threats, risks, and ongoing efforts to enhance 
cyber resiliency, as well as changes to the broader cybersecurity landscape. In addition, the ethics and 
compliance committee supports the audit committee and board in oversight of legal and regulatory 
compliance. Our board of directors also regularly participates in presentations on cybersecurity and 
information technology. In addition to regular presentations, management promptly updates our board of 
directors regarding significant threats and incidents as they arise.
Item 2. Properties
Our principal domestic and international executive offices are located in Indianapolis. We own several 
production, distribution, and corporate administrative sites in the United States (U.S.), including Puerto Rico. 
Major production sites include facilities in Indiana, North Carolina, Puerto Rico, and New Jersey. We own 
several production and distribution sites in Europe and Asia. Major production sites include facilities in Ireland, 
France, Spain, Italy, China, and Japan. Additional U.S. and international production facilities and expansions 
of production facilities are expected to come online in future periods.
In the U.S., our research and development facilities primarily consist of owned facilities located in Indiana and 
leased sites in California, Massachusetts, New York, and Colorado. Outside the U.S., we own a small 
research and development facility in Spain and lease a small site in Singapore.
We believe that none of our properties is subject to any encumbrance, easement, or other restriction that 
would detract materially from its value or impair its use in the operation of the business. The buildings we own 
are of varying ages and in good condition.
Item 3. Legal Proceedings
We are a party to various currently pending legal actions, government investigations, and environmental 
proceedings. Information pertaining to legal proceedings is described in Item 8, "Financial Statements and 
Supplementary Data - Note 16: Contingencies," and incorporated by reference herein. 
Item 4. Mine Safety Disclosures
Not applicable.
38

Part II
Item 5.
Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer 
Purchases of Equity Securities
Information relating to the principal market for our common stock, dividends, and related stockholder matters 
is described in Item 7, "Management's Discussion and Analysis of Results of Operations and Financial 
Condition" and Item 12, "Security Ownership of Certain Beneficial Owners and Management and Related 
Stockholder Matters." This information is incorporated herein by reference.
As of February 14, 2025, there were approximately 17,903 holders of record of our common stock based on 
information provided by EQ Shareowner Services, our transfer agent. Our common stock is listed under the 
ticker symbol LLY on the New York Stock Exchange (NYSE). 
The following table summarizes the activity related to repurchases of our equity securities during the three 
months ended December 31, 2024:
Period
Total Number of
Shares Purchased
(in thousands)
Average Price Paid
per Share
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs
(in thousands)
Approximate Dollar Value
of Shares that May Yet Be
Purchased Under the
Plans or Programs
(dollars in millions)
October 2024
 
717 $ 
877.48  
717 
$1,350.0
November 2024
 
1,665  
810.58  
1,665 
—
December 2024
 
—  
—  
— 
15,000.0
Total
 
2,382 
830.70  
2,382 
During the three months ended December 31, 2024, we repurchased the remaining $1.98 billion of shares 
under our $5.00 billion share repurchase program that our board authorized in May 2021. Our board 
authorized a $15.00 billion share repurchase program in December 2024. No shares were repurchased under 
this new program as of December 31, 2024. 
39

PERFORMANCE GRAPH
The following graph compares the return on Lilly stock with that of the Standard & Poor's (S&P) 500 Stock 
Index and our peer group for the years 2020 through 2024. The graph assumes that, on the last business day 
of 2019, a person invested $100 each in Lilly stock, the S&P 500 Stock Index, and the peer group's collective 
common stock. The graph measures total shareholder return, which takes into account both stock price and 
dividends. It assumes that dividends paid by a company are immediately reinvested in that company's stock. 
Value of $100 Invested on Last Business Day of 2019 Comparison of Five-Year Cumulative Total 
Shareholder Return Among Lilly, S&P 500 Stock Index, and Peer Group(1)
Lilly
Peer Group
S&P 500
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-24
$100
$200
$300
$400
$500
$600
$700
Lilly
Peer Group
S&P 500
Dec-19
$ 100.00 
$ 100.00 
$ 100.00 
Dec-20
 
131.06 
 
102.07 
 
118.40 
Dec-21
 
217.66 
 
121.90 
 
152.39 
Dec-22
 
292.18 
 
133.61 
 
124.79 
Dec-23
 
470.13 
 
132.57 
 
157.59 
Dec-24
 
626.69 
 
132.19 
 
197.02 
(1) 
We constructed the peer group as the industry index for this graph. It is comprised of the following companies in the pharmaceutical and 
biotechnology industries: AbbVie Inc.; Amgen Inc.; AstraZeneca PLC; Biogen Inc.; Bristol-Myers Squibb Company; Gilead Sciences Inc.; 
GlaxoSmithKline plc; Johnson & Johnson; Merck & Co., Inc.; Novartis AG; Novo Nordisk A/S; Pfizer Inc.; Roche Holding AG; Sanofi S.A.; and 
Takeda Pharmaceutical Company Limited. The peer group used for performance benchmarking aligns with the peer group used for executive 
compensation purposes for 2024.
40

Item 6.   
[Reserved]
Item 7.
Management's Discussion and Analysis of Results of Operations and Financial 
Condition
(Tables present dollars in millions, except per-share data)
General
Management's discussion and analysis of results of operations and financial condition is intended to assist the 
reader in understanding and assessing significant changes and trends related to our results of operations and 
financial position. This discussion and analysis should be read in conjunction with Item 8, "Financial 
Statements and Supplementary Data." Certain statements in this Item 7 constitute forward-looking 
statements. Various risks and uncertainties, including those discussed in "Forward-Looking Statements" and 
Item 1A, "Risk Factors," may cause our actual results, financial position, and cash generated from operations 
to differ from these forward-looking statements.
EXECUTIVE OVERVIEW
This section provides an overview of our financial results, our clinical development pipeline, and other matters 
affecting our company and industry. 
Financial Results
The following table summarizes certain financial information:
Year Ended December 31,
Percent 
Change
2024
2023
Revenue
$ 
45,042.7 $ 
34,124.1 
32
Net income
 
10,590.0  
5,240.4 
102
Earnings per share - diluted
 
11.71  
5.80 
102
Revenue increased in 2024 driven by increased volume and, to a lesser extent, higher realized prices. The 
increase in revenue in 2024 was primarily driven by Mounjaro, Zepbound, and Verzenio, partially offset by 
Trulicity.
Net income and earnings per share increased in 2024, primarily due to higher gross margin, partially offset by 
increased research and development expenses, marketing, selling, and administrative expenses, and asset 
impairment, restructuring, and other special charges.
See "Results of Operations" for additional information.
41

Clinical Development Pipeline
Our long-term success depends on our ability to continually discover or acquire, develop, and commercialize 
innovative medicines. We currently have approximately 55 new medicine candidates in clinical development 
or under regulatory review, and a larger number of projects in the discovery phase.
The following select new molecular entities (NMEs) and new indication line extension (NILEX) products are 
currently in Phase 2 or Phase 3 clinical trials or have been submitted for regulatory review or have recently 
received regulatory approval in the United States (U.S.), European Union (EU), or Japan. The table reflects 
the status of these NMEs and NILEX products, including certain other developments, up to the time of the 
filing of this Annual Report on Form 10-K:
Cardiometabolic Health
Tirzepatide 
(Mounjaro, Zepbound)
Obesity
Approved
Approved in the U.S. and the EU in 2023 
and in Japan in 2024. Phase 3 trials are 
ongoing.
Obstructive sleep apnea 
(OSA)
Approved
Approved in the U.S. and the EU in 2024. 
Heart failure with 
preserved ejection fraction
Submitted
Submitted in the U.S. and the EU in 
2024. 
Cardiovascular outcomes 
in type 2 diabetes
Phase 3
Phase 3 trial is ongoing.
Morbidity and mortality in 
obesity
Phase 3
Phase 3 trial is ongoing.
Higher doses
Phase 2
Phase 2 trial is ongoing.
Metabolic dysfunction-
associated steatohepatitis 
Phase 2
Announced in 2024 that a Phase 2 trial 
met the primary endpoint.
Insulin Efsitora Alfa
Type 1 and type 2 diabetes Phase 3
Announced in 2024 that five Phase 3 
trials met the primary endpoints.
Lepodisiran
Atherosclerotic 
cardiovascular disease 
Phase 3
Phase 3 trial initiated in 2024.
Orforglipron
Obesity
Phase 3
Phase 3 trials are ongoing.
OSA
Phase 3
Phase 3 trials initiated in 2024.
Type 2 diabetes
Phase 3
Phase 3 trials are ongoing.
Retatrutide
Cardiovascular / renal 
outcomes
Phase 3
Phase 3 trials initiated in 2024.
Obesity, osteoarthritis, 
OSA
Phase 3
Phase 3 trials are ongoing.
Type 2 diabetes
Phase 3
Phase 3 trials initiated in 2024.
Bimagrumab
Obesity
Phase 2
Phase 2 trial is ongoing.
Eloralintide
Obesity
Phase 2
Phase 2 trial initiated in 2024.
GLP-1R NPA II
Obesity
Phase 2
Phase 2 trial initiated in 2024.
Mazdutide
Obesity
Phase 2
Phase 2 trial is ongoing.
Muvalaplin
Cardiovascular disease
Phase 2
Announced in 2024 that a Phase 2 trial 
met the primary and secondary 
endpoints. 
Solbinsiran
Cardiovascular disease
Phase 2
Phase 2 trial is ongoing.
Volenrelaxin
Heart failure
Discontinued In 2025, Phase 2 trial was discontinued 
based on clinical data readout.
Compound
Indication/Study
Status 
Developments
42

Immunology
Mirikizumab (Omvoh)
Crohn's disease
Approved
Approved in the U.S. and the EU in 2025. 
Submitted in Japan in 2024. 
Lebrikizumab(1)
AR (perennial allergens)
Phase 3
Phase 3 trial initiated in 2024.
CRSwNP
Phase 3
Phase 3 trial initiated in 2024.
CD19 Antibody
Multiple sclerosis
Phase 2
Phase 2 trial initiated in 2024.
Eltrekibart
Hidradenitis suppurativa
Phase 2
Phase 2 trial is ongoing.
Ulcerative colitis
Phase 2
Phase 2 trial initiated in 2024.
KV1.3 Antagonist
Psoriasis
Phase 2
Phase 2 trial initiated in 2024.
MORF-057
Crohn's disease
Phase 2
Acquired in the acquisition of Morphic 
Holding, Inc. (Morphic) in 2024. Phase 2 
trials are ongoing.
Ulcerative colitis
Phase 2
Ocadusertib
Rheumatoid arthritis
Phase 2
Phase 2 trial is ongoing.
Simepdekinra 
(DC-853)
Psoriasis
Phase 2
Phase 2 trial initiated in 2024.
Ucenprubart
Atopic dermatitis
Discontinued In 2024, Phase 2 trial was discontinued 
based on clinical data readout.
Neuroscience
Donanemab (Kisunla)
Early Alzheimer's disease
Approved
Approved in the U.S. and Japan in 2024. 
Submitted in the EU in 2023. Phase 3 
trials are ongoing.
Pre-clinical Alzheimer's 
disease
Phase 3
Phase 3 trial is ongoing.
Remternetug
Early Alzheimer's disease
Phase 3
Phase 3 trials are ongoing.
Epiregulin Ab
Pain
Phase 2
Phase 2 trial initiated in 2024.
GBA1 Gene Therapy
Gaucher disease Type 1
Phase 2
Phase 2 trial is ongoing.
Parkinson's disease
Phase 2
Granted U.S. Food and Drug 
Administration (FDA) Fast Track 
designation(2). Phase 2 trial is ongoing.
GRN Gene Therapy
Frontotemporal dementia
Phase 2
Granted FDA Fast Track designation(2). 
Phase 2 trial is ongoing.
Mazisotine
Pain
Phase 2
Phase 2 trials are ongoing.
OTOF Gene Therapy
Hearing loss
Phase 2
Phase 2 trial initiated in 2024.
P2X7 Inhibitor
Pain
Phase 2
Phase 2 trials were completed in 2023.
O-GlcNAcase Inh
Alzheimer's disease
Discontinued In 2024, Phase 2 trial was discontinued 
based on clinical data readout.
Compound
Indication/Study
Status 
Developments
43

Oncology
Pirtobrutinib
(Jaypirca)
Chronic lymphocytic 
leukemia
Approved(3)
FDA granted accelerated approval(3) in 
the U.S. in 2023. Submitted in the EU 
and Japan in 2024. Phase 3 trials are 
ongoing.
Mantle cell lymphoma
Approved(3)
FDA granted accelerated approval(3) in 
the U.S. in 2023. Approved in the EU in 
2023 and in Japan in 2024. Phase 3 trial 
is ongoing.
Imlunestrant
ER+HER2- metastatic 
breast cancer
Submitted
Submitted in the U.S., the EU, and Japan 
in 2024. 
Adjuvant breast cancer
Phase 3
Phase 3 trial is ongoing.
Olomorasib
1L KRAS G12C+ NSCLC
Phase 3
Phase 3 trial initiated in 2024.
Compound
Indication/Study
Status 
Developments
(1) In collaboration with Almirall, S.A. in Europe.
(2) Fast Track designation is designed to facilitate the development and expedite the review of medicines to treat serious conditions and fill 
an unmet medical need.
(3) Continued approval may be contingent on verification and description of clinical benefit in confirmatory Phase 3 trials.
There are many difficulties and uncertainties inherent in pharmaceutical research and development, the 
introduction of new products and indications, business development activities to enhance or refine our product 
pipeline, and commercialization of our products. There is a high rate of failure inherent in drug discovery and 
development. To bring a product from the discovery phase to market takes considerable time and entails 
significant cost. See Item 1A, "Risk Factors—Risks Related to Our Business and Industry—Pharmaceutical 
research and development is very costly and highly uncertain; we may not succeed in developing, licensing, 
or acquiring commercially successful products sufficient in number or value to replace revenues of products 
that have lost or will lose intellectual property protection or are displaced by competing products or therapies," 
for additional information.
We manage research and development spending across our portfolio of potential new medicines and 
indications. 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 reliably estimate the nature, timing, and costs of the efforts necessary to 
complete the development of our research and development projects, nor can we reliably estimate the future 
potential revenue that will be generated from any successful research and development project. Each project 
represents only a portion of the overall pipeline, and none is individually material to our consolidated research 
and development expense. While we do accumulate certain research and development costs on a project 
level for internal reporting purposes, we must make significant cost estimations and allocations, some of 
which rely on data that are neither reproducible nor validated through accepted control mechanisms. 
Therefore, we do not have sufficiently reliable data to report on total research and development costs by 
project, by pre-clinical versus clinical spend, or by therapeutic category. 
Other Matters
Patent Matters
We depend on patents or other forms of intellectual property protection for most of our revenue, cash flows, 
and earnings. 
See Note 16 to the consolidated financial statements for a description of legal proceedings currently pending 
regarding certain of our patents.
See Item 1, "Business—Patents, Trademarks, and Other Intellectual Property Rights," for a discussion of the 
impacts of trends involving intellectual property on our business and results.
44

Trends Affecting Pharmaceutical Pricing, Reimbursement, and Access and Certain Other Regulatory 
Developments
Reforms, including those that may stem from political initiatives, periods of uneven economic growth or 
downturns, or as a result of inflation or deflation, the emergence or escalation of, and responses to, 
international tension and conflicts, or government budgeting priorities, are expected to continue to result in 
added pressure on pricing and reimbursement for our products.
Global concern over access to, and affordability of, pharmaceutical products continues to drive regulatory and 
legislative debate and action, as well as cost containment efforts by governmental authorities. Such measures 
include the use of mandated discounts, price reporting requirements, mandated reference prices, restrictive 
formularies, changes to available intellectual property protections, as well as other efforts. In 2022, the U.S. 
government enacted the Inflation Reduction Act of 2022 (IRA). Among other measures, the IRA requires the 
U.S. Department of Health and Human Services (HHS) to effectively set prices for certain single-source drugs 
and biologics reimbursed under Medicare Part B and Part D. Generally, these government prices apply 
beginning at nine years (for medicines approved under a New Drug Application) or thirteen years (for 
medicines approved under a Biologics License Application) following FDA approval or licensure for the 
molecule and are set at a price that generally represents a significant discount from existing prices to 
wholesalers and direct purchasers. While the law specifies a maximum price that HHS can set, it does not set 
a minimum price. The Medicare price HHS determines may impact the product's best price determination 
under the Medicaid Drug Rebate Program and the 340B Drug Pricing Program, potentially leading to a 
negative impact on both Medicaid and 340B prices. In August 2023, HHS selected Jardiance, which is part of 
our collaboration with Boehringer Ingelheim, as one of the first ten medicines subject to government-set 
prices effective in 2026. In August 2024, HHS announced the government-set prices for these medicines with 
Jardiance subject to a 66% discount compared to the 2023 U.S. calendar year list price for a 30-day supply 
and discounts for the other nine medicines ranging from approximately 38% to 79% below list price. Given our 
product portfolio, we expect additional significant products will be selected in future years, which would have 
the effect of accelerating revenue erosion prior to expiry of exclusivities. The effect of reducing prices and 
reimbursement for certain of our products could significantly impact our business and consolidated results of 
operations. 
Other IRA provisions require drug manufacturers to provide rebates for Medicare Part B and Part D medicines 
under certain circumstances. Also, on January 1, 2025, the Part D benefit redesign replaced the Part D 
Coverage Gap Discount Program with a new manufacturer discount program. Manufacturers that fail to 
comply with the IRA may be subject to various penalties, including civil monetary penalties, which could be 
significant.
The IRA has, and will continue to, meaningfully influence our business strategies and those of our 
competitors. In particular, the nine-year timeline to set prices for medicines approved under a New Drug 
Application reduces the attractiveness of investment in small molecule innovation. The IRA can cause 
changes to development approach and timing and investments at-risk. The full impact of the IRA on our 
business and the pharmaceutical industry, including the implications to us of a competitor's product being 
selected for price setting, remains uncertain.
Additional policies, regulations, legislation, or enforcement, including those proposed or pursued by 
lawmakers, regulators, and other authorities in the U.S. and worldwide, could adversely impact our business 
and consolidated results of operations. For example, the U.S. House of Representatives recently passed the 
BIOSECURE Act, which is under consideration in the U.S. Senate. This legislation, if passed, could affect 
elements of the pharmaceutical supply chain; although as currently drafted we do not anticipate the bill would 
have a material impact on our business.
45

Consolidation and integration of private payers and pharmacy benefit managers in the U.S. has also 
significantly impacted the market for pharmaceuticals by increasing payer leverage in negotiating 
manufacturer price or rebate concessions and pharmacy reimbursement rates. Furthermore, restrictive or 
unfavorable pricing, coverage, or reimbursement determinations for our medicines or product candidates by 
governments, regulatory agencies, courts, or private payers may adversely impact our business and 
consolidated results of operations. We expect that these actions may intensify and could particularly affect 
certain products, which could adversely affect our business. In addition, we are engaged in litigation and 
investigations related to the 340B program, access to insulin, pricing, product safety, and other matters that, if 
resolved adversely to us, could negatively impact our business and consolidated results of operations. It is not 
currently possible to predict the overall potential adverse impact to us or the general pharmaceutical industry 
of continued cost containment efforts worldwide.
In addition, regulatory issues concerning compliance with current Good Manufacturing Practices, quality 
assurance, safety signals, evolving standards, and increased scrutiny around excipients and potential 
impurities such as nitrosamines, and similar regulations and standards (and comparable foreign regulations 
and standards) for our products in some cases lead to regulatory and legal actions, product recalls and 
seizures, fines and penalties, interruption of production leading to product shortages, import bans or denials 
of import certifications, inability to realize the benefit of capital expenditures, or delays or denials in new 
product approvals, line extensions or supplemental approvals of current products pending resolution of the 
issues, or other negative impacts, any of which result in reputational harm or adversely affect our business. 
See Item 1, "Business—Regulations and Private Payer Actions Affecting Pharmaceutical Pricing, 
Reimbursement, and Access," Item 1A, "Risk Factors," and Note 16 to the consolidated financial statements 
for additional information.
Incretin Medicines
At various times during 2024, demand for our incretin medicines exceeded production. Supply and channel 
dynamics have also contributed to variability in quarter-over-quarter revenue growth rates for tirzepatide. 
Tirzepatide supply currently exceeds demand in the U.S. Demand in launched markets remains dynamic, and 
increases or changes in demand, by dose or overall, as well as the complex supply chain, may result in 
periodic unavailability of certain presentations and dose levels at certain locations even when total tirzepatide 
supply can meet demand. Supply considerations will continue to influence the timing and approach (including 
available presentations) of tirzepatide launches in new markets. We continue to expand manufacturing 
capacity and progress efforts to bring tirzepatide to patients via different delivery presentations, such as 
single-use vials and multi-use pens. Production increases will continue, and additional capacity is expected to 
be operational over the next several years.
We have seen an increase in the production, marketing, and sale of counterfeit, misbranded, adulterated, and 
compounded incretins. These practices may impact patient safety and undermine regulatory drug approval 
processes. Lilly will continue to consider all options, including filing lawsuits where appropriate, to address 
unlawful practices and the patient safety risks of unapproved, untested, and manipulated drugs.
See Item 1, "Business—Government Regulation of Our Operations and Products” and Item 1A, "Risk —Risks 
Related to Our Business and Industry—We and our products face intense competition, including from 
multinational pharmaceutical companies, biotechnology companies, and lower-cost generic and biosimilar 
manufacturers, and such competition could have a material adverse effect on our business," for additional 
information.
46

Tax Matters
We are subject to income taxes and various other taxes in the U.S. and in many foreign jurisdictions; 
therefore, changes in both domestic and international tax laws or regulations have affected and may affect our 
effective tax rate, results of operations, and cash flows. The U.S. and countries around the world are actively 
proposing and enacting tax law changes. Further, actions taken with respect to tax-related matters by 
associations such as the Organisation for Economic Co-operation and Development (OECD) and the 
European Commission could influence tax laws in countries in which we operate. Tax authorities in the U.S. 
and other jurisdictions in which we do business routinely examine our tax returns and are expected to 
increase their scrutiny of cross-border tax issues. Changes to existing U.S. and foreign tax laws and 
increased scrutiny by tax authorities in the U.S. and other jurisdictions could have a material adverse impact 
our future consolidated results of operations and cash flows.
Effective January 1, 2024, several EU and non-EU countries enacted legislation (known as "Pillar Two") that 
provided for a minimum level of taxation of multinational companies. The increase to income tax expense as a 
result of the global minimum tax was not material in 2024 and is not expected to be material in current and 
future years. Our assessment of the impact for 2025 and subsequent years could be affected by legislative 
guidance and future enactment of additional provisions.
Acquisitions
We invest in external research and technologies and manufacturing capabilities that we believe complement 
and strengthen our own efforts. These investments can take many forms, including acquisitions, 
collaborations, investments, and licensing arrangements. We view our business development activity as a 
way to enhance or refine our pipeline and strengthen our business. 
See Note 3 to the consolidated financial statements for further discussion regarding our recent acquisitions.
Continued regulatory focus on business combinations in our industry, including by the Federal Trade 
Commission and competition authorities in Europe and other jurisdictions, could continue to delay, jeopardize, 
or increase the costs of our business development activities and may negatively impact our consolidated 
financial position or results of operations. For discussion of risks related to business development activities, 
see Item 1A, "Risk Factors—Risks Related to Our Business and Industry—Pharmaceutical research and 
development is very costly and highly uncertain; we may not succeed in developing, licensing, or acquiring 
commercially successful products sufficient in number or value to replace revenues of products that have lost 
or will lose intellectual property protection or are displaced by competing products or therapies."
Foreign Currency Exchange Rates
As a global company, we face foreign currency risk exposure from fluctuating currency exchange rates, 
primarily the U.S. dollar against the euro, Japanese yen, and Chinese yuan. While we seek to manage a 
portion of these exposures through hedging and other risk management techniques, significant fluctuations in 
currency rates can have a material impact, either positive or negative, on our consolidated results of 
operations in any given period. There is uncertainty in the future movements in foreign currency exchange 
rates, and fluctuations in these rates have and could adversely impact our consolidated results of operations 
and cash flows.
Other Factors
Other factors have had, and may continue to have, an impact on our consolidated results of operations. 
These factors include cost and wage inflation, supply chain and labor market complexities, international 
tension and conflicts, uneven economic growth or downturns or uncertainty, and an increase in overall 
demand in our industry for certain products and materials. 
See Item 1A, "Risk Factors," for additional information on risk factors that could impact our business and 
operations. 
47

RESULTS OF OPERATIONS
Operating Results—2024 
Revenue
The following table summarizes our revenue activity by region:
Year Ended December 31,
2024
2023
Percent Change
U.S.
$ 
30,375.2 
$ 
21,791.0 
39
Outside U.S.
 
14,667.5 
 
12,333.1 
19
Revenue
$ 
45,042.7 
$ 
34,124.1 
32
Numbers may not add due to rounding.
The following are components of the change in revenue compared with the prior year:
2024 vs. 2023
U.S.
Outside U.S.
Consolidated
Volume
 31 %
 20 %
 27 %
Price
 8 %
 — %
 5 %
Foreign exchange rates
 — %
 (1) %
 — %
Percent change
 39 %
 19 %
 32 %
Numbers may not add due to rounding.
In the U.S. the increase in volume in 2024 was primarily driven by Zepbound and Mounjaro, partially offset by 
Trulicity. In the U.S. the higher realized prices in 2024 were primarily driven by Humalog, Mounjaro, Verzenio, 
and Zepbound. 
Outside the U.S. the increase in volume in 2024 was primarily driven by Mounjaro and, to a lesser extent, 
Verzenio, as well as a one-time payment received of $300.0 million related to Jardiance associated with an 
amendment to our collaboration with Boehringer Ingelheim. Outside the U.S. the increase in volume in 2024 
was partially offset by the 2023 sale of rights for the olanzapine portfolio.
48

The following table summarizes our revenue, including net product revenue and collaboration and other 
revenue, by product in 2024 compared with 2023:
Year Ended December 31,
 
2024
2023
Percent 
Change
U.S.
Outside U.S.
Total
Total
Mounjaro
$ 
8,949.9 $ 
2,590.2 $ 11,540.1 $ 
5,163.1 
124
Verzenio
 
3,420.6  
1,886.0  
5,306.6  
3,863.4 
37
Trulicity
 
3,693.8  
1,559.7  
5,253.5  
7,132.6 
(26)
Zepbound
 
4,925.7  
—  
4,925.7  
175.8 
NM
Jardiance(1)
 
1,597.5  
1,743.4  
3,340.9  
2,744.7 
22
Taltz
 
2,152.3  
1,108.1  
3,260.4  
2,759.6 
18
Humalog(2)
 
1,502.6  
822.2  
2,324.8  
1,663.3 
40
Cyramza
 
442.2  
531.0  
973.3  
974.7 
—
Olumiant
 
228.7  
728.7  
957.4  
922.6 
4
Humulin
 
643.4  
273.7  
917.1  
852.1 
8
Emgality
 
559.7  
310.7  
870.4  
678.3 
28
Basaglar(3)
 
375.4  
301.5  
676.9  
728.3 
(7)
Erbitux
 
562.1  
65.3  
627.4  
596.5 
5
Tyvyt
 
—  
526.0  
526.0  
393.4 
34
Zyprexa(4)
 
2.0  
114.3  
116.3  
1,694.8 
(93)
Baqsimi
 
2.5  
26.7  
29.1  
677.6 
(96)
Other products
 
1,316.8  
2,080.0  
3,396.8  
3,103.3 
9
Revenue
$ 30,375.2 $ 14,667.5 $ 45,042.7 $ 34,124.1 
32
Numbers may not add due to rounding.
NM - not meaningful
(1) Jardiance revenue includes Glyxambi, Synjardy, and Trijardy XR. 
(2) Humalog revenue includes insulin lispro. 
(3) Basaglar revenue includes Rezvoglar. 
(4) Zyprexa revenue includes sale of the rights for the olanzapine portfolio in 2023.
Revenue of Mounjaro increased 85 percent in the U.S., primarily driven by strong demand and increased 
supply. Revenue outside of the U.S. was $2.59 billion in 2024 compared to $328.9 million in 2023, primarily 
driven by volume growth in launched markets. 
Revenue of Verzenio increased 36 percent in the U.S., driven by increased demand, wholesaler buying 
patterns and, to a lesser extent, higher realized prices. Revenue outside the U.S. increased 39 percent, 
driven by increased demand.
Revenue of Trulicity decreased 32 percent in the U.S., driven by decreased volume primarily due to 
competitive dynamics and supply constraints during the first half of 2024. Revenue outside the U.S. 
decreased 8 percent, driven by decreased volume primarily due to competitive dynamics and actions we have 
taken to manage demand.
Revenue of Zepbound in the U.S. in 2024 was $4.93 billion, compared to $175.8 million in 2023. Zepbound 
launched in the U.S. for the treatment of adult patients with obesity or overweight with weight-related 
comorbidities in November 2023.
Revenue of Jardiance remained relatively flat in the U.S. as increased demand was offset by lower realized 
prices. Revenue outside the U.S. increased 52 percent, driven by increased volume and a one-time payment 
received of $300.0 million associated with an amendment to our collaboration with Boehringer Ingelheim. 
Pursuant to the amendment, we and Boehringer Ingelheim adjusted commercialization responsibilities for 
Jardiance within certain smaller markets. See Note 4 to the consolidated financial statements for information 
regarding our collaboration with Boehringer Ingelheim involving Jardiance.
Revenue of Taltz increased 18 percent in the U.S., driven by higher realized prices due to changes in 
estimates for rebates and discounts, as well as increased demand. Revenue outside the U.S. increased 19 
percent, primarily driven by increased demand. 
49

Gross Margin, Costs, and Expenses
The following table summarizes our gross margin, costs, and expenses:
Year Ended December 31,
Percent 
Change
2024
2023
Gross margin
$ 
36,624.4 
$ 
27,041.9 
35
Gross margin as a percent of revenue
 81.3 %
 79.2 %
Research and development
$ 
10,990.6 
$ 
9,313.4 
18
Marketing, selling, and administrative
 
8,593.8 
 
7,403.1 
16
Acquired in-process research and development
 
3,280.4 
 
3,799.8 
(14)
Asset impairment, restructuring, and other special charges
 
860.6 
 
67.7 
NM
Other—net, (income) expense
 
218.6 
 
(96.7) 
NM
Income taxes
 
2,090.4 
 
1,314.2 
59
Effective tax rate
 16.5 %
 20.1 %
NM - not meaningful
Gross margin as a percent of revenue in 2024 increased 2.1 percentage points compared with 2023, primarily 
driven by favorable product mix and higher realized prices.
Research and development expenses increased 18 percent in 2024, primarily driven by continued 
investments in our early and late-stage portfolio.
Marketing, selling, and administrative expenses increased 16 percent in 2024, primarily driven by promotional 
efforts supporting ongoing and future launches.
Acquired in-process research and development (IPR&D) charges recognized in 2024 primarily related to the 
acquisition of Morphic. Acquired IPR&D charges recognized in 2023 primarily related to acquisitions of DICE 
Therapeutics, Inc., Versanis Bio, Inc., Emergence Therapeutics AG, and Mablink Biosciences SAS and from a 
business development transaction with Beam Therapeutics Inc. See Note 3 to the consolidated financial 
statements for additional information.
Asset impairment, restructuring, and other special charges recognized in 2024 primarily related to a 
$435.0 million litigation charge and an intangible asset impairment for Vitrakvi, driven by expected commercial 
projections. See Notes 5 and 16 to the consolidated financial statements for additional information.
Our effective tax rate was 16.5 percent in 2024, compared with an effective tax rate of 20.1 percent in 2023. 
The effective tax rates for 2024 and 2023 were both unfavorably impacted by non-deductible acquired IPR&D 
charges, with a larger impact occurring in 2023. See Note 14 to the consolidated financial statements for 
additional information.
For additional information for other–net, (income) expense, see Note 18 to the consolidated financial 
statements.
Operating Results—2023 
For a discussion of our results of operations pertaining to 2023 and 2022 see Item 7, "Management's 
Discussion and Analysis of Results of Operations and Financial Condition" in our Annual Report on Form 10-K 
for the year ended December 31, 2023.
50

FINANCIAL CONDITION AND LIQUIDITY
We believe our available cash and cash equivalents, together with our ability to generate operating cash flow 
and our access to short-term and long-term borrowings, are sufficient to fund our existing and planned capital 
requirements, which include: 
•
working capital requirements, including related to employee payroll and benefits, clinical trials, 
manufacturing materials, and taxes;
•
capital expenditures;
•
share repurchases and dividends;
•
repayment of outstanding short-term and long-term borrowings; 
•
milestone and royalty payments; 
•
potential business development activities, including acquisitions, collaborations, investments, and 
licensing arrangements; and 
•
contributions to our defined benefit pension and retiree health benefit plans.
Our management continuously evaluates our liquidity and capital resources, including our access to external 
capital, to ensure we can adequately and efficiently finance our capital requirements. As of December 31, 
2024, our material cash requirements primarily related to purchases of goods and services to produce our 
products and conduct our operations, income tax payments, capital expenditures, dividends, milestone and 
royalty payments, business development activities, share repurchases and repayment of outstanding 
borrowings (see Notes 14, 4, 3, 13, and 11 to the consolidated financial statements). We anticipate our cash 
requirements related to ordinary course purchases of goods and services will be consistent with our past 
levels relative to revenues.
Capital expenditures were $5.06 billion during 2024, compared to $3.45 billion in 2023. We are making 
investments in global facilities to manufacture existing and future products. These investments, and other 
capital investments that support our operations, have increased our capital expenditures and will result in 
meaningfully higher capital expenditures over the next several years. 
As we expand our manufacturing capacity in order to meet existing and expected demand of our medicines, 
we have entered, and expect to continue to enter, into various agreements for contract manufacturing and for 
supply of materials. The executed agreements could, under certain circumstances, require us to pay up to 
approximately $14 billion if we do not purchase specified amounts of goods or services primarily related to our 
incretin medicines, including medicines in development, over the durations of the agreements, which are 
generally up to 8 years. 
Cash and cash equivalents increased to $3.27 billion as of December 31, 2024, compared with $2.82 billion 
at December 31, 2023. Net cash provided by operating activities increased to $8.82 billion in 2024, compared 
with $4.24 billion in 2023. Refer to the consolidated statements of cash flows for additional information on the 
significant sources and uses of cash for the years ended December 31, 2024 and 2023. 
In addition to our cash and cash equivalents, we held total investments of $3.37 billion and $3.16 billion as of 
December 31, 2024 and 2023, respectively. See Note 7 to the consolidated financial statements for additional 
information.
We paid $3.35 billion in 2024 for acquired IPR&D primarily related to the acquisition of Morphic. We paid 
$947.7 million in 2024 primarily related to the acquisition of a manufacturing site in Wisconsin. See Note 3 to 
the consolidated financial statements for additional information.
As of December 31, 2024, total debt was $33.64 billion, an increase of $8.42 billion compared with 
$25.23 billion at December 31, 2023. In February 2025, we issued $6.5 billion of fixed-rate notes. We expect 
to use the net cash proceeds from the offering to fund potential business development activities, as well as 
general business purposes, including the repayment of outstanding commercial paper. See Note 11 to the 
consolidated financial statements for additional information. 
51

As of December 31, 2024, we had a total of $8.45 billion of unused committed bank credit facilities, 
$8.00 billion of which is available to support our commercial paper program. See Note 11 to the consolidated 
financial statements for additional information. We believe that amounts accessible through existing 
commercial paper markets should be adequate to fund short-term borrowing needs.
Dividends of $5.20 per share and $4.52 per share were paid in 2024 and 2023, respectively. The quarterly 
dividend was increased to $1.50 per share effective for the dividend to be paid in the first quarter of 2025, 
resulting in an indicated annual rate for 2025 of $6.00 per share.
In 2024, we repurchased $2.50 billion of shares, which completed our $5.00 billion share repurchase program 
that our board authorized in May 2021. Our board authorized a $15.00 billion share repurchase program in 
December 2024. No shares were repurchased under this new program as of December 31, 2024. See Note 
13 to the consolidated financial statements for additional information.
See "—Executive Overview—Other Matters—Patent Matters" for information regarding losses of patent 
protection.
Both domestically and abroad, we monitor the potential impacts of the economic environment and 
international tension and conflicts; the creditworthiness of our wholesalers and other customers, including 
foreign government-backed agencies and suppliers; the uncertain impact of healthcare legislation; and 
various international government funding levels.
In the normal course of business, our operations are exposed to fluctuations in interest rates, currency values, 
and fair values of equity securities. These fluctuations impact the costs of financing, investing, and operating 
our business. We seek to address a portion of these risks through a controlled program of risk management 
that includes the use of derivative financial instruments. The objective of this risk management program is to 
limit the impact on earnings of fluctuations in interest and currency exchange rates. All derivative activities are 
for purposes other than trading.
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 in some cases we enter into interest rate derivatives to help maintain that 
balance. As of December 31, 2024, all of our total long-term debt is at a fixed rate. We have converted 
approximately 5 percent of our long-term fixed-rate notes to floating rates through the use of interest rate 
swaps. Based on our overall interest rate exposure at December 31, 2024 and 2023, including derivatives 
and other interest rate risk-sensitive instruments, a hypothetical 10 percent change in interest rates applied to 
the fair value of the instruments as of December 31, 2024 and 2023, respectively, would not have a material 
impact on earnings, cash flows, or fair values of interest rate risk-sensitive instruments over a one-year 
period.
Our foreign currency risk exposure results from fluctuating currency exchange rates, primarily the U.S. dollar 
against the euro, Japanese yen, and Chinese yuan. We face foreign currency exchange exposures when we 
enter into transactions arising from subsidiary trade and loan payables and receivables denominated in 
foreign currencies. We also face currency exposure that arises from translating the results of our global 
operations to the U.S. dollar at exchange rates that have fluctuated from the beginning of the period. We in 
some cases enter into foreign currency forward or option derivative contracts to reduce the effect of 
fluctuating currency exchange rates (primarily the euro, Chinese yuan, and Japanese yen). Our corporate 
risk-management policy outlines the minimum and maximum hedge coverage of such exposures. Gains and 
losses on these derivative contracts offset, in part, the impact of currency fluctuations on the existing assets 
and liabilities. We periodically analyze the fair values of the outstanding foreign currency derivative contracts 
to determine their sensitivity to changes in foreign exchange rates. A hypothetical 10 percent change in 
exchange rates (primarily against the U.S. dollar) applied to the fair values of our outstanding foreign currency 
derivative contracts as of December 31, 2024 and 2023, would not have a material impact on earnings, cash 
flows, or financial position over a one-year period. This sensitivity analysis does not consider the impact that 
hypothetical changes in exchange rates would have on the underlying foreign currency denominated 
transactions.
Our fair value risk exposure relates primarily to our public equity investments and to our equity investments 
that do not have readily determinable fair values. As of December 31, 2024 and 2023, our carrying values of 
these investments were $1.35 billion and $1.32 billion, respectively. A hypothetical 20 percent change in fair 
value of the equity instruments would have impacted other-net, (income) expense by $269.9 million and 
$263.9 million as of December 31, 2024 and 2023, respectively. 
52

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 collaborate on 
potential products still in development and enter into research and development arrangements with third 
parties that often require milestone and royalty payments to the third-party contingent upon the occurrence of 
certain future events linked to the success of the asset in development. Milestone payments may be required 
contingent upon the successful achievement of an important point in the development life cycle of the 
pharmaceutical product (e.g., approval for marketing by the appropriate regulatory agency or upon the 
achievement of certain sales levels). If required by the arrangement, we may make royalty payments based 
upon a percentage of the sales of the product in the event that regulatory approval for marketing is obtained. 
Individually, these arrangements are generally 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 expense or aggregate milestone payments made could be material to our results of operations 
or cash flows, respectively, in that period. See Note 4 to the consolidated financial statements for additional 
information. These arrangements often give us the discretion to unilaterally terminate development of the 
product, which would allow us to avoid making the contingent payments; however, we are unlikely to cease 
development if the compound successfully achieves milestone objectives. We view these payments as 
positive because they signify that the product is successfully moving through development and is now 
generating or is more likely to generate cash flows from sales of products.
APPLICATION OF CRITICAL ACCOUNTING ESTIMATES
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 
consequently actual results could differ from those estimates. For any given individual estimate or assumption 
we make, it is possible that other people applying reasonable judgment to the same facts and circumstances 
could develop different estimates. We believe that, given current facts and circumstances, it is unlikely that 
applying any such other reasonable judgment would cause a material adverse effect on our consolidated 
results of operations, financial position, or liquidity for the periods presented in this Annual Report on Form 
10-K. Our most critical accounting estimates have been discussed with our audit committee and are 
described below.
Revenue Recognition and Sales Return, Rebate, and Discount Accruals
Background and Uncertainties
We recognize revenue primarily from two different types of contracts, product sales to customers (net product 
revenue) and collaborations and other arrangements. For product sales to customers, provisions for returns, 
rebates and discounts are established in the same period the related product sales are recognized. To 
determine the appropriate transaction price for our product sales at the time we recognize a sale to a direct 
customer, we estimate any rebates or discounts that ultimately will be due to the direct customer and other 
customers in the distribution chain under the terms of our contracts. Significant judgments are required in 
making these estimates. The largest of our sales rebate and discount amounts include rebates associated 
with sales covered by managed care, Medicare, Medicaid, and chargeback programs, as well as reductions in 
revenue related to our patient assistance programs, in the U.S. In determining the appropriate accrual 
amount, we consider our historical rebate payments for these programs, as well as patient assistance 
program costs, by product as a percentage of our historical sales as well as any significant changes in sales 
trends (e.g., patent expiries and product launches), an evaluation of the current contracts for these programs, 
the percentage of our products that are sold via these programs, and our product pricing. Although we accrue 
a liability for revenue reductions related to these programs at the time we record the sale, the reduction 
related to that sale is typically paid up to six months later. Because of this time lag, in any particular period our 
net product revenue may incorporate revisions of accruals for several periods.
Refer to Note 2 to the consolidated financial statements for further information on revenue recognition and 
sales return, rebate, and discount accruals.
Revenue recognized from collaborations and other arrangements includes our share of profits from the 
collaborations, as well as royalties, upfront and milestone payments we receive under these types of 
contracts.
53

Financial Statement Impact
We believe that our accruals for sales returns, rebates, and discounts are reasonable and appropriate based 
on current facts and circumstances. Our rebate and discount liabilities are included in sales rebates and 
discounts on our consolidated balance sheet. Our sales return liability is included in other current liabilities 
and other noncurrent liabilities on our consolidated balance sheet. As of December 31, 2024, a 5 percent 
change in our consolidated sales return, rebate, and discount liability would result in a change in revenue of 
approximately $600 million. 
The portion of our consolidated sales return, rebate, and discount liability resulting from sales of our products 
in the U.S. was approximately 90 percent as of December 31, 2024 and 2023.
The following represents a roll-forward of our most significant U.S. sales return, rebate, and discount liability 
balances, including managed care, Medicare, Medicaid, chargeback, and patient assistance programs:
2024
2023
Sales return, rebate, and discount liabilities, beginning of year
$ 10,667.5 $ 8,214.1 
Reduction of net sales(1) 
 41,452.3  37,866.8 
Cash payments
 (41,807.0)  (35,413.4) 
Sales return, rebate, and discount liabilities, end of year
$ 10,312.8 $ 10,667.5 
(1) Adjustments of the estimates for these returns, rebates, and discounts to actual results were less than 2 percent of consolidated 
revenue for each of the years presented.
Litigation Liabilities and Other Contingencies
Background and Uncertainties
Litigation liabilities and other contingencies are, by their nature, uncertain and based upon complex 
judgments and probabilities. The factors we consider in developing our litigation liability reserves and other 
contingent liability amounts include the merits and jurisdiction of the litigation, the nature and the number of 
other similar current and past matters, the nature of the product and the current assessment of the science 
subject to the litigation, as applicable, and the likelihood of settlement and current state of settlement 
discussions, if any. In addition, we accrue for certain product liability claims incurred but not filed to the extent 
we can formulate a reasonable estimate of their costs based primarily on historical claims experience and 
data regarding product usage. 
We also consider the insurance coverage we have to diminish the exposure for periods covered by insurance. 
In assessing our insurance coverage, we consider the policy coverage limits and exclusions, the potential for 
denial of coverage by the insurance company, the financial condition of the insurers, and the possibility of and 
length of time for collection. Due to a very restrictive market for liability insurance, we are predominantly self-
insured for liability losses for all our currently and previously marketed products, as well as for litigation or 
investigations related to our pricing practices or other similar matters. In addition to insurance coverage, we 
consider any third-party indemnification to which we are entitled or under which we are obligated. With 
respect to our third-party indemnification rights, these considerations include the nature of the indemnification, 
the financial condition of the indemnifying party, and the possibility of and length of time for collection.
The litigation accruals and environmental liabilities and the related estimated insurance recoverables are 
reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets.
54

Acquisitions
Background and Uncertainties
To determine whether acquisitions or licensing transactions should be accounted for as a business 
combination or as an asset acquisition, we make certain judgments, which include assessing whether the 
acquired set of activities and assets would meet the definition of a business under the relevant accounting 
rules. 
If the acquired set of activities and assets meets the definition of a business, assets acquired and liabilities 
assumed are required to be recorded at their respective fair values on our consolidated balance sheet as of 
the acquisition date. The excess of the purchase price over the fair value of the acquired net assets, where 
applicable, is recorded as goodwill. If the acquired set of activities and assets does not meet the definition of a 
business, the transaction is recorded as an acquisition of assets and, therefore, any acquired IPR&D that 
does not have an alternative future use is charged to acquired IPR&D on our consolidated statement of 
operations at the acquisition date, and goodwill is not recorded. See Note 3 to the consolidated financial 
statements for additional information. 
The judgments made in determining estimated fair values assigned to assets acquired and liabilities assumed 
in a business combination, as well as estimated asset lives, can materially affect our consolidated results of 
operations. The fair values of intangible assets, including acquired IPR&D, are determined using information 
available near the acquisition date based on estimates and assumptions that are deemed reasonable by 
management. Significant estimates and assumptions include, but are not limited to, probability of technical 
success, revenue projections, and discount rate. Depending on the facts and circumstances, we may deem it 
necessary to engage an independent valuation expert to assist in valuing significant assets and liabilities. 
The fair values of identifiable intangible assets are primarily determined using the "income method," as 
described in Note 8 to the consolidated financial statements.
The fair value of any contingent consideration liability that results from a business combination is primarily 
determined using a discounted cash flow analysis, as described in Note 7 to the consolidated financial 
statements. Estimating the fair value of contingent consideration requires the use of significant estimates and 
judgments, including, but not limited to, probability of technical success, timing of the potential milestone 
event, and the discount rate.
Financial Statement Impact
As of December 31, 2024, a 5 percent change in the contingent consideration liabilities would result in a 
change in income before income taxes of $1.6 million.
55

Impairment of Indefinite-Lived and Long-Lived Assets
Background and Uncertainties
We review the carrying value of long-lived assets (both intangible and tangible) for potential impairment 
whenever events or changes in circumstances indicate the carrying value of an asset (or asset group) may 
not be recoverable. We identify impairment by comparing the projected undiscounted cash flows to be 
generated by the asset (or asset group) to its carrying value. If an impairment is identified, a loss is recorded 
equal to the excess of the asset's net book value over its fair value, and the cost basis is adjusted.
Goodwill and indefinite-lived intangible assets are reviewed for impairment at least annually, or more 
frequently if impairment indicators are present, by first assessing qualitative factors to determine whether it is 
more likely than not that the fair value of the asset is less than its carrying amount. If we conclude it is more 
likely than not that the fair value is less than the carrying amount, a quantitative test that compares the fair 
value of the intangible asset to its carrying value is performed to determine the amount of any impairment.
Several methods may be used to determine the estimated fair value of long-lived assets, all of which require 
multiple assumptions. When determining the fair value of indefinite-lived acquired IPR&D as well as the fair 
value of finite-lived intangible assets for impairment testing purposes, we utilize the "income method," as 
described in Note 8 to the consolidated financial statements.
For acquired IPR&D assets, the risk of failure has been factored into the fair value measure and there can be 
no certainty that these assets ultimately will yield a successful product, as discussed previously in "—
Executive Overview—Clinical Development Pipeline." The nature of the pharmaceutical business is high-risk 
and requires that we invest in a large number of projects to maintain a successful portfolio of approved 
products. As such, it is likely that some acquired IPR&D assets will become impaired in the future.
Estimates of future cash flows, based on what we believe to be reasonable and supportable assumptions and 
projections, require management's judgment. Actual results could vary materially from these estimates.
Income Taxes
Background and Uncertainties
We file tax returns based upon our interpretation of tax laws and regulations, and we record estimates in our 
financial statements based upon these interpretations at the applicable tax rates in the jurisdictions in which 
we operate. Our tax returns are routinely subject to examination by taxing authorities, which could result in 
future tax, interest, and penalty assessments. Inherent uncertainties also exist in estimates of many tax 
positions due to the complexity of tax laws. We recognize the tax benefit from an uncertain tax position only if 
it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, 
based on the technical merits of the position. The tax benefits recognized in the financial statements from 
such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of 
being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in 
facts and circumstances such as changes to existing tax law, the issuance of regulations by taxing authorities, 
new information obtained during a tax examination, or resolution of a tax examination. We believe our 
estimates for uncertain tax positions are both appropriate and sufficient to pay assessments that may result 
from examinations of our tax returns; however, given the uncertainty of positions that could be taken by taxing 
authorities during the examinations of our tax returns, the ultimate outcome of any tax matters may result in 
liabilities that are greater than amounts accrued. We recognize both accrued interest and penalties related to 
unrecognized tax benefits in income tax expense.
We have recorded valuation allowances against certain of our deferred tax assets, primarily those that have 
been generated from net operating losses, tax credits, and other tax carryforwards in certain taxing 
jurisdictions, when the amount of future taxable income is unlikely to support their utilization.
Financial Statement Impact
As of December 31, 2024, a 5 percent change in the amount of uncertain tax positions and the valuation 
allowance would result in a change in net income of $131.3 million and $48.2 million, respectively.
56

Retirement Benefits Assumptions
Background and Uncertainties
Defined benefit pension plan and retiree health benefit plan costs include assumptions for the discount rate, 
expected return on plan assets, and retirement age. These assumptions have a significant effect on the 
amounts reported. In addition to the analysis below, see Note 15 to the consolidated financial statements for 
additional information regarding our retirement benefits.
Annually, we evaluate the discount rate and the expected return on plan assets in our defined benefit pension 
and retiree health benefit plans. We use an actuarially determined, plan-specific yield curve of high quality, 
fixed income debt instruments to determine the discount rates. In evaluating the expected return on plan 
assets, we consider many factors, with a primary analysis of current and projected market conditions, asset 
returns and asset allocations (approximately 75 percent of which are growth investments), and the views of 
leading financial advisers and economists. We may also review our historical assumptions compared with 
actual results, as well as the discount rates and expected return on plan assets of other companies, where 
applicable. In evaluating our expected retirement age assumption, we consider the retirement ages of our 
past employees eligible for pension and medical benefits together with our expectations of future retirement 
ages.
Financial Statement Impact
If the 2024 discount rate for the U.S. defined benefit pension and retiree health benefit plans (U.S. plans) 
were to change by a quarter percentage point, income before income taxes would change by $15.0 million. If 
the 2024 expected return on plan assets for U.S. plans were to change by a quarter percentage point, income 
before income taxes would change by $33.2 million. If our assumption regarding the 2024 expected age of 
future retirees for U.S. plans were adjusted by one year, our income before income taxes would be affected 
by $35.9 million. The U.S. plans, including Puerto Rico, represent approximately 80 percent for total projected 
benefit obligation and 85 percent for total plan assets at December 31, 2024.
LEGAL AND REGULATORY MATTERS 
Information relating to certain legal proceedings can be found in Note 16 to the consolidated financial 
statements and is incorporated here by reference.
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
You can find quantitative and qualitative disclosures about market risk (e.g., interest rate risk) at Item 7, 
"Management's Discussion and Analysis - Financial Condition and Liquidity." That information is incorporated 
by reference herein.
57

Item 8. Financial Statements and Supplementary Data
Consolidated Statements of Operations
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions, except per-share data, and shares in thousands)
Year Ended December 31,
2024
2023
2022
Revenue (Note 2)
$ 45,042.7 $ 34,124.1 $ 28,541.4 
Costs, expenses, and other:
Cost of sales
 
8,418.3  
7,082.2  
6,629.8 
Research and development
 
10,990.6  
9,313.4  
7,190.8 
Marketing, selling, and administrative
 
8,593.8  
7,403.1  
6,440.4 
Acquired in-process research and development (Note 3)
 
3,280.4  
3,799.8  
908.5 
Asset impairment, restructuring, and other special charges 
(Note 5)
 
860.6  
67.7  
244.6 
Other—net, (income) expense (Note 18)
 
218.6  
(96.7)  
320.9 
 
32,362.3  
27,569.5  
21,735.0 
Income before income taxes
 
12,680.4  
6,554.6  
6,806.4 
Income taxes (Note 14)
 
2,090.4  
1,314.2  
561.6 
Net income
$ 10,590.0 $ 
5,240.4 $ 
6,244.8 
Earnings per share:
Basic
$ 
11.76 $ 
5.82 $ 
6.93 
Diluted
$ 
11.71 $ 
5.80 $ 
6.90 
Shares used in calculation of earnings per share:
Basic
 
900,605  
900,181  
901,736 
Diluted
 
904,059  
903,284  
904,619 
See notes to consolidated financial statements.
58

Consolidated Statements of Comprehensive Income
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions)
Year Ended December 31,
2024
2023
2022
Net income
$ 10,590.0 $ 5,240.4 $ 6,244.8 
Other comprehensive income (loss):
Change in foreign currency translation gains (losses)
 
(424.2)  
(25.8)  
(248.1) 
Change in net unrealized gains (losses) on available-for-sale 
securities
 
(7.1)  
14.1  
(53.2) 
Change in retirement benefit plans (Note 15)
 
651.8  
(776.5)  
616.9 
Change in net unrealized gains (losses) on cash flow hedges
 
79.3  
109.5  
432.9 
Other comprehensive income (loss) before income taxes
 
299.8  
(678.7)  
748.5 
Benefit (expense) for income taxes related to other comprehensive 
income (loss) 
 
(294.7)  
196.3  
(250.0) 
Other comprehensive income (loss), net of tax (Note 17)
 
5.1  
(482.4)  
498.5 
Comprehensive income
$ 10,595.1 $ 4,758.0 $ 6,743.3 
See notes to consolidated financial statements.
59

Consolidated Balance Sheets
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions, shares in thousands)
December 31,
2024
2023
Assets
Current Assets
Cash and cash equivalents (Note 7)
$ 
3,268.4 $ 
2,818.6 
Short-term investments (Note 7)
 
154.8  
109.1 
Accounts receivable, net of allowances of $14.9 (2024) and $14.8 (2023)
 
11,005.7  
9,090.5 
Other receivables
 
2,269.7  
2,245.7 
Inventories (Note 6)
 
7,589.2  
5,772.8 
Prepaid expenses
 
8,340.5  
5,540.8 
Other current assets
 
111.4  
149.5 
Total current assets
 
32,739.7  
25,727.0 
Investments (Note 7)
 
3,215.9  
3,052.2 
Goodwill (Note 8)
 
5,770.3  
4,939.7 
Other intangibles, net (Note 8)
 
6,166.3  
6,906.6 
Deferred tax assets (Note 14)
 
8,000.6  
5,477.3 
Property and equipment, net (Note 9)
 
17,102.4  
12,913.6 
Other noncurrent assets
 
5,719.7  
4,989.9 
Total assets
$ 78,714.9 $ 64,006.3 
Liabilities and Equity
Current Liabilities
Short-term borrowings and current maturities of long-term debt (Note 11)
$ 
5,117.1 $ 
6,904.5 
Accounts payable
 
3,228.6  
2,598.8 
Employee compensation
 
2,093.9  
1,650.4 
Sales rebates and discounts
 
11,539.3  
11,689.0 
Dividends payable
 
1,346.3  
1,169.2 
Other current liabilities
 
5,051.4  
3,281.3 
Total current liabilities
 
28,376.6  
27,293.2 
Noncurrent Liabilities
Long-term debt (Note 11)
 
28,527.1  
18,320.8 
Accrued retirement benefits (Note 15)
 
1,300.5  
1,438.8 
Long-term income taxes payable (Note 14)
 
4,060.9  
3,849.2 
Other noncurrent liabilities
 
2,178.2  
2,240.6 
Total noncurrent liabilities
 
36,066.7  
25,849.4 
Commitments and Contingencies (Note 16)
Eli Lilly and Company Shareholders' Equity (Notes 12 and 13)
Common stock—no par value
Authorized shares: 3,200,000
Issued shares: 947,903 (2024) and 949,781 (2023)
 
592.4  
593.6 
Additional paid-in capital
 
7,439.3  
7,250.4 
Retained earnings
 
13,545.0  
10,312.3 
Employee benefit trust
 
(3,013.2)  
(3,013.2) 
Accumulated other comprehensive loss (Note 17)
 
(4,321.9)  
(4,327.0) 
Cost of common stock in treasury
 
(49.5)  
(44.2) 
Total Eli Lilly and Company shareholders' equity
 
14,192.1  
10,771.9 
Noncontrolling interests
 
79.5  
91.8 
Total equity
 
14,271.6  
10,863.7 
Total liabilities and equity
$ 78,714.9 $ 64,006.3 
See notes to consolidated financial statements.
60

Consolidated Statements of Shareholders' Equity
ELI LILLY AND COMPANY AND SUBSIDIARIES
Equity of Eli Lilly and Company Shareholders
(Dollars in millions, except 
per-share data, and shares in 
thousands)
Common Stock
Additional
Paid-in
Capital
Retained
Earnings
Employee 
Benefit 
Trust
Accumulated 
Other 
Comprehensive 
Loss
Common Stock in 
Treasury
Noncontrolling 
Interest
Shares
Amount
Shares
Amount
Balance at January 1, 2022
 
954,116 
$ 
596.3 
$ 6,833.4 
$ 8,958.5 
$ (3,013.2) $ 
(4,343.1)  
463 
$ 
(52.7) $ 
175.6 
Net income (loss)
 
6,244.8 
 
(20.9) 
Other comprehensive 
income, net of tax
 
498.5 
Cash dividends declared 
per share: $4.07
 (3,667.5) 
Retirement of treasury 
shares
 
(5,607)  
(3.5) 
 (1,496.5) 
 
(5,607)  
1,500.0 
Purchase of treasury shares
 
5,607 
 (1,500.0) 
Issuance of stock under 
employee stock plans, net
 
2,123 
 
1.3 
 
(283.1) 
 
(13)  
2.2 
Stock-based compensation
 
371.1 
Other
 
3.3 
 
(29.1) 
Balance at December 31, 
2022
 
950,632 
 
594.1 
 
6,921.4 
 10,042.6 
 (3,013.2)  
(3,844.6)  
450 
 
(50.5)  
125.6 
Net income
 
5,240.4 
 
11.0 
Other comprehensive loss, 
net of tax
 
(482.4) 
Cash dividends declared 
per share: $4.69
 (4,221.3) 
Retirement of treasury 
shares
 
(2,299)  
(1.4) 
 
(748.6) 
 
(2,299)  
750.0 
Purchase of treasury shares
 
2,299 
 
(750.0) 
Issuance of stock under 
employee stock plans, net
 
1,448 
 
0.9 
 
(299.5) 
 
(48)  
8.8 
Stock-based compensation
 
628.5 
Other
 
(0.8) 
 
(2.5)  
(44.8) 
Balance at December 31, 
2023
 
949,781 
 
593.6 
 
7,250.4 
 10,312.3 
 (3,013.2)  
(4,327.0)  
402 
 
(44.2)  
91.8 
Net income (loss)
 10,590.0 
 
(6.0) 
Other comprehensive 
income, net of tax
 
5.1 
Cash dividends declared 
per share: $5.40
 (4,857.5) 
Retirement of treasury 
shares
 
(2,964)  
(1.8) 
 (2,498.2) 
 
(2,964)  
2,500.0 
Purchase of treasury shares
 
2,964 
 (2,500.0) 
Issuance of stock under 
employee stock plans, net
 
1,086 
 
0.6 
 
(456.7) 
 
(37)  
11.5 
Stock-based compensation
 
645.6 
Other
 
(1.6) 
 
(16.8)  
(6.3) 
Balance at December 31, 
2024
 
947,903 
$ 
592.4 
$ 7,439.3 
$ 13,545.0 
$ (3,013.2) $ 
(4,321.9)  
365 
$ 
(49.5) $ 
79.5 
See notes to consolidated financial statements.
61

Consolidated Statements of Cash Flows
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Dollars in millions)
Year Ended December 31,
2024
2023
2022
Cash Flows from Operating Activities
Net income
$ 10,590.0 $ 5,240.4 $ 6,244.8 
Adjustments to Reconcile Net Income to Cash Flows from 
Operating Activities:
Depreciation and amortization
 
1,766.6  
1,527.3  
1,522.5 
Change in deferred income taxes
 
(2,683.1)  
(2,341.0)  
(2,185.2) 
Stock-based compensation expense
 
645.6  
628.5  
371.1 
 Investment (gains) losses, net
 
49.8  
23.5  
420.0 
Gains on sale of product rights
 
(223.8)  
(1,878.9)  
(156.5) 
Acquired in-process research and development
 
3,280.4  
3,799.8  
908.5 
Other operating activities, net
 
777.4  
295.5  
461.3 
Other changes in operating assets and liabilities, net of 
acquisitions and divestitures:
Receivables—(increase) decrease
 
(2,155.2)  
(2,451.0)  
(299.6) 
Inventories—(increase) decrease
 
(2,507.4)  
(1,425.0)  
(599.7) 
Prepaid expenses and other assets—(increase) decrease
 
(3,331.2)  
(3,453.4)  
(793.5) 
Accounts payable and other liabilities—increase (decrease)
 
2,608.8  
4,274.4  
1,692.0 
Net Cash Provided by Operating Activities
 
8,817.9  
4,240.1  
7,585.7 
Cash Flows from Investing Activities
Purchases of property and equipment
 
(5,057.8)  
(3,447.6)  
(1,854.3) 
Proceeds from sales and maturities of short-term investments
 
148.9  
192.2  
121.4 
Purchases of short-term investments
 
(98.5)  
(98.2)  
(107.4) 
Proceeds from sales of and distributions from noncurrent 
investments
 
373.6  
508.1  
342.2 
Purchases of noncurrent investments
 
(677.3)  
(730.8)  
(600.2) 
Proceeds from sale of product rights
 
601.3  
1,604.3  
95.8 
Purchases of in-process research and development
 
(3,345.8)  
(3,944.5)  
(1,131.0) 
Cash paid for acquisitions, net of cash acquired
 
(947.7)  
(1,044.3)  
(327.2) 
Other investing activities, net
 
(298.2)  
(191.9)  
(302.2) 
Net Cash Used for Investing Activities
 
(9,301.5)  
(7,152.7)  
(3,762.9) 
Cash Flows from Financing Activities
Dividends paid
 
(4,680.4)  
(4,069.3)  
(3,535.8) 
Net change in short-term borrowings
 
(1,851.8)  
4,691.4  
1,498.0 
Proceeds from issuance of long-term debt
 11,417.1  
3,958.5  
— 
Repayments of long-term debt
 
(664.2)  
—  
(1,560.0) 
Purchases of common stock
 
(2,500.0)  
(750.0)  
(1,500.0) 
Other financing activities, net
 
(490.6)  
(335.0)  
(308.9) 
Net Cash Provided by (Used for) Financing Activities
 
1,230.1  
3,495.6  
(5,406.7) 
Effect of exchange rate changes on cash and cash equivalents
 
(296.7)  
168.6  
(167.6) 
Net increase (decrease) in cash and cash equivalents
 
449.8  
751.6  
(1,751.5) 
Cash and cash equivalents at beginning of year
 
2,818.6  
2,067.0  
3,818.5 
Cash and Cash Equivalents at End of Year
$ 3,268.4 $ 2,818.6 $ 2,067.0 
See notes to consolidated financial statements.
62

Notes to Consolidated Financial Statements
ELI LILLY AND COMPANY AND SUBSIDIARIES
(Tables present dollars in millions)
Note 1: Summary of Significant Accounting Policies and Implementation of New Financial Accounting 
Standards
Basis of Presentation
The accompanying consolidated financial statements include Eli Lilly and Company and all subsidiaries and 
have been prepared in accordance with accounting principles generally accepted in the United States 
(GAAP). We consider majority voting interests, as well as effective economic or other control over an entity 
when deciding whether or not to consolidate an entity. We generally do not have control by means other than 
voting interests. Where our ownership of consolidated subsidiaries is less than 100 percent, the 
noncontrolling shareholders' interests are reflected as a separate component of equity. All intercompany 
balances and transactions have been eliminated.
The preparation of financial statements in conformity with GAAP requires management to make estimates 
and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related 
disclosures at the date of the financial statements and during the reporting period. Actual results could differ 
from those estimates. We issued our financial statements by filing with the Securities and Exchange 
Commission (SEC) and have evaluated subsequent events up to the time of the filing of this Annual Report on 
Form 10-K.
We operate as a single operating segment engaged in the discovery, development, manufacturing, marketing, 
and sales of pharmaceutical products worldwide. A global research and development organization and a 
supply chain organization are responsible for the discovery, development, manufacturing, and supply of our 
products. Our commercial organizations market, distribute, and sell the products. The business is also 
supported by global corporate staff functions. See Note 19 for additional information.
Research and Development Expenses and Acquired In-Process Research and Development (IPR&D)
Research and development costs are expensed as incurred. Research and development costs consist of 
expenses incurred in performing research and development activities, including but not limited to, 
compensation and benefits, facilities and overhead expense, clinical trial expense and fees paid to contract 
research organizations.
Acquired IPR&D includes the initial costs and development milestones incurred related to externally 
developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not 
have an alternative future use. Development milestones are milestone payment obligations that are incurred 
prior to regulatory approval of the compound and are expensed when the event triggering an obligation to pay 
the milestone occurs.
Earnings Per Share (EPS)
All per-share amounts, unless otherwise stated in the notes to the consolidated financial statements, are 
presented on a diluted basis. We calculate basic EPS based on the weighted-average number of common 
shares outstanding plus the effect of incremental shares from potential participating securities. We calculate 
diluted EPS based on the weighted-average number of common shares outstanding plus the effect of 
incremental shares from our stock-based compensation programs. 
Foreign Currency Translation
Operations in our subsidiaries outside the United States (U.S.) are recorded in the functional currency of each 
subsidiary which is determined by a review of the environment where each subsidiary primarily generates and 
expends cash. The results of operations for our subsidiaries outside the U.S. are translated from functional 
currencies into U.S. dollars using the weighted-average currency rate for the period. Assets and liabilities are 
translated using the period end exchange rates. The U.S. dollar effects that arise from translating the net 
assets of these subsidiaries are recorded in other comprehensive income (loss).
63

Advertising Expenses
Costs associated with advertising are expensed as incurred and are included in marketing, selling, and 
administrative expenses. Global advertising expenses, comprised primarily of online marketing and television 
advertising, totaled $1.44 billion, $1.12 billion, and $966.8 million in 2024, 2023, and 2022, respectively, which 
were less than 5 percent of revenue each year.
Other Significant Accounting Policies
Our other significant accounting policies are described in the remaining appropriate notes to the consolidated 
financial statements.
Reclassifications
Certain reclassifications have been made to prior periods in the consolidated financial statements and 
accompanying notes to conform with the current presentation. 
Implementation of New Financial Accounting Standards
Effective January 1, 2024, we adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting 
(Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosures about significant 
segment expenses and additional interim disclosure requirements. This standard also requires a single 
reportable segment company to provide all disclosures required by Topic 280. See Note 19 for the segment 
disclosures as required by Topic 280, as amended by ASU 2023-07.
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, establishes incremental 
disaggregation of income tax disclosures pertaining to the effective tax rate reconciliation and income taxes 
paid. This standard is effective for fiscal years beginning after December 15, 2024, and requires prospective 
application with the option to apply it retrospectively. We intend to adopt this standard in our Annual Report on 
Form 10-K for the year ending December 31, 2025. We are currently evaluating the potential impact of 
adopting this standard on our disclosures.
ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures 
(Subtopic 220-40): Disaggregation of Income Statement Expenses, requires disaggregation of specific 
expense categories in the notes to the financial statements and a qualitative description of the remaining 
expense amounts not separately disaggregated. This standard is effective for annual reporting periods 
beginning after December 15, 2026, and requires prospective application with the option to apply it 
retrospectively. We intend to adopt this standard in our Annual Report on Form 10-K for the year ending 
December 31, 2027. We are currently evaluating the potential impact of adopting this standard on our 
disclosures.
Note 2: Revenue
The following table summarizes our revenue recognized in our consolidated statements of operations:
2024
2023
2022
Net product revenue
$ 
40,747.9 $ 
28,813.9 $ 
25,462.8 
Collaboration and other revenue
 
4,294.8  
5,310.2  
3,078.6 
Revenue
$ 
45,042.7 $ 
34,124.1 $ 
28,541.4 
We recognize revenue primarily from two different types of contracts, product sales to customers (net product 
revenue) and collaborations and other arrangements. Revenue recognized from collaborations and other 
arrangements includes our share of profits from the collaborations, as well as royalties, upfront and milestone 
payments we receive under these types of contracts. See Note 4 for additional information related to our 
collaborations and other arrangements. Collaboration and other revenue disclosed above includes the 
revenue resulting from our collaboration with Boehringer Ingelheim, as well as from the 2023 sales of rights 
for the olanzapine portfolio, including Zyprexa, and for Baqsimi, all of which are discussed in Note 4. 
Substantially all of the remainder of collaboration and other revenue is related to contracts accounted for as 
contracts with customers. Collaboration and other revenue associated with intellectual property licensed in 
prior periods was not material for the years ended December 31, 2024, 2023, and 2022.
64

Net Product Revenue
Revenue from sales of products is recognized at the point where the customer obtains control of the goods 
and we satisfy our performance obligation, which generally is at the time we ship the product to the customer. 
Payment terms differ by jurisdiction and customer, but payment terms in most of our major jurisdictions 
typically range from 30 to 70 days from date of shipment. Revenue for our product sales has not been 
adjusted for the effects of a financing component as we expect, at contract inception, that the period between 
when we transfer control of the product and when we receive payment will be one year or less. Any 
exceptions are either not material or we collect interest for payments made after the due date. Provisions for 
rebates, discounts, and returns are established in the same period the related product sales are recognized. 
We generally ship product shortly after orders are received; therefore, we generally only have a few days of 
orders received but not yet shipped at the end of any reporting period. Shipping and handling activities are 
considered to be fulfillment activities and are not considered to be a separate performance obligation. We 
exclude from the measurement of the transaction price all taxes assessed by a governmental authority that 
are imposed on our sales of product and collected from a customer.
Most of our products are sold to wholesalers that serve pharmacies, physicians and other healthcare 
professionals, and hospitals. For the years ended December 31, 2024, 2023, and 2022, our three largest 
wholesalers each accounted for between 16 percent and 24 percent of consolidated revenue. Further, they 
each accounted for between 21 percent and 29 percent of accounts receivable as of December 31, 2024 and 
2023. 
Significant judgments must be made in determining the transaction price for our sales of products related to 
anticipated rebates, discounts, and returns. The following describe the most significant of these judgments:
Sales Rebates and Discounts - Background and Uncertainties
•
We initially invoice our customers at contractual list prices. Contracts with direct and indirect 
customers may provide for various rebates and discounts that may differ in each contract. As a 
consequence, to determine the appropriate transaction price for our product sales at the time we 
recognize a sale to a direct customer, we estimate any rebates or discounts that ultimately will be due 
to the direct customer and other customers in the distribution chain under the terms of our contracts. 
Significant judgments are required in making these estimates.
•
The rebate and discount amounts are recorded as a deduction to arrive at our net product revenue. 
Sales rebates and discounts that require the use of judgment in the establishment of the accrual 
include managed care, Medicare, Medicaid, chargebacks, long-term care, hospital, patient assistance 
programs, and various other programs. We estimate these accruals using an expected value 
approach.
•
The largest of our sales rebate and discount amounts include rebates associated with sales covered 
by managed care, Medicare, Medicaid, and chargeback programs, as well as reductions in revenue 
related to our patient assistance programs, in the U.S. In determining the appropriate accrual amount, 
we consider our historical rebate payments for these programs, as well as patient assistance program 
costs, by product as a percentage of our historical sales as well as any significant changes in sales 
trends (e.g., patent expiries and product launches), an evaluation of the current contracts for these 
programs, the percentage of our products that are sold via these programs, and our product pricing. 
Although we accrue a liability for revenue reductions related to these programs at the time we record 
the sale, the reduction related to that sale is typically paid up to six months later. Because of this time 
lag, in any particular period our net product revenue may incorporate revisions of accruals for several 
periods.
•
Most of our rebates outside the U.S. are contractual or legislatively mandated and are estimated and 
recognized in the same period as the related sales. In some large European countries, government 
rebates are based on the anticipated budget for pharmaceutical payments in the country. An estimate 
of these rebates, updated as governmental authorities revise budgeted deficits, is recognized in the 
same period as the related sale.
65

Sales Returns - Background and Uncertainties
•
When product sales occur, to determine the appropriate transaction price for our sales, we estimate a 
reserve for future product returns related to those sales using an expected value approach. This 
estimate is based on several factors, including: historical return rates, expiration date by product (on 
average, approximately 24 months after the initial sale of a product to our customer), and estimated 
levels of inventory in the wholesale and retail channels, as well as any other specifically identified 
anticipated returns due to known factors such as the loss of patent exclusivity, product recalls and 
discontinuations, or a changing competitive environment. We maintain a returns policy that allows 
most U.S. customers to return most of our products for dating issues within a specified period prior to 
and subsequent to the product's expiration date. Following the loss of exclusivity for a patent-
dependent product, we expect to experience an elevated level of product returns as product inventory 
remaining in the wholesale and retail channels expires. Adjustments to the returns reserve have been 
and may in the future be required based on revised estimates to our assumptions. We record the 
return amounts as a deduction to arrive at our net product revenue. Once the product is returned, it is 
destroyed; we do not record a right of return asset. Our returns policies outside the U.S. are generally 
more restrictive than in the U.S. as returns are not allowed for reasons other than failure to meet 
product specifications in many countries. Our reserve for future product returns for product sales 
outside the U.S. is not material.
•
As a part of our process to estimate a reserve for product returns, we regularly review the supply 
levels of our significant products at the major wholesalers in the U.S. and in major markets outside 
the U.S., primarily by reviewing periodic inventory reports supplied by our major wholesalers and 
available prescription volume information for our products, or alternative approaches. We attempt to 
maintain U.S. wholesaler inventory levels at an average of approximately one month or less. Causes 
of unusual wholesaler buying patterns include actual or anticipated product-supply issues, weather 
patterns, anticipated changes in the transportation network, redundant holiday stocking, and changes 
in wholesaler business operations. In the U.S., the current structure of our arrangements provides us 
with data on inventory levels at our wholesalers; however, our data on inventory levels in the retail 
channel is more limited. Wholesaler stocking and destocking activity historically has not caused any 
material changes in the rate of actual product returns.
•
Actual U.S. product returns have been less than 1 percent of our U.S. revenue during each of the 
past three years and have not fluctuated significantly as a percentage of revenue, although 
fluctuations are more likely in periods following loss of patent exclusivity for major products in the U.S. 
market. 
Adjustments to Revenue
Adjustments to revenue recognized as a result of changes in estimates for our most significant U.S. sales 
returns, rebates, and discounts liability balances for products shipped in previous periods were less than 3 
percent of U.S. revenue during the year ended December 31, 2024, and less than 1 percent of U.S. revenue 
during each of the years ended December 31, 2023 and 2022.
Collaboration and Other Arrangements
We recognize several types of revenue from our collaborations and other arrangements, which we discuss in 
general terms immediately below and more specifically in Note 4 for each of our significant collaborations and 
other arrangements. Our collaborations and other arrangements are evaluated to determine if the 
arrangements in their entirety, or contain aspects that, are contracts with customers. 
•
Revenue related to products we sell pursuant to these arrangements is included in net product 
revenue at the earlier of when control of the asset transfers to the other party or when the product has 
no alternative use to us and we have right to payment. 
•
Profit-sharing due from our collaboration partners, which is based upon gross margins reported to us 
by our partners, is recognized as collaboration and other revenue as earned.
•
Royalty revenue from licensees and certain of our collaboration partners, which is based on sales to 
third parties of licensed products and technology, is recorded when the third-party sale occurs and the 
performance obligation to which some or all of the royalty has been allocated has been satisfied (or 
partially satisfied). This royalty revenue is included in collaboration and other revenue.
66

•
The net gain or loss related to the sale of rights of a product is included in collaboration and other 
revenue when control of the asset transfers to the other party.
•
For arrangements that involve variable consideration where we have sold intellectual property, we 
recognize revenue based on estimates of the amount of consideration we believe we will be entitled 
to receive from the other party, but only to the extent a significant reversal in the amount of revenue 
recognized is not probable of occurring when the uncertainties associated with the variable 
consideration are subsequently resolved. These estimates are adjusted to reflect the actual amounts 
to be collected when those facts and circumstances become known. Significant judgments must be 
made in determining the transaction price for our sales of intellectual property. Because of the risk 
that products in development will not receive regulatory approval, we generally do not recognize any 
contingent payments that would be due to us upon or after regulatory approval. 
•
For arrangements involving multiple goods or services (e.g., research and development, marketing 
and selling, manufacturing, and distribution), each required good or service is evaluated to determine 
whether it is distinct. If a good or service does not qualify as distinct, it is combined with the other non-
distinct goods or services within the arrangement and these combined goods or services are treated 
as a single performance obligation for accounting purposes. The arrangement's transaction price is 
then allocated to each performance obligation based on the relative standalone selling price of each 
performance obligation. 
Contract Liabilities
Our contract liabilities result from arrangements where we have received payment in advance of performance 
under the contract and do not include sales returns, rebates, and discounts. Changes in contract liabilities are 
generally due to either receipt of additional advance payments or our performance under the contract. 
The following table summarizes contract liability balances at December 31:
 
2024
2023
Contract liabilities
$ 
166.3 $ 
193.6 
The contract liabilities balances disclosed above as of December 31, 2024 and 2023 were primarily related to 
the remaining license period of symbolic intellectual property and obligations to supply product for a defined 
period of time.
During the years ended December 31, 2024, 2023, and 2022, revenue recognized from contract liabilities as 
of the beginning of the respective year was not material. Revenue expected to be recognized in the future 
from contract liabilities as the related performance obligations are satisfied is not expected to be material in 
any one year.
67

Disaggregation of Revenue 
The following table summarizes revenue, including net product revenue and collaboration and other revenue, 
by product:
2024
2023
2022
2024
2023
2022
Cardiometabolic Health:
Mounjaro
$ 8,949.9 $ 4,834.2 $ 
366.6 $ 2,590.2 $ 
328.9 $ 
115.9 
Trulicity
 
3,693.8  
5,433.3  
5,688.8  
1,559.7  
1,699.2  
1,750.9 
Zepbound
 
4,925.7  
175.8  
—  
—  
—  
— 
Jardiance(1)
 
1,597.5  
1,600.4  
1,194.5  
1,743.4  
1,144.2  
871.5 
Humalog(2)
 
1,502.6  
863.2  
1,191.9  
822.2  
800.2  
868.7 
Humulin
 
643.4  
610.1  
730.2  
273.7  
242.0  
289.2 
Basaglar(3)
 
375.4  
443.1  
470.7  
301.5  
285.2  
289.7 
Baqsimi
 
2.5  
645.7  
110.4  
26.7  
31.9  
28.9 
Other cardiometabolic 
health
 
159.6  
175.0  
158.0  
353.1  
355.2  
338.9 
Total cardiometabolic health
 21,850.4  14,780.8  
9,911.1  
7,670.5  
4,886.8  
4,553.7 
Oncology:
Verzenio
 
3,420.6  
2,509.0  
1,653.2  
1,886.0  
1,354.3  
830.3 
Cyramza
 
442.2  
402.3  
351.4  
531.0  
572.4  
620.0 
Erbitux
 
562.1  
528.9  
500.1  
65.3  
67.6  
66.4 
Tyvyt
 
—  
—  
—  
526.0  
393.4  
293.3 
Other oncology
 
610.9  
356.8  
713.4  
708.3  
473.6  
638.1 
Total oncology
 
5,035.8  
3,797.0  
3,218.1  
3,716.6  
2,861.3  
2,448.1 
Immunology:
Taltz
 
2,152.3  
1,831.6  
1,724.6  
1,108.1  
928.0  
757.4 
Olumiant(4)
 
228.7  
225.5  
148.2  
728.7  
697.2  
682.3 
Other immunology
 
76.6  
0.8  
20.0  
98.5  
114.4  
12.1 
Total immunology
 
2,457.6  
2,057.9  
1,892.8  
1,935.3  
1,739.6  
1,451.8 
Neuroscience:
Emgality
 
559.7  
482.2  
462.8  
310.7  
196.0  
188.1 
Zyprexa(5)
 
2.0  
79.4  
30.4  
114.3  
1,615.4  
306.5 
Other neuroscience
 
218.2  
134.4  
119.2  
268.5  
371.1  
439.2 
Total neuroscience
 
779.9  
696.0  
612.4  
693.5  
2,182.5  
933.8 
Other:
COVID-19 antibodies(6)
 
—  
—  
2,008.9  
—  
—  
14.7 
Other
 
251.4  
459.3  
546.8  
651.6  
662.9  
949.3 
Total other
 
251.4  
459.3  
2,555.7  
651.6  
662.9  
964.0 
Revenue
$ 30,375.2 $ 21,791.0 $ 18,190.0 $ 14,667.5 $ 12,333.1 $ 10,351.3 
U.S.
Outside U.S.
Numbers may not add due to rounding.
(1) Jardiance revenue includes Glyxambi, Synjardy, and Trijardy XR. 
(2) Humalog revenue includes insulin lispro. 
(3) Basaglar revenue includes Rezvoglar.
(4) Olumiant revenue includes sales for baricitinib that were made pursuant to Emergency Use Authorization (EUA) or similar regulatory 
authorizations.
(5) Zyprexa revenue includes sale of rights for the olanzapine portfolio in July 2023.
(6) COVID-19 antibodies include sales for bamlanivimab administered alone, for bamlanivimab and etesevimab administered together, and 
for bebtelovimab and were made pursuant to EUAs or similar regulatory authorizations.
68

The following table summarizes revenue by geographical area:
2024
2023
2022
Revenue(1):
U.S.
$ 30,375.2 $ 21,791.0 $ 18,190.0 
Europe
 
6,920.7  
6,174.7  
4,299.2 
Japan
 
1,814.9  
1,672.6  
1,747.3 
China
 
1,660.4  
1,539.7  
1,452.8 
Rest of world
 
4,271.4  
2,946.2  
2,852.0 
Revenue
$ 45,042.7 $ 34,124.1 $ 28,541.4 
Numbers may not add due to rounding.
(1) Revenue is attributed to the countries based on the location of the customer or other party.
Note 3: Acquisitions
We engage in various forms of business development activities to enhance or refine our product pipeline, 
including acquisitions, collaborations, investments, and licensing arrangements. In connection with these 
arrangements, our partners may be entitled to future royalties and/or commercial milestones based on sales 
should products be approved for commercialization and/or milestones based on the successful progress of 
compounds through the development process. We account for each arrangement as either a business 
combination or an asset acquisition in accordance with GAAP.
Business Combinations
When an acquisition met the definition of a business under GAAP, the assets acquired and liabilities assumed 
were recorded at their respective fair values as of the acquisition date in our consolidated financial 
statements. The determination of estimated fair value required management to make significant estimates 
and assumptions. The excess of the purchase price over the fair value of the acquired net assets was 
recorded as goodwill. The results of operations of the acquisition are included in our consolidated financial 
statements from the date of acquisition.
Manufacturing Facility Acquisition
Overview of Transaction
In May 2024, we acquired all outstanding membership interests of NexPharm Parent HoldCo, LLC and Isopro 
Holdings, LLC, which together own the assets of a manufacturing site in Wisconsin, for a purchase price of 
$924.7 million, net of cash acquired. The facility is intended to further expand our global parenteral (injectable) 
product manufacturing network. 
69

Assets Acquired and Liabilities Assumed
The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the 
acquisition date:
Estimated Fair Value at May 23, 2024
Cash
$ 
2.3 
Goodwill(1)
 
816.5 
Property and equipment
 
108.5 
Other assets and liabilities, net
 
(0.3) 
Acquisition date fair value of consideration transferred 
 
927.0 
Less: 
Cash acquired
 
(2.3) 
Cash paid, net of cash acquired
$ 
924.7 
(1) The goodwill recognized from this acquisition is primarily attributable to the synergies between the manufacturing capabilities of the site 
and our products as well as the assembled workforce of the site, which is deductible for tax purposes.
The results of operations attributable to this acquisition for the year ended December 31, 2024 were not 
material.
Pro forma information has not been included as this acquisition did not have a material impact on our 
consolidated statements of operations for the year ended December 31, 2024.
POINT Acquisition
Overview of Transaction
In December 2023, we acquired all shares of POINT Biopharma Global Inc. (POINT) for a purchase price of 
$12.50 per share in cash (or an aggregate of $1.04 billion, net of cash acquired). POINT has capabilities in 
radiopharmaceutical discovery, development, and manufacturing efforts, as well as clinical and pre-clinical 
radioligand therapies in development for the treatment of cancer. 
Assets Acquired and Liabilities Assumed
The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the 
acquisition date:
Estimated Fair Value at December 27, 2023
Cash
$ 
302.7 
Acquired IPR&D
196.0
Goodwill(1)
853.9
Other assets and liabilities, net
 
(14.3) 
Acquisition date fair value of consideration transferred 
 
1,338.5 
Less: 
Cash acquired
 
(302.7) 
Cash paid, net of cash acquired
$ 
1,035.8 
(1) The goodwill recognized from this acquisition is primarily attributable to the radiopharmaceutical discovery, development, and 
manufacturing capabilities and the assembled workforce for POINT, which is not deductible for tax purposes.
The results of operations attributable to POINT for the years ended December 31, 2024 and 2023 were not 
material.
Pro forma information has not been included as this acquisition did not have a material impact on our 
consolidated statements of operations for the year ended December 31, 2023.
70

Akouos Acquisition
Overview of Transaction
In December 2022, we acquired all shares of Akouos, Inc. (Akouos) for a purchase price that included $12.50 
per share in cash (or an aggregate of $327.2 million, net of cash acquired) plus one non-tradable contingent 
value right (CVR) per share. The CVR entitles the Akouos shareholders up to an additional $3.00 per share in 
cash (or an aggregate of approximately $122 million) payable, subject to certain terms and conditions, upon 
the achievement of certain specified milestones prior to December 2028.
Under the terms of the agreement, we acquired potential gene therapy treatments for hearing loss and other 
inner ear conditions. The lead gene therapies in clinical development that we acquired included GJB2 (which 
encodes connexin 26) for a common form of monogenic deafness and hearing loss; AK-OTOF for hearing 
loss due to mutations in the otoferlin gene; AK-CLRN1 for Usher Type 3A, an autosomal recessive disorder 
characterized by progressive loss of both hearing and vision; and AK-antiVEGF for vestibular schwannoma.
Assets Acquired and Liabilities Assumed
The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the 
acquisition date:
Estimated Fair Value at December 1, 2022
Cash
$ 
153.2 
Acquired IPR&D(1)
184.0
Goodwill(2)
185.6
Other assets and liabilities, net
 
24.5 
Acquisition date fair value of consideration transferred 
547.3
Less: 
Cash acquired
 
(153.2) 
Fair value of CVR liability(3)
 
(66.9) 
Cash paid, net of cash acquired
$ 
327.2 
(1) Acquired IPR&D intangibles primarily relate to GJB2.
(2) The goodwill recognized from this acquisition is primarily attributable to future unidentified projects and products and the assembled 
workforce for Akouos and is not deductible for tax purposes. 
(3) See Note 7 for a discussion on the estimation of the CVR liability. 
The results of operations attributable to Akouos for the years ended December 31, 2024, 2023 and 2022 were 
not material.
Pro forma information has not been included as this acquisition did not have a material impact on our 
consolidated statements of operations for the year ended December 31, 2022.
71

Asset Acquisitions
Upon each asset acquisition, the cost allocated to acquired IPR&D was immediately expensed as acquired 
IPR&D if the compound has no alternative future use. Milestone payment obligations incurred prior to 
regulatory approval of the compound were expensed when the event triggering an obligation to pay the 
milestone occurred. We recognized acquired IPR&D charges of $3.28 billion, $3.80 billion, and $908.5 million 
for the years ended December 31, 2024, 2023, and 2022, respectively. The following table summarizes our 
significant asset acquisitions during 2024, 2023, and 2022.
Morphic Holding, Inc. (Morphic)
MORF-057, inhibitor of α4β7 
integrin for the treatment of 
inflammatory bowel disease
August 
2024
Phase 2
$ 
2,548.5 
Mablink Biosciences SAS
MBK-103, a folate receptor 
alpha antibody drug conjugate 
for the treatment of ovarian 
cancer
December 
2023
Pre-clinical
 
256.6 
Beam Therapeutics Inc.
Opt-in right for programs 
targeting PCSK9, ANGPTL3 
and an undisclosed liver-
mediated, cardiovascular 
target
October 
2023
Phase 1
 
216.3 
DICE Therapeutics, Inc. (DICE)
DC-806, an oral IL-17 inhibitor 
for the treatment of chronic 
diseases in immunology(2)
August 
2023
Phase 2
 
1,915.5 
Versanis Bio, Inc. (Versanis)
Bimagrumab, a monoclonal 
antibody for the treatment of 
people living with obesity and 
obesity-related complications
August 
2023
Phase 2
 
604.1 
Emergence Therapeutics AG 
(Emergence)
ETx-22, a Nectin-4 antibody-
drug conjugate for the 
treatment of urothelial cancer
August 
2023
Pre-clinical
 
406.5 
BioMarin Pharmaceutical Inc.
Priority Review Voucher
February 
2022
Not 
applicable
 
110.0 
Counterparty
Compound, Therapy, or Asset
Acquisition 
Month
Phase of 
Development(1)
Acquired IPR&D 
Charge
(1) The phase of development presented is as of the date of the arrangement and represents the phase of development of the most 
advanced asset acquired, where applicable.
(2) In 2024, we discontinued development of this molecule in favor of another molecule in development.
In connection with our acquisition of Petra Pharma Corporation (Petra) in 2020, we were required to make 
milestone payments to Petra shareholders contingent upon the occurrence of certain future events linked to 
the success of the mutant-selective PI3Kα inhibitor. In 2022, we entered into agreements with substantially all 
Petra shareholders to acquire their rights to receive any future milestone payments in exchange for a one-
time payment. As a result of these agreements, we recognized a charge of $333.8 million as acquired IPR&D 
in 2022. Any remaining contingent milestones payments linked to the success of the mutant-selective PI3Kα 
inhibitor are not expected to be material. 
We recognized no other significant acquired IPR&D charges during the years ended December 31, 2024, 
2023, and 2022. 
72

Note 4: Collaborations and Other Arrangements
We often enter into collaborative and other arrangements to develop and commercialize drug candidates or to 
sell the rights of a product. See Note 2 for a discussion of our recognition of revenue from our collaborations 
and other arrangements. 
Collaborative activities may include research and development, marketing and selling, manufacturing, and 
distribution for which we may receive from or pay to the collaboration partner expense reimbursements. 
Operating expenses for costs incurred pursuant to these arrangements are reported in their respective 
expense line item, net of any payments due to or reimbursements due from our collaboration partners, with 
such reimbursements being recognized at the time the party becomes obligated to pay. Each arrangement is 
unique in nature, and our more significant arrangements are discussed below.
Boehringer Ingelheim Collaboration
We and Boehringer Ingelheim have a global agreement to jointly develop and commercialize a portfolio of 
compounds. Significant product families included in the collaboration are Boehringer Ingelheim's Jardiance 
product family and our Basaglar product family. Glyxambi, Synjardy, and Trijardy XR are included in the 
Jardiance product family. Rezvoglar is included in the Basaglar product family.
For the Jardiance product family, we and Boehringer Ingelheim generally share equally the ongoing 
development and commercialization costs in the most significant markets, and we record our portion of the 
development and commercialization costs as research and development expense and marketing, selling, and 
administrative expense, respectively. We receive a royalty on net sales of the Jardiance product family in the 
most significant markets and recognize the royalty as collaboration and other revenue. Boehringer Ingelheim 
is entitled to potential performance payments depending on the net sales of the Jardiance product family; 
therefore, our reported revenue for Jardiance may be reduced by any potential performance payments we 
make related to this product family. The royalty received by us related to the Jardiance product family may 
also be increased or decreased depending on whether net sales for this product family exceed or fall below 
certain thresholds. We pay to Boehringer Ingelheim a royalty on net sales for the Basaglar product family in 
the U.S. We record our sales of the Basaglar product family to third parties as net product revenue with the 
royalty payments made to Boehringer Ingelheim recorded as cost of sales. The following table summarizes 
our revenue recognized:
2024
2023
2022
Jardiance
$ 
3,340.9 $ 
2,744.7 $ 
2,066.0 
Basaglar
 
676.9  
728.3  
760.4 
2024 revenue from Jardiance included a one-time payment received of $300.0 million associated with an 
amendment to our collaboration with Boehringer Ingelheim. Pursuant to the amendment, we and Boehringer 
Ingelheim adjusted commercialization responsibilities for Jardiance within certain smaller markets.
Olumiant
We have a worldwide license and collaboration agreement with Incyte Corporation (Incyte), which provides us 
the development and commercialization rights to baricitinib, which is branded and trademarked as Olumiant, 
and certain follow-on compounds, for the treatment of inflammatory and autoimmune diseases and 
COVID-19. Incyte has the right to receive tiered, double digit royalty payments on worldwide net sales with 
rates ranging up to 20 percent. Incyte has the right to receive an additional royalty ranging up to the low teens 
on worldwide net sales for the treatment of COVID-19 that exceed a specified aggregate worldwide net sales 
threshold.
We record our sales of Olumiant, including sales of baricitinib that were made pursuant to EUA or similar 
regulatory authorizations, to third parties as net product revenue with the royalty payments made to Incyte 
recorded as cost of sales. The following table summarizes our net product revenue recognized:
2024
2023
2022
Olumiant
$ 
957.4 $ 
922.6 $ 
830.5 
73

Tyvyt
We have a collaboration agreement with Innovent Biologics, Inc. (Innovent) to jointly develop and 
commercialize sintilimab injection in China, where it is branded and trademarked as Tyvyt. We record our 
sales of Tyvyt to third parties as net product revenue, with payments made to Innovent for its portion of the 
gross margin reported as cost of sales. We report as collaboration and other revenue our portion of the gross 
margin for Tyvyt sales made by Innovent to third parties. The following table summarizes our revenue 
recognized: 
2024
2023
2022
Tyvyt
$ 
526.0 $ 
393.4 $ 
293.3 
Ebglyss
We have a license agreement with F. Hoffmann-La Roche Ltd and Genentech, Inc. (collectively, Roche), 
which provides us the worldwide development and commercialization rights to lebrikizumab, which is branded 
and trademarked as Ebglyss. Roche receives tiered royalty payments on worldwide net sales ranging in 
percentages from high single digits to high teens, which we recognize as cost of sales. As of December 31, 
2024, Roche is eligible to receive additional payments from us, including up to $1.03 billion in potential sales-
based milestones. During the years ended December 31, 2024, 2023, and 2022, milestone payments to 
Roche were not material. 
We have a license agreement with Almirall, S.A. (Almirall), under which Almirall licensed the rights to develop 
and commercialize Ebglyss for the treatment or prevention of dermatology indications, including, but not 
limited to, atopic dermatitis in Europe. We receive tiered royalty payments on net sales in Europe ranging in 
percentages from low double digits to low twenties, which we recognize as collaboration and other revenue. 
During the years ended December 31, 2024, 2023, and 2022, collaboration and other revenue recognized 
under this license agreement was not material. As of December 31, 2024, we are eligible to receive additional 
payments up to $1.25 billion in a series of sales-based milestones.
Orforglipron
We have a license agreement with Chugai Pharmaceutical Co., Ltd (Chugai), which provides us with the 
worldwide development and commercialization rights to orforglipron. Chugai has the right to receive tiered 
royalty payments on future worldwide net sales from mid single digits to low teens if the product is 
successfully commercialized. As of December 31, 2024, Chugai is eligible to receive up to $140.0 million 
contingent upon the achievement of success-based regulatory milestones and up to $250.0 million in a series 
of sales-based milestones, contingent upon the commercial success of orforglipron. During the years ended 
December 31, 2024, 2023, and 2022, milestone payments to Chugai were not material.
COVID-19 Antibodies
We have a worldwide license and collaboration agreement with AbCellera Biologics Inc. (AbCellera) to co-
develop therapeutic antibodies for the potential prevention and treatment of COVID-19, including 
bamlanivimab and bebtelovimab, for which we hold development and commercialization rights. AbCellera 
received royalty payments, recorded as cost of sales, in the mid-teens to mid-twenties on worldwide net sales 
of bamlanivimab and bebtelovimab.
Pursuant to EUAs or similar regulatory authorizations, we recognized net product revenue associated with our 
sales of our COVID-19 antibodies of $2.02 billion during 2022. We had no sales of our COVID-19 antibodies 
during the years ended December 31, 2024 and 2023.
Divestitures
Olanzapine Portfolio (including Zyprexa)
In July 2023, we sold the rights for the olanzapine portfolio, including Zyprexa, to Cheplapharm Arzneimittel 
GmbH (Cheplapharm), a European company. Under the terms of the agreement, we received $1.05 billion in 
cash in 2023 and an additional $305.0 million in cash in 2024. We included both in the transaction price in 
2023.
We entered into a supply agreement with Cheplapharm that obligates Cheplapharm to purchase Zyprexa 
product we are manufacturing at an amount which represents a standalone selling price. As the product we 
are manufacturing under this supply agreement has no alternative use to us and we have right to payment, 
we recognize net product revenue over time as we manufacture the product.
74

During the year ended December 31, 2023, we recognized $1.45 billion in revenue primarily related to the net 
gain on the sale of rights for the olanzapine portfolio. 
Baqsimi
In June 2023, we sold the rights for Baqsimi to Amphastar Pharmaceuticals, Inc. (Amphastar). Under the 
terms of the agreement, we received $500.0 million in cash in 2023 and an additional $125.0 million in cash in 
2024. We included both in the transaction price in 2023. We are eligible to receive payments of up to 
$450.0 million in a series of sales-based milestones, that have not been included in the transaction price as of 
December 31, 2024. 
We entered into a supply agreement with Amphastar that obligates Amphastar to purchase Baqsimi product 
we are manufacturing at an amount which represents a standalone selling price. As the product we are 
manufacturing under this supply agreement has no alternative use to us and we have right to payment, we 
recognize net product revenue over time as we manufacture the product.
During the year ended December 31, 2023, we recognized $579.0 million in revenue primarily related to the 
net gain on the sale of rights for Baqsimi. 
Note 5: Asset Impairment, Restructuring, and Other Special Charges
Asset impairment, restructuring, and other special charges were $860.6 million, $67.7 million, and 
$244.6 million for the years ended December 31, 2024, 2023, and 2022, respectively.
Asset impairment, restructuring, and other special charges recognized during the year ended December 31, 
2024 were primarily related to a $435.0 million litigation charge and an intangible asset impairment for 
Vitrakvi, driven by expected commercial projections. See Note 16 for additional information related to the 
litigation charge. 
Asset impairment, restructuring, and other special charges recognized during the year ended December 31, 
2022 were primarily related to an intangible asset impairment driven by delays in estimated launch timing.
Note 6: Inventories
We use the last-in, first-out (LIFO) method for the majority of our inventories located in the continental U.S. 
Other inventories are valued by the first-in, first-out (FIFO) method. FIFO cost approximates current 
replacement cost. Inventories measured using LIFO must be valued at the lower of cost or market. Inventories 
measured using FIFO must be valued at the lower of cost or net realizable value. 
Inventories at December 31 consisted of the following:
2024
2023
Finished products
$ 
1,220.8 $ 
791.7 
Work in process
 
3,979.5  
3,248.6 
Raw materials and supplies
 
2,326.0  
1,630.1 
Total (approximates replacement cost)
 
7,526.3  
5,670.4 
Increase to LIFO cost
 
62.9  
102.4 
Inventories
$ 
7,589.2 $ 
5,772.8 
Inventories valued under the LIFO method comprised $2.70 billion and $1.77 billion of total inventories at 
December 31, 2024 and 2023, respectively.
When we believe that future commercialization is probable and the future economic benefit is expected to be 
realized, we capitalize pre-launch inventory prior to regulatory approval. A number of factors are considered, 
including the current status in the regulatory approval process, potential impediments to the approval process 
such as safety or efficacy, viability of commercialization, and marketplace trends. Pre-launch inventory 
capitalized as of December 31, 2024 was $548.1 million, primarily related to orforglipron.
75

Note 7: Financial Instruments
Investments in Equity and Debt Securities
Our equity investments are accounted for using three different methods depending on the type of equity 
investment:
•
Investments in companies over which we have significant influence but not a controlling interest are 
accounted for using the equity method, with our share of earnings or losses reported in other-net, 
(income) expense. 
•
For equity investments that do not have readily determinable fair values, we measure these 
investments at cost, less any impairment, plus or minus changes resulting from observable price 
changes in orderly transactions for the identical or similar investment of the same issuer. Any change 
in recorded value is recorded in other-net, (income) expense. 
•
Our public equity investments are measured and carried at fair value. Any change in fair value is 
recognized in other-net, (income) expense. 
We adjust our equity investments without readily determinable fair values based upon changes in the equity 
instruments' values resulting from observable price changes in orderly transactions for an identical or similar 
investment of the same issuer. Downward adjustments resulting from an impairment are recorded based upon 
impairment considerations, including the financial condition and near-term prospects of the issuer, general 
market conditions, and industry specific factors. Adjustments recorded for the years ended December 31, 
2024, 2023, and 2022 were not material.
The net losses recognized in our consolidated statements of operations for equity securities were 
$49.5 million, $20.2 million, and $410.7 million for the years ended December 31, 2024, 2023, and 2022, 
respectively. The net gains (losses) recognized for the years ended December 31, 2024, 2023, and 2022 on 
equity securities sold during the respective periods were not material.
As of December 31, 2024, we had approximately $899 million of unfunded commitments to invest in venture 
capital funds, which we anticipate will be paid over a period of up to 10 years.
We record our available-for-sale debt securities at fair value, with changes in fair value reported as a 
component of accumulated other comprehensive income (loss). We periodically assess our investment in 
available-for-sale securities for impairment losses and credit losses. The amount of credit losses is 
determined by comparing the difference between the present value of future cash flows expected to be 
collected on these securities and the amortized cost. Factors considered in assessing credit losses include 
the position in the capital structure, vintage and amount of collateral, delinquency rates, current credit support, 
and geographic concentration. Impairment and credit losses related to available-for-sale securities were not 
material for the years ended December 31, 2024, 2023, and 2022.
The table below summarizes the contractual maturities of our investments in debt securities measured at fair 
value as of December 31, 2024:
 
Maturities by Period
Total
Less Than
1 Year
1-5
Years
6-10
Years
More Than 
10 Years
Fair value of debt securities
$ 
668.8 $ 
95.2 $ 
225.5 $ 
93.3 $ 
254.8 
A summary of the amount of unrealized gains and losses in accumulated other comprehensive loss and the 
fair value of available-for-sale securities in an unrealized gain or loss position follows:
2024
2023
Unrealized gross gains
$ 
1.6 $ 
3.4 
Unrealized gross losses
 
43.2  
37.9 
Fair value of securities in an unrealized gain position
 
142.6  
159.2 
Fair value of securities in an unrealized loss position
 
491.2  
452.0 
76

As of December 31, 2024, the available-for-sale securities in an unrealized loss position include primarily 
fixed-rate debt securities of varying maturities, which are sensitive to changes in the yield curve and other 
market conditions. Substantially all of the fixed-rate debt securities in a loss position are investment-grade 
debt securities. As of December 31, 2024, we do not intend to sell, and it is not more likely than not that we 
will be required to sell, the securities in a loss position before the market values recover or the underlying 
cash flows have been received, and there is no indication of a material default on interest or principal 
payments for our debt securities.
Realized gains and losses on sales of available-for-sale investments are computed based upon specific 
identification of the initial cost adjusted for any other-than-temporary declines in fair value that were recorded 
in earnings and were not material for the years ended December 31, 2024, 2023, and 2022. Proceeds from 
sales of available-for-sale investments were $98.0 million, $145.6 million, and $132.9 million for the years 
ended December 31, 2024, 2023, and 2022, respectively.
77

Fair Value of Investments
The following table summarizes certain fair value information at December 31, 2024 and 2023 for investment 
assets measured at fair value on a recurring basis, as well as the carrying amount and amortized cost of 
certain other investments:
 
 
 
Fair Value Measurements Using
 
Carrying
Amount
Cost(1)
Quoted Prices 
in Active 
Markets for 
Identical 
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair
Value
December 31, 2024
Cash equivalents(2)
$ 
1,506.9 
$ 
1,506.9 
$ 
1,494.1 
$ 
12.8 
$ 
— 
$ 
1,506.9 
Short-term investments:
U.S. government and agency 
securities
$ 
29.2 
$ 
29.3 
$ 
29.2 
$ 
— 
$ 
— 
$ 
29.2 
Corporate debt securities
 
65.3 
 
65.4 
 
— 
 
65.3 
 
— 
 
65.3 
Asset-backed securities
 
0.6 
 
0.7 
 
— 
 
0.6 
 
— 
 
0.6 
Other securities
 
59.7 
 
59.7 
 
— 
 
16.7 
 
43.0 
 
59.7 
Short-term investments
$ 
154.8 
Noncurrent investments:
U.S. government and agency 
securities
$ 
140.2 
$ 
156.4 
$ 
140.2 
$ 
— 
$ 
— 
$ 
140.2 
Corporate debt securities
 
211.4 
 
225.0 
 
— 
 
211.4 
 
— 
 
211.4 
Mortgage-backed securities
 
165.3 
 
177.2 
 
— 
 
165.3 
 
— 
 
165.3 
Asset-backed securities
 
56.7 
 
57.5 
 
— 
 
56.7 
 
— 
 
56.7 
Other securities
 
150.3 
 
102.6 
 
— 
 
6.3 
 
144.0 
 
150.3 
Marketable equity securities
 
485.5 
 
494.6 
 
485.5 
 
— 
 
— 
 
485.5 
Equity investments without readily 
determinable fair values(3)
 
863.8 
Equity method investments(3)
 
1,142.7 
Noncurrent investments
$ 
3,215.9 
December 31, 2023
Cash equivalents(2)
$ 
1,088.4 
$ 
1,088.4 
$ 
1,079.3 
$ 
9.1 
$ 
— 
$ 
1,088.4 
Short-term investments:
U.S. government and agency 
securities
$ 
32.1 
$ 
32.3 
$ 
32.1 
$ 
— 
$ 
— 
$ 
32.1 
Corporate debt securities
 
52.0 
 
52.1 
 
— 
 
52.0 
 
— 
 
52.0 
Other securities
 
25.0 
 
25.0 
 
— 
 
13.6 
 
11.4 
 
25.0 
Short-term investments
$ 
109.1 
Noncurrent investments:
U.S. government and agency 
securities
$ 
148.1 
$ 
161.0 
$ 
148.1 
$ 
— 
$ 
— 
$ 
148.1 
Corporate debt securities
 
214.3 
 
226.6 
 
— 
 
214.3 
 
— 
 
214.3 
Mortgage-backed securities
 
157.3 
 
167.1 
 
— 
 
157.3 
 
— 
 
157.3 
Asset-backed securities
 
53.5 
 
54.4 
 
— 
 
53.5 
 
— 
 
53.5 
Other securities
 
197.4 
 
100.2 
 
— 
 
23.5 
 
173.9 
 
197.4 
Marketable equity securities
 
711.3 
 
493.2 
 
711.3 
 
— 
 
— 
 
711.3 
Equity investments without readily 
determinable fair values(3)
 
608.0 
Equity method investments(3)
 
962.3 
Noncurrent investments
$ 
3,052.2 
(1) For available-for-sale debt securities, amounts disclosed represent the securities' amortized cost.
(2) We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The 
cost of these investments approximates fair value.
(3) Fair value disclosures are not applicable for equity method investments and investments accounted for under the measurement 
alternative for equity investments.
78

We determine our Level 1 and Level 2 fair value measurements based on a market approach using quoted 
market values, significant other observable inputs for identical or comparable assets or liabilities, or 
discounted cash flow analyses. Level 3 fair value measurements for other investment securities are 
determined using unobservable inputs, including the investments' cost adjusted for impairments and price 
changes from orderly transactions. Fair values are not readily available for certain equity investments 
measured under the measurement alternative.
Debt
Fair Value of Debt
The following table summarizes certain fair value information for our short-term and long-term debt:
 
Fair Value Measurements Using
 
Carrying
Amount
Quoted Prices 
in Active 
Markets for 
Identical 
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair
Value
Short-term commercial paper borrowings
December 31, 2024
$ 4,337.6 $ 
— $ 4,319.4 $ 
— $ 4,319.4 
December 31, 2023
 
6,189.4  
—  
6,166.4  
—  
6,166.4 
Long-term debt, including current portion
December 31, 2024
 29,306.7  
—  26,249.0  
—  26,249.0 
December 31, 2023
 19,035.9  
—  17,221.7  
—  17,221.7 
Risk Management and Related Financial Instruments
Financial instruments that potentially subject us to credit risk consist principally of trade receivables and 
interest-bearing investments. Wholesale distributors of our products account for a substantial portion of our 
trade receivables; collateral is generally not required. We seek to mitigate the risk associated with this 
concentration through our ongoing credit-review procedures and insurance. The majority of our cash is held 
by a few major financial institutions that have been identified as Global Systemically Important Banks (G-
SIBs) by the Financial Stability Board. G-SIBs are subject to rigorous regulatory testing and oversight and 
must meet certain capital requirements. We monitor our exposures with these institutions and do not expect 
any of these institutions to fail to meet their obligations. In accordance with documented corporate risk-
management policies, we monitor the amount of credit exposure to any one financial institution or corporate 
issuer based on credit rating of our counterparty. We are exposed to credit-related losses in the event of 
nonperformance by counterparties to risk-management instruments but do not expect significant 
counterparties to fail to meet their obligations given their investment grade credit ratings.
We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our 
non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in 
accounts receivable because the agreements transfer effective control over, and risk related to, the 
receivables to the buyers. We derecognized $421.6 million and $431.9 million of accounts receivable as of 
December 31, 2024 and 2023, respectively, under these factoring arrangements. The costs of factoring such 
accounts receivable as well as estimated credit losses were not material for the years ended December 31, 
2024, 2023, and 2022.
Our derivative activities are initiated within the guidelines of documented corporate risk-management policies 
and are intended to offset losses and gains on the assets, liabilities, and transactions being hedged. 
Management reviews the correlation and effectiveness of our derivatives on a quarterly basis.
79

For derivative instruments that are designated and qualify as fair value hedges, the derivative instrument is 
marked to market, with gains and losses recognized currently in income to offset the respective losses and 
gains recognized on the underlying exposure. For derivative instruments that are designated and qualify as 
cash flow hedges, gains and losses are reported as a component of accumulated other comprehensive 
income (loss) (see Note 17) and reclassified into earnings in the same period the hedged transaction affects 
earnings. For derivative and non-derivative instruments that are designated and qualify as net investment 
hedges, the foreign currency translation gains or losses due to spot rate fluctuations are reported as a 
component of accumulated other comprehensive income (loss) (see Note 17). Derivative contracts that are 
not designated as hedging instruments are recorded at fair value with the gain or loss recognized in earnings 
during the period of change.
Foreign currency exchange risk is managed through the use of foreign currency debt, cross-currency interest 
rate swaps, and foreign currency forward contracts. Our foreign currency-denominated notes had carrying 
amounts of $6.03 billion and $7.14 billion as of December 31, 2024 and 2023, respectively, of which 
$5.34 billion and $5.67 billion have been designated as, and are effective as, hedges of net investments in 
certain of our foreign operations as of December 31, 2024 and 2023, respectively. At December 31, 2024, we 
had outstanding cross-currency interest rate swaps with notional amounts of $218.0 million swapping U.S. 
dollars to euro and 402.0 million Swiss francs swapping to U.S. dollars, with settlement dates ranging through 
2028. Our cross-currency interest rate swaps have been designated as, and are effective as, net investment 
and cash flow hedges, respectively. At December 31, 2024, we had outstanding foreign currency forward 
contracts to sell 7.59 billion euro and to sell 4.20 billion Chinese yuan, with settlement dates ranging through 
2025, which have been designated as, and are effective as, hedges of net investments.
We may also enter into foreign currency forward or option contracts as economic hedges to manage 
exposures arising from subsidiary trade and loan payables and receivables denominated in foreign currencies 
(primarily the euro and Japanese yen). Foreign currency derivatives used for hedging are put in place using 
the same or like currencies and duration as the underlying exposures. These contracts are recorded at fair 
value with the gain or loss recognized in other–net, (income) expense. Forward contracts generally have 
maturities not exceeding 12 months. At December 31, 2024, our significant outstanding foreign currency 
forward commitments were as follows, all of which have settlement dates within 180 days:
December 31, 2024
Purchase
Sell
Currency
Amount
(in millions)
Currency
Amount
(in millions)
Euro
7,522.1
U.S. dollars
7,905.8
U.S. dollars
7,095.3
Euro
6,803.9
U.S. dollars
468.3
Japanese yen
72,355.7
Japanese yen
49,713.2
U.S. dollars
316.1
In the normal course of business, our operations are exposed to fluctuations in interest rates which can vary 
the costs of financing, investing, and operating. We seek to address a portion of these risks through a 
controlled program of risk management that includes the use of derivative financial instruments. The objective 
of controlling these risks is to limit the impact of fluctuations in interest rates on earnings. 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 and 
investment positions and may enter into interest rate swaps or collars to help maintain that balance. 
Interest rate swaps or collars that convert our fixed-rate debt to a floating rate are designated as fair value 
hedges of the underlying instruments. Interest rate swaps or collars that convert floating-rate debt to a fixed 
rate are designated as cash flow hedges. Interest expense on the debt is adjusted to include the payments 
made or received under the swap agreements. Cash proceeds from or payments to counterparties resulting 
from the termination of interest rate swaps are classified as operating activities in our consolidated statements 
of cash flows. At December 31, 2024, all of our total long-term debt is at a fixed rate. We have converted 
approximately 5 percent of our long-term fixed-rate notes to floating rates through the use of interest rate 
swaps.
80

We also may enter into forward-starting interest rate swaps and treasury locks, which we designate as cash 
flow hedges, as part of any anticipated future debt issuances in order to reduce the risk of cash flow volatility 
from future changes in interest rates. The change in fair value of these instruments is recorded as part of 
other comprehensive income (loss) (see Note 17) and, upon completion of a debt issuance and termination of 
the instrument, is amortized to interest expense over the life of the underlying debt. Cash proceeds or 
payments from the termination of these instruments are classified as operating activities in our consolidated 
statements of cash flows. 
The Effect of Risk Management Instruments on the Consolidated Statements of Operations
The following effects of risk-management instruments were recognized in other–net, (income) expense:
2024
2023
2022
Fair value hedges:
Effect from hedged fixed-rate debt
$ 
(16.3) $ 
31.5 $ 
(209.8) 
Effect from interest rate contracts
 
16.3  
(31.5)  
209.8 
Cash flow hedges:
Effective portion of losses on interest rate contracts reclassified 
from accumulated other comprehensive loss
 
7.2  
13.5  
16.5 
Cross-currency interest rate swaps
 
93.0  
(108.6)  
8.6 
Net losses on foreign currency exchange contracts not designated 
as hedging instruments
 
288.3  
26.4  
191.3 
Total 
$ 
388.5 $ 
(68.7) $ 
216.4 
During the years ended December 31, 2024, 2023, and 2022, the amortization of losses related to the portion 
of our risk management hedging instruments, fair value hedges, and cash flow hedges that was excluded 
from the assessment of effectiveness was not material. 
The Effect of Risk-Management Instruments on Other Comprehensive Income (Loss)
The effective portion of risk-management instruments that was recognized in other comprehensive income 
(loss) is as follows:
2024
2023
2022
Net investment hedges:
Foreign currency-denominated notes
$ 
337.9 $ 
(219.9) $ 
324.9 
Cross-currency interest rate swaps
 
16.4  
(27.4)  
52.0 
Foreign currency forward contracts
 
343.1  
(107.1)  
(15.4) 
Cash flow hedges:
Forward-starting interest rate swaps
 
53.8  
85.6  
391.5 
Cross-currency interest rate swaps
 
24.9  
15.2  
29.8 
During the years ended December 31, 2024, 2023, and 2022, the amounts excluded from the assessment of 
hedge effectiveness recognized in other comprehensive income (loss) were not material. As of December 31, 
2024, the amount of pre-tax gains or losses on cash flow hedges expected to be reclassified from 
accumulated other comprehensive income (loss) to other–net, (income) expense over the next 12 months is 
not material.
81

Fair Value of Risk-Management Instruments
The following table summarizes certain fair value information at December 31, 2024 and 2023 for risk-
management assets and liabilities measured at fair value on a recurring basis:
December 31, 2024
Risk-management instruments
Interest rate contracts designated as fair 
value hedges:
Other current liabilities
$ 
(2.0) $ 
— $ 
(2.0) $ 
— $ 
(2.0) 
Other noncurrent liabilities
 
(117.8)  
—  
(117.8)  
—  
(117.8) 
Cross-currency interest rate contracts 
designated as net investment hedges:
Other receivables
 
10.3  
—  
10.3  
—  
10.3 
Cross-currency interest rate contracts 
designated as cash flow hedges:
Other noncurrent assets
 
50.7  
—  
50.7  
—  
50.7 
Foreign exchange contracts designated as 
net investment hedges:
Other receivables
 
297.0  
—  
297.0  
—  
297.0 
Foreign exchange contracts not 
designated as hedging instruments:
Other receivables
 
39.5  
—  
39.5  
—  
39.5 
Other current liabilities
 
(93.4)  
—  
(93.4)  
—  
(93.4) 
Contingent consideration liabilities:
Other noncurrent liabilities
 
(32.3)  
—  
—  
(32.3)  
(32.3) 
 
Fair Value Measurements Using
 
Carrying
Amount
Quoted Prices 
in Active 
Markets for 
Identical 
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair
Value
82

December 31, 2023
Risk-management instruments
Interest rate contracts designated as fair 
value hedges:
Other current liabilities
$ 
(2.4) $ 
— $ 
(2.4) $ 
— $ 
(2.4) 
Other noncurrent liabilities
 
(100.3)  
—  
(100.3)  
—  
(100.3) 
Interest rate contracts designated as cash 
flow hedges:
Other noncurrent assets
 
291.2  
—  
291.2  
—  
291.2 
Cross-currency interest rate contracts 
designated as net investment hedges:
Other current liabilities
 
(28.4)  
—  
(28.4)  
—  
(28.4) 
Other noncurrent liabilities
 
(3.5)  
—  
(3.5)  
—  
(3.5) 
Cross-currency interest rate contracts 
designated as cash flow hedges:
Other receivables
 
113.8  
—  
113.8  
—  
113.8 
Other noncurrent assets
 
63.1  
—  
63.1  
—  
63.1 
Foreign exchanges contracts designated 
as hedging instruments:
Other current liabilities
 
(115.8)  
—  
(115.8)  
—  
(115.8) 
Foreign exchange contracts not 
designated as hedging instruments:
Other receivables
 
129.6  
—  
129.6  
—  
129.6 
Other current liabilities
 
(55.9)  
—  
(55.9)  
—  
(55.9) 
Contingent consideration liabilities:
Other current liabilities
 
(39.5)  
—  
—  
(39.5)  
(39.5) 
Other noncurrent liabilities
 
(64.4)  
—  
—  
(64.4)  
(64.4) 
 
Fair Value Measurements Using
 
Carrying
Amount
Quoted Prices 
in Active 
Markets for 
Identical 
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair
Value
Risk-management instruments above are disclosed on a gross basis. There are various rights of setoff 
associated with certain of the risk-management instruments above that are subject to enforceable master 
netting arrangements or similar agreements. Although various rights of setoff and master netting 
arrangements or similar agreements may exist with the individual counterparties to the risk-management 
instruments above, individually, these financial rights are not material.
Contingent consideration liabilities relate to our liabilities arising in connection with the CVRs issued as a 
result of acquisitions of businesses. The fair values of the CVR liabilities were estimated using a discounted 
cash flow analysis and Level 3 inputs, including projections representative of a market participant's view of the 
expected cash payments associated with the agreed upon regulatory milestones based on probabilities of 
technical success, timing of the potential milestone events for the compounds, and estimated discount rates. 
83

Note 8: Goodwill and Other Intangibles
Goodwill
Goodwill results from excess consideration in a business combination over the fair value of identifiable net 
assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually, or more frequently 
if impairment indicators are present, by first assessing qualitative factors to determine whether it is more likely 
than not that the fair value is less than its carrying amount. If we conclude it is more likely than not that the fair 
value is less than the carrying amount, a quantitative test that compares the fair value to its carrying value is 
performed to determine the amount of any impairment. The change in goodwill during 2024 was primarily 
related to our acquisition of a manufacturing site in Wisconsin. See Note 3 for additional information.
No impairments occurred with respect to the carrying value of goodwill for the years ended December 31, 
2024, 2023, and 2022.
Other Intangibles
The components of intangible assets other than goodwill at December 31 were as follows:
 
2024
2023
Carrying
Amount, 
Gross
Accumulated
Amortization
Carrying
Amount, 
Net
Carrying
Amount, 
Gross
Accumulated
Amortization
Carrying
Amount, 
Net
Finite-lived intangible assets:
Marketed products
$ 8,090.2 $ (2,821.6) $ 5,268.6 $ 8,216.8 $ (2,277.0) $ 5,939.8 
Indefinite-lived intangible 
assets:
Acquired IPR&D
 
897.7  
—  
897.7  
966.8  
—  
966.8 
Other intangibles
$ 8,987.9 $ (2,821.6) $ 6,166.3 $ 9,183.6 $ (2,277.0) $ 6,906.6 
Marketed products consist primarily of the amortized cost of the rights to assets acquired in business 
combinations and approved for marketing in a significant global jurisdiction (U.S., Europe, and Japan) and 
capitalized milestone payments. For transactions other than a business combination, we capitalize milestone 
payments incurred at or after the product has obtained regulatory approval for marketing.
Acquired IPR&D consists of the fair values of acquired IPR&D projects acquired in business combinations, 
adjusted for subsequent impairments, if any. The costs of acquired IPR&D projects acquired directly in a 
transaction other than a business combination are capitalized as other intangible assets if the projects have 
an alternative future use; otherwise, they are expensed immediately. See Note 3 for significant acquired 
IPR&D projects that had no alternative future use. 
Several methods may be used to determine the estimated fair value of other intangibles acquired in a 
business combination. We utilize the "income method," which is a Level 3 fair value measurement and applies 
a probability weighting that considers the risk of development and commercialization to the estimated future 
net cash flows that are derived from projected revenues and estimated costs. These projections are based on 
factors such as relevant market size, patent protection, historical pricing of similar products, analyst 
expectations, and expected industry trends. The estimated future net cash flows are then discounted to the 
present value using an appropriate discount rate. This analysis is performed for each asset independently. 
The acquired IPR&D assets are treated as indefinite-lived intangible assets until completion or abandonment 
of the projects, at which time the assets are tested for impairment and amortized over the remaining useful life 
or written off, as appropriate. 
Indefinite-lived intangible assets are reviewed for impairment at least annually, or more frequently if 
impairment indicators are present, by first assessing qualitative factors to determine whether it is more likely 
than not that the fair value of the asset is less than its carrying amount. If we conclude it is more likely than 
not that the fair value is less than the carrying amount, a quantitative test that compares the fair value of the 
intangible asset to its carrying value is performed to determine the amount of any impairment. Finite-lived 
intangible assets are reviewed for impairment when an indicator of impairment is present. When required, a 
comparison of fair value to the carrying amount of assets is performed to determine the amount of any 
impairment. When determining the fair value of indefinite-lived acquired IPR&D as well as the fair value of 
finite-lived intangible assets for impairment testing purposes, we utilize the "income method" discussed 
above. 
84

Intangible assets with finite lives are capitalized and are amortized primarily to cost of sales over their 
estimated useful lives, ranging from one to 20 years. As of December 31, 2024, the remaining weighted-
average amortization period for finite-lived intangible assets was approximately 12 years. 
Amortization expense related to finite-lived intangible assets was as follows:
2024
2023
2022
Amortization expense
$ 
552.9 $ 
505.6 $ 
579.7 
The estimated amortization expense for each of the next five years associated with our finite-lived intangible 
assets as of December 31, 2024 is as follows:
2025
2026
2027
2028
2029
Estimated amortization expense
$ 500.6 $ 490.0 $ 488.0 $ 481.3 $ 467.2 
Note 9: Property and Equipment
Property and equipment is stated on the basis of cost. Provisions for depreciation of buildings and equipment 
are computed generally by the straight-line method at rates based on their estimated useful lives (12 to 50 
years for buildings and three to 25 years for equipment). We review the carrying value of long-lived assets for 
potential impairment on a periodic basis and whenever events or changes in circumstances indicate the 
carrying value of an asset may not be recoverable. Impairment is determined by comparing projected 
undiscounted cash flows to be generated by the asset to its carrying value. If an impairment is identified, a 
loss is recorded equal to the excess of the asset's net book value over its fair value, and the cost basis is 
adjusted.
At December 31, property and equipment consisted of the following:
2024
2023
Land
$ 
382.0 $ 
319.8 
Buildings
 
8,806.8  
8,280.0 
Equipment
 
11,457.8  
10,329.0 
Construction in progress
 
8,244.8  
5,084.1 
 
28,891.4  
24,012.9 
Less accumulated depreciation
 
(11,789.0)  
(11,099.3) 
Property and equipment, net
$ 17,102.4 $ 12,913.6 
Depreciation expense related to property and equipment was as follows:
2024
2023
2022
Depreciation expense
$ 
1,058.0 $ 
901.9 $ 
816.6 
Capitalized interest costs were not material for the years ended December 31, 2024, 2023, and 2022. 
The following table summarizes long-lived assets by geographical area:
2024
2023
Long-lived assets(1):
U.S. and Puerto Rico
$ 13,401.5 $ 
9,993.2 
Ireland
 
3,205.0  
2,722.6 
Rest of world
 
2,158.9  
1,784.2 
Long-lived assets
$ 18,765.4 $ 14,500.0 
(1) Long-lived assets consist of property and equipment, net, operating lease assets, and unamortized computer software costs. 
85

Note 10: Leases
We determine if an arrangement is a lease at inception. We have leases with terms up to 15 years primarily 
for corporate offices, research and development facilities, vehicles, and equipment, including some of which 
have options to extend and/or early-terminate the leases. We determine the lease term by assuming the 
exercise of any renewal and/or early-termination options that are reasonably assured.
Operating lease right-of-use assets are presented as other noncurrent assets in our consolidated balance 
sheets, and the current and long-term portions of operating lease liabilities are included in other current 
liabilities and other noncurrent liabilities, respectively, in our consolidated balance sheets. Short-term leases, 
which are deemed at inception to have a lease term of 12 months or less, are not recorded on the 
consolidated balance sheets. 
Operating lease assets represent our right to use an underlying asset for the lease term, and operating lease 
liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and 
liabilities are recognized at commencement date based on the present value of lease payments over the 
lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate 
based on the information available at commencement date in determining the present value of lease 
payments. 
Lease expense for operating lease assets, which is recognized on a straight-line basis over the lease term, 
was $209.6 million, $171.2 million, and $148.8 million during the years ended December 31, 2024, 2023, and 
2022, respectively. Variable lease payments, which represent non-lease components such as maintenance, 
insurance and taxes, and which vary due to changes in facts or circumstances occurring after the 
commencement date other than the passage of time, are expensed in the period in which the payment 
obligation is incurred and were not material during the years ended December 31, 2024, 2023, and 2022. 
Short-term lease expense was not material during the years ended December 31, 2024, 2023, and 2022.
Supplemental balance sheet information related to operating leases as of December 31 was as follows:
2024
2023
Operating lease right-of-use assets
$ 
1,050.1 $ 
1,024.2 
Operating lease liabilities, current portion
 
175.7  
156.3 
Operating lease liabilities, noncurrent portion
 
970.9  
948.5 
Weighted-average remaining lease term
9 years
9 years
Weighted-average discount rate
 4.6 %
 4.4 %
Supplemental cash flow information related to operating leases was as follows:
2024
2023
2022
Operating cash flows from operating leases
$ 
201.8 $ 
171.0 $ 
149.7 
Right-of-use assets obtained in exchange for new operating lease 
liabilities
 
210.0  
590.0  
155.4 
The annual minimum lease payments of our operating lease liabilities as of December 31, 2024 were as 
follows:
2025
$ 
221.2 
2026
 
189.1 
2027
 
172.2 
2028
 
130.3 
2029
 
108.6 
After 2029
 
625.6 
Total lease payments
 
1,447.0 
Less imputed interest
 
300.4 
Total
$ 
1,146.6 
86

Finance leases are included in property and equipment, short-term borrowings and current maturities of long-
term debt, and long-term debt in our consolidated balance sheets. Finance leases are not material to our 
consolidated financial statements.
Note 11: Borrowings
Debt at December 31 consisted of the following:
2024
2023
Short-term commercial paper borrowings
$ 
4,337.6 $ 
6,189.4 
Long-term notes 
 
29,474.0 
19,104.6
Other long-term debt
 
6.8  
6.5 
Unamortized debt issuance costs
 
(160.8)  
(90.5) 
Fair value adjustment on hedged long-term notes
 
(13.4)  
15.3 
Total debt
 
33,644.2  
25,225.3 
Less current portion
 
(5,117.1)  
(6,904.5) 
Long-term debt
$ 28,527.1 $ 18,320.8 
The weighted-average effective borrowing rates on short-term commercial paper borrowings were 4.61 
percent and 5.39 percent at December 31, 2024 and 2023, respectively.
87

The following table summarizes long-term notes at December 31:
2024
2023
0.15% Swiss franc denominated notes due 2024
$ 
— $ 
714.6 
7.125% notes due 2025
 
217.5  
217.5 
2.75% notes due 2025
 
560.6  
560.6 
5.0% notes due 2026
 
750.0  
750.0 
1.625% euro denominated notes due 2026
 
779.1  
830.7 
4.500% notes due 2027
 
1,000.0  
— 
5.5% notes due 2027
 
364.3  
364.3 
3.1% notes due 2027
 
401.5  
401.5 
4.150% notes due 2027
 
750.0  
— 
0.45% Swiss franc denominated notes due 2028
 
441.6  
476.4 
4.500% notes due 2029
 
1,000.0  
— 
3.375% notes due 2029
 
930.6  
930.6 
4.200% notes due 2029
 
1,000.0  
— 
0.42% Japanese yen denominated notes due 2029
 
145.6  
162.5 
2.125% euro denominated notes due 2030
 
779.1  
830.7 
0.625% euro denominated notes due 2031
 
623.2  
664.6 
4.7% notes due 2033
 
1,000.0  
1,000.0 
0.50% euro denominated notes due 2033
 
623.2  
664.6 
4.700% notes due 2034
 
1,500.0  
— 
4.600% notes due 2034
 
1,250.0  
— 
0.56% Japanese yen denominated notes due 2034
 
58.9  
65.8 
6.77% notes due 2036
 
158.6  
158.6 
5.55% notes due 2037
 
444.7  
444.7 
5.95% notes due 2037
 
266.8  
266.8 
3.875% notes due 2039
 
240.3  
240.3 
1.625% British pound denominated notes due 2043
 
313.8  
318.5 
4.65% notes due 2044
 
38.3  
38.3 
3.7% notes due 2045
 
386.8  
386.8 
3.95% notes due 2047
 
347.0  
347.0 
3.95% notes due 2049
 
958.2  
958.2 
1.70% euro denominated notes due 2049
 
1,038.7  
1,107.6 
0.97% Japanese yen denominated notes due 2049
 
48.5  
54.2 
2.25% notes due 2050
 
1,250.0  
1,250.0 
1.125% euro denominated notes due 2051
 
519.4  
553.8 
4.875% notes due 2053
 
1,250.0  
1,250.0 
5.000% notes due 2054
 
1,500.0  
— 
5.050% notes due 2054
 
1,250.0  
— 
4.15% notes due 2059
 
591.3  
591.3 
2.50% notes due 2060
 
850.0  
850.0 
1.375% euro denominated notes due 2061
 
727.1  
775.3 
4.95% notes due 2063
 
1,000.0  
1,000.0 
5.100% notes due 2064
 
1,500.0  
— 
5.200% notes due 2064
 
750.0  
— 
Unamortized note discounts
 
(130.7)  
(121.2) 
Total long-term notes
$ 
29,474.0 $ 
19,104.6 
88

The weighted-average effective borrowing rate for each issuance of the long term-notes approximates the 
stated interest rate. 
At December 31, 2024, we had a total of $8.45 billion of unused committed bank credit facilities, which 
consisted primarily of a $3.00 billion credit facility that expires in December 2028 and a $5.00 billion 364-day 
facility that expires in September 2025, both of which are available to support our commercial paper program. 
We have not drawn against the $3.00 billion and $5.00 billion facilities as of December 31, 2024. Of the 
remaining committed bank credit facilities, the outstanding balances as of December 31, 2024 and 2023 were 
not material. Compensating balances and commitment fees are not material, and there are no conditions that 
are probable of occurring under which the lines may be withdrawn. 
In February 2025, we issued $1.00 billion of 4.550 percent fixed-rate notes due in 2028, $1.25 billion of 4.750 
percent fixed-rate notes due in 2030, $1.00 billion of 4.900 percent fixed-rate notes due in 2032, $1.25 billion 
of 5.100 percent fixed-rate notes due in 2035, $1.25 billion of 5.500 percent fixed-rate notes due in 2055, and 
$750.0 million of 5.600 percent fixed-rate notes due in 2065, all with interest to be paid semi-annually. We 
expect to use the net cash proceeds from the offering to fund potential business development activities, as 
well as general business purposes, including the repayment of outstanding commercial paper.
In August 2024, we issued $750.0 million of 4.150 percent fixed-rate notes due in 2027, $1.00 billion of 4.200 
percent fixed-rate notes due in 2029, $1.25 billion of 4.600 percent fixed-rate notes due in 2034, $1.25 billion 
of 5.050 percent fixed-rate notes due in 2054, and $750.0 million of 5.200 percent fixed-rate notes due in 
2064, all with interest to be paid semi-annually. We used a portion of the net cash proceeds from the offering 
of $4.96 billion to fund the acquisition of Morphic and related fees and expenses, with any remaining funds 
used for general business purposes, including the repayment of outstanding commercial paper.
In February 2024, we issued $1.00 billion of 4.500 percent fixed-rate notes due in 2027, $1.00 billion of 4.500 
percent fixed-rate notes due in 2029, $1.50 billion of 4.700 percent fixed-rate notes due in 2034, $1.50 billion 
of 5.000 percent fixed-rate notes due in 2054, and $1.50 billion of 5.100 percent fixed-rate notes due in 2064, 
all with interest to be paid semi-annually. We used, or may be using, the net cash proceeds from the offering 
of $6.45 billion for general business purposes, including the repayment of outstanding commercial paper, 
repayment of current maturities of long-term debt, and repayment of the $750.0 million of 5.000 percent fixed-
rate notes due in 2026.
In February 2023, we issued $750.0 million of 5.000 percent fixed-rate notes due in 2026, $1.00 billion of 
4.700 percent fixed-rate notes due in 2033, $1.25 billion of 4.875 percent fixed-rate notes due in 2053, and 
$1.00 billion of 4.950 percent fixed-rate notes due in 2063, all with interest to be paid semi-annually. We used 
the net cash proceeds from the offering of $3.96 billion for general business purposes, including the 
repayment of outstanding commercial paper. 
The aggregate amounts of maturities on long-term debt for the next five years are as follows:
2025
2026
2027
2028
2029
Maturities on long-term debt
$ 780.9 $ 1,529.1 $ 2,515.8 $ 441.6 $ 3,076.1 
We have converted approximately 5 percent of our long-term fixed-rate notes to floating rates through the use 
of interest rate swaps. The weighted-average effective borrowing rates based on long-term debt obligations 
and interest rates at December 31, 2024 and 2023, including the effects of interest rate swaps for hedged 
debt obligations, were 3.95 percent and 3.37 percent, respectively.
The aggregate amount of cash payments for interest on borrowings, net of capitalized interest, are as follows:
2024
2023
2022
Cash payments for interest on borrowings
$ 
577.5 $ 
404.2 $ 
323.7 
In accordance with the requirements of derivatives and hedging guidance, the portion of our fixed-rate debt 
obligations that is hedged as a fair value hedge is reflected in the consolidated balance sheets as an amount 
equal to the sum of the debt's carrying value plus the fair value adjustment representing changes in fair value 
of the hedged debt attributable to movements in market interest rates subsequent to the inception of the 
hedge.
89

Note 12: Stock-Based Compensation
Our stock-based compensation expense consists of restricted stock units (RSUs), shareholder value awards 
(SVAs), performance awards (PAs), and relative value awards (RVAs). We recognize the fair value of stock-
based compensation as expense over the requisite service period of the individual grantees, which generally 
equals the vesting period. We provide newly issued shares of our common stock and treasury stock to satisfy 
the issuance of RSU, SVA, PA, and RVA shares.
Stock-based compensation expense and the related tax benefits were as follows:
2024
2023
2022
Stock-based compensation expense
$ 
645.6 $ 
628.5 $ 
371.1 
Tax benefit
 
135.6  
132.0  
77.9 
At December 31, 2024, stock-based compensation awards may be granted under the 2002 Lilly Stock Plan 
for not more than 48.8 million additional shares. 
Restricted Stock Units
RSUs are granted to certain employees and are payable in shares of our common stock. RSU shares are 
accounted for at fair value based upon the closing stock price on the date of grant. The corresponding 
expense is amortized over the vesting period, typically three years. The weighted-average fair values of RSU 
awards granted during the years ended December 31, 2024, 2023, and 2022 were $749.74, $339.30, and 
$239.88, respectively. The number of shares ultimately issued for the RSU program remains constant with the 
number of shares originally granted less forfeitures. Pursuant to this program, 0.9 million, 1.0 million, and 1.0 
million shares were granted and approximately 0.3 million, 0.5 million, and 0.8 million shares were issued 
during the years ended December 31, 2024, 2023, and 2022, respectively. We expect to issue approximately 
0.5 million shares in 2025. As of December 31, 2024, the total estimated remaining unrecognized 
compensation cost related to nonvested RSUs was $485.1 million, which will be amortized over the weighted-
average remaining requisite service period of 23 months.
Shareholder Value Award Program
SVAs are granted to officers and management and are payable in shares of our common stock. The number 
of shares actually issued, if any, varies depending on our stock price at the end of the three-year vesting 
period compared to pre-established target stock prices. We measure the fair value of the SVA unit on the 
grant date using a Monte Carlo simulation model. The model utilizes multiple input variables that determine 
the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of 
the award. Expected volatilities utilized in the model are based on implied volatilities from traded options on 
our stock, historical volatility of our stock price, and other factors. Similarly, the dividend yield is based on 
historical experience and our estimate of future dividend yields. The risk-free interest rate is derived from the 
U.S. Treasury yield curve in effect at the time of grant. The weighted-average fair values of the SVA units 
granted during the years ended December 31, 2024, 2023, and 2022 were $1,030.87, $349.63, and $203.88, 
respectively, determined using the following assumptions:
2024
2023
2022
Expected dividend yield
 0.70 %
 1.07 %
 1.60 %
Risk-free interest rate
 4.26 
 4.08 
 1.57 
Volatility
 28.64 
 29.87 
 32.99 
Pursuant to this program, approximately 0.2 million, 0.3 million, and 0.5 million shares were issued during the 
years ended December 31, 2024, 2023, and 2022, respectively. We expect to issue approximately 0.3 million 
shares in 2025. As of December 31, 2024, the total estimated remaining unrecognized compensation cost 
related to nonvested SVAs was $61.4 million, which will be amortized over the weighted-average remaining 
requisite service period of 21 months.
90

Performance Award Program
PAs were granted to officers and management prior to 2024 and are payable in shares of our common stock. 
The number of PA shares actually issued, if any, varied depending on the achievement of certain pre-
established earnings-per-share targets over a two-year period. PA shares were accounted for at fair value 
based upon the closing stock price on the date of grant and fully vest at the end of the measurement period. 
The fair values of PAs granted for the years ended December 31, 2023 and 2022 were, $335.86 and $234.93, 
respectively. Pursuant to this program, approximately 0.4 million, 0.5 million, and 0.7 million shares were 
issued during the years ended December 31, 2024, 2023, and 2022, respectively. We expect to issue 
approximately 0.6 million shares in 2025. As of December 31, 2024, there was no remaining unrecognized 
compensation cost related to PAs, as we discontinued the program.
Relative Value Award Program 
RVAs are granted to officers and management and are payable in shares of our common stock. The number 
of shares actually issued, if any, varies depending on the growth of our stock price at the end of the three-year 
vesting period compared to our peers. We measure the fair value of the RVA unit on the grant date using a 
Monte Carlo simulation model. The model utilizes multiple input variables that determine the probability of 
satisfying the market condition stipulated in the award grant and calculates the fair value of the award. 
Expected volatilities utilized in the model are based on implied volatilities from traded options on our stock, 
historical volatility of our stock price and our peers' stock price, and other factors. Similarly, the dividend yield 
is based on historical experience and our estimate of future dividend yields. The risk-free interest rate is 
derived from the U.S. Treasury yield curve in effect at the time of grant. The weighted-average fair value of 
the RVA units granted during the years ended December 31, 2024, 2023 and 2022 were $1,106.40, $397.95, 
and $230.00, respectively, determined using the following assumptions:
2024
2023
2022
Expected dividend yield
 0.70 %
 1.07 %
 1.60 %
Risk-free interest rate
 4.26 
 4.08 
 1.57 
Volatility
 27.69 
 31.25 
 32.86 
Pursuant to this program, approximately 0.1 million shares were issued during each of the years ended 
December 31, 2024 and 2023. We expect to issue approximately 0.1 million shares in 2025. As of 
December 31, 2024, the total estimated remaining unrecognized compensation cost related to nonvested 
RVAs was $27.5 million, which will be amortized over the weighted-average remaining requisite service period 
of 22 months.
Note 13: Shareholders' Equity
In 2024, 2023, and 2022, we repurchased $2.50 billion, $750.0 million, and $1.50 billion, respectively, of 
shares associated with our share repurchase programs. 
In 2024, we repurchased $2.50 billion of shares, which completed our $5.00 billion share repurchase program 
that our board authorized in May 2021. Our board authorized a $15.00 billion share repurchase program in 
December 2024. No shares were repurchased under this new program as of December 31, 2024. 
We have 5.0 million authorized shares of preferred stock. As of December 31, 2024 and 2023, no preferred 
stock was issued.
We have an employee benefit trust that held 50.0 million shares of our common stock at both December 31, 
2024 and 2023, to provide a source of funds to assist us in meeting our obligations under various employee 
benefit plans. The cost basis of the shares held in the trust was $3.01 billion at both December 31, 2024 and 
2023, and is shown as a reduction of shareholders' equity. Any dividend transactions between us and the trust 
are eliminated. Stock held by the trust is not considered outstanding in the computation of EPS. The assets of 
the trust were not used to fund any of our obligations under these employee benefit plans during the years 
ended December 31, 2024, 2023, and 2022.
91

Note 14: Income Taxes
Deferred taxes are recognized for the future tax effects of temporary differences between financial and 
income tax reporting based on enacted tax laws and rates. Deferred taxes related to global intangible low-
taxed income (GILTI) are also recognized for the future tax effects of temporary differences.
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax 
position, based on its technical merits, will be sustained upon examination by the taxing authority. The tax 
benefits recognized in the financial statements from such a position are measured based on the largest 
benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution.
Following is the composition of income tax expense:
2024
2023
2022
Current:
Federal(1)
$ 
3,312.0 $ 
3,017.9 $ 
2,153.6 
Foreign
 
1,430.3  
613.0  
547.7 
State
 
31.2  
24.3  
45.5 
Total current tax expense
 
4,773.5  
3,655.2  
2,746.8 
Deferred:
Federal
 
(2,178.7)  
(2,369.0)  
(1,992.4) 
Foreign
 
(473.1)  
34.2  
(78.2) 
State
 
(31.3)  
(6.2)  
(114.6) 
Total deferred tax benefit
 
(2,683.1)  
(2,341.0)  
(2,185.2) 
Income taxes
$ 
2,090.4 $ 
1,314.2 $ 
561.6 
(1) The 2024, 2023, and 2022 current tax expense includes $129.9 million, $69.3 million, and $189.5 million of tax benefit, respectively, 
from utilization of net operating loss and other tax carryforwards. 
92

Significant components of our deferred tax assets and liabilities as of December 31 were as follows:
2024
2023
Deferred tax assets:
Capitalized research and development
$ 
4,598.7 $ 
2,997.5 
Purchases of intangible assets
 
1,781.4  
1,981.9 
Sales rebates and discounts
 
1,775.7  
1,632.5 
Correlative tax adjustments
 
1,604.3  
1,031.3 
Tax loss and other tax carryforwards
 
586.9  
527.2 
Tax credit carryforwards
 
577.0  
577.0 
Compensation and benefits
 
565.2  
521.4 
Foreign tax redeterminations
 
334.8  
323.7 
Operating lease liabilities
 
240.5  
253.3 
Other
 
358.6  
463.4 
Total gross deferred tax assets
 
12,423.1  
10,309.2 
Valuation allowances
 
(963.7)  
(913.5) 
Total deferred tax assets
 
11,459.4  
9,395.7 
Deferred tax liabilities:
Intangibles
 
(1,176.4)  
(1,338.2) 
Earnings of foreign subsidiaries
 
(773.1)  
(796.6) 
Prepaid employee benefits
 
(611.0)  
(460.6) 
Property and equipment
 
(557.6)  
(495.2) 
Operating lease assets
 
(219.1)  
(237.1) 
Financial instruments
 
(137.3)  
(75.1) 
Inventories
 
(58.2)  
(619.5) 
Total deferred tax liabilities
 
(3,532.7)  
(4,022.3) 
Deferred tax assets - net
$ 
7,926.7 $ 
5,373.4 
The deferred tax asset and related valuation allowance amounts for U.S. federal, international, and state net 
operating losses and tax credits shown above have been reduced for differences between financial reporting 
and tax return filings.
At December 31, 2024, based on filed tax returns we have tax credit carryforwards and carrybacks of 
$1.13 billion available to reduce future income taxes; $148.8 million, if unused, will expire in 2026, and 
$53.6 million, if unused, will expire between 2030 and 2044. The remaining portion of the tax credit 
carryforwards is related to federal tax credits of $68.0 million, international tax credits of $109.4 million, and 
state tax credits of $754.8 million, all of which are fully reserved.
At December 31, 2024, based on filed tax returns we have net operating losses and other carryforwards for 
U.S. federal and international tax purposes of $1.74 billion available to reduce future income taxes: $5.8 
million will expire by 2029, $355.7 million will expire between 2030 and 2044, and $861.5 million of the 
carryforwards will never expire. The remaining net operating losses and other carryforwards for U.S. federal 
and international tax purposes of $481.0 million and $32.4 million, respectively, are fully reserved. Deferred 
tax assets related to state net operating losses and other carryforwards of $282.6 million are fully reserved as 
of December 31, 2024.
At December 31, 2024 and 2023, prepaid expenses included prepaid taxes of $7.13 billion and $4.26 billion, 
respectively.
Domestic and Puerto Rican companies contributed approximately 20 percent, 14 percent, and 33 percent for 
the years ended December 31, 2024, 2023, and 2022, respectively, to consolidated income before income 
taxes. 
93

Substantially all of the unremitted earnings of our foreign subsidiaries are considered not to be indefinitely 
reinvested for continued use in our foreign operations. At December 31, 2024 and 2023, we accrued an 
immaterial amount of foreign withholding taxes and state income taxes that would be owed upon future 
distributions of unremitted earnings of our foreign subsidiaries that are not indefinitely reinvested. For the 
amount considered to be indefinitely reinvested, it is not practicable to determine the amount of the related 
deferred income tax liability due to the complexities in the tax laws and assumptions we would have to make.
Cash payments of U.S. federal, state, and foreign income taxes, net of refunds, were as follows: 
2024
2023
2022
Cash payments of income taxes
$ 
6,562.1 $ 
5,558.8 $ 
2,672.9 
 As of December 31, 2024, we have noncurrent income tax payables of $490.7 million that we expect to pay 
in 2026 and $3.57 billion that we cannot reasonably estimate the timing of future cash outflows.
Following is a reconciliation of the consolidated income tax expense applying the U.S. federal statutory rate to 
income before income taxes to reported consolidated income tax expense: 
2024
2023
2022
Income tax at the U.S. federal statutory tax rate
$ 
2,662.9 $ 
1,376.5 $ 
1,429.3 
Add (deduct):
Non-deductible acquired IPR&D(1)
 
566.0  
677.2  
68.3 
Foreign-derived intangible income deduction
 
(307.0)  
(236.7)  
(287.5) 
International operations, including Puerto Rico(2)
 
(302.1)  
(187.1)  
(299.5) 
General business credits
 
(290.6)  
(258.0)  
(155.0) 
Stock-based compensation(3)
 
(184.7)  
(79.9)  
(48.9) 
Valuation allowance release
 
(23.9)  
(4.2)  
(116.4) 
Other
 
(30.2)  
26.4  
(28.7) 
Income taxes
$ 
2,090.4 $ 
1,314.2 $ 
561.6 
(1) Non-deductible acquired IPR&D was primarily related to the acquisitions of Morphic in 2024, and DICE, Versanis, and Emergence in 
2023. See Note 3 for additional information related to acquisitions.
(2) Includes the impact of GILTI tax, Puerto Rico Excise Tax (for 2022), and other U.S. taxation of foreign income.
(3) Includes excess tax benefits from stock-based compensation and non-deductible stock-based compensation.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
2024
2023
2022
Beginning balance at January 1
$ 
3,395.0 $ 
2,987.0 $ 
2,798.3 
Additions based on tax positions related to the current year
 
694.2  
364.3  
274.2 
Additions for tax positions of prior years
 
41.7  
78.2  
34.6 
Reductions for tax positions of prior years
 
(63.1)  
(39.0)  
(10.9) 
Settlements
 
(33.4)  
(4.7)  
(44.8) 
Lapses of statutes of limitation
 
(8.9)  
(21.5)  
(11.8) 
Changes related to the impact of foreign currency translation
 
(49.7)  
30.7  
(52.6) 
Ending balance at December 31
$ 
3,975.8 $ 
3,395.0 $ 
2,987.0 
The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was 
$2.62 billion at December 31, 2024.
We file U.S. federal, foreign, and various state and local income tax returns. We are no longer subject to U.S. 
federal income tax examination for years before 2016. In most major foreign and state jurisdictions, we are no 
longer subject to income tax examination for years before 2014.
The U.S. examination of tax years 2019-2021 began in 2023 and remains ongoing. For tax years 2016-2018, 
we are pursuing competent authority assistance through the Mutual Agreement Procedure (MAP) process for 
the pricing of certain intercompany transactions. The resolution of both audit periods will likely extend beyond 
the next 12 months.
94

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense and were 
not material for the years ended December 31, 2024, 2023, and 2022. Our accrued interest and penalties 
related to unrecognized tax benefits were $594.2 million and $414.9 million at December 31, 2024 and 2023, 
respectively.
Note 15: Retirement Benefits
We use a measurement date of December 31 to determine the change in benefit obligation, change in plan 
assets, funded status, and amounts recognized in the consolidated balance sheets at December 31 for our 
defined benefit pension and retiree health benefit plans, which were as follows: 
 
Defined Benefit
Pension Plans
Retiree Health
Benefit Plans
2024
2023
2024
2023
Change in benefit obligation:
Benefit obligation at beginning of year
$ 14,257.9 $ 13,222.0 $ 1,310.3 $ 1,258.8 
Service cost
 
338.7  
290.4  
35.4  
31.8 
Interest cost
 
661.7  
648.2  
62.1  
61.3 
Actuarial (gain) loss
 
(1,083.6)  
590.5  
(96.5)  
34.5 
Benefits paid
 
(634.3)  
(610.5)  
(82.2)  
(80.6) 
Foreign currency exchange rate changes and other 
adjustments
 
(125.0)  
117.3  
(6.4)  
4.5 
Benefit obligation at end of year
 13,415.4  14,257.9  
1,222.7  
1,310.3 
Change in plan assets:
Fair value of plan assets at beginning of year
 13,708.7  13,195.8  
2,580.3  
2,492.5 
Actual return on plan assets
 
583.2  
881.9  
58.5  
166.8 
Employer contribution
 
115.3  
120.6  
9.2  
1.7 
Benefits paid
 
(634.3)  
(610.5)  
(82.2)  
(80.6) 
Foreign currency exchange rate changes and other 
adjustments
 
(114.5)  
120.9  
—  
(0.1) 
Fair value of plan assets at end of year
 13,658.4  13,708.7  
2,565.8  
2,580.3 
Funded status
 
243.0  
(549.2)  
1,343.1  
1,270.0 
Unrecognized net actuarial loss
 
2,662.9  
3,357.9  
149.3  
109.6 
Unrecognized prior service (benefit) cost
 
4.1  
6.4  
(3.7)  
(9.5) 
Net amount recognized
$ 2,910.0 $ 2,815.1 $ 1,488.7 $ 1,370.1 
Amounts recognized in the consolidated balance sheets 
consisted of:
Other noncurrent assets
$ 1,481.6 $ 
810.6 $ 1,484.6 $ 1,427.7 
Other current liabilities
 
(71.4)  
(70.4)  
(8.2)  
(8.3) 
Accrued retirement benefits
 
(1,167.2)  
(1,289.4)  
(133.3)  
(149.4) 
Accumulated other comprehensive loss
 
2,667.0  
3,364.3  
145.6  
100.1 
Net amount recognized
$ 2,910.0 $ 2,815.1 $ 1,488.7 $ 1,370.1 
The unrecognized net actuarial (gain) loss and unrecognized prior service (benefit) cost have not yet been 
recognized in net periodic pension costs and were included in accumulated other comprehensive loss at 
December 31, 2024 and 2023. Unrecognized net actuarial (gain) loss for the U.S. and Puerto Rico defined 
benefit pension and retiree health benefit plans are amortized over the average remaining service period of 
active employees in the plan. The amortization of actuarial (gains) losses for U.S. and Puerto Rico defined 
benefit pension plans are determined by using a 10% corridor of the greater of the market related value of 
assets or the projected benefit obligations.
The $930.1 million decrease in benefit obligation in 2024 was primarily driven by increases in the discount 
rates. The $1.09 billion increase in benefit obligation in 2023 was primarily driven by decreases in the 
discount rates.
95

The following represents our weighted-average assumptions:
 
Defined Benefit
Pension Plans
Retiree Health
Benefit Plans
2024
2023
2022
2024
2023
2022
Weighted-average assumptions used to determine net 
periodic benefit costs:
Discount rate
 4.8 %
 5.1 %
 2.8 %
 5.0 %
 5.2 %
 3.0 %
Rate of compensation increase
 4.3 
 4.3 
 3.5 
Expected return on plan assets
 8.1 
 8.1 
 8.1 
 7.3 
 7.3 
 7.3 
Weighted-average assumptions used to determine benefit 
obligation as of December 31:
Discount rate
 5.5 %
 4.8 %
 5.1 %
 5.7 %
 5.0 %
 5.2 %
Rate of compensation increase
 4.0 
 4.3 
 4.3 
We annually evaluate the expected return on plan assets in our defined benefit pension and retiree health 
benefit plans. In evaluating the expected return on plan assets, we consider many factors, with a primary 
analysis of current and projected market conditions; asset returns and asset allocations; and the views of 
leading financial advisers and economists. In U.S. and Puerto Rico, the expected return on plan assets uses 
a market-related value of assets. For U.S. dollar denominated investment grade debt securities and 
derivatives, the market-related value of assets is the actual fair value. For all other asset categories, the 
market-related value of assets uses a method that recognizes investment gains and losses arising from the 
difference between expected and actual returns on plan assets over a five-year period.
We may also review our historical assumptions compared with actual results, as well as the assumptions and 
trend rates utilized by similar plans, where applicable. 
Given the design of our retiree health benefit plans, healthcare-cost trend rates do not have a material impact 
on our financial condition or results of operations.
Expected benefit payments, which reflect expected future service, are as follows:
2025
2026
2027
2028
2029
2030 - 2034
Defined benefit pension plans
$ 
677.0 $ 
694.4 $ 
721.4 $ 
746.9 $ 
778.4 $ 4,388.7 
Retiree health benefit plans
 
93.4  
93.6  
94.4  
95.0  
95.1  
477.5 
Amounts relating to defined benefit pension plans with projected benefit obligations in excess of plan assets 
were as follows at December 31:
 
2024
2023
Projected benefit obligation
$ 
2,297.0 $ 
2,395.3 
Fair value of plan assets
 
1,058.4  
1,035.4 
Amounts relating to defined benefit pension plans and retiree health benefit plans with accumulated benefit 
obligations in excess of plan assets were as follows at December 31:
Defined Benefit
Pension Plans
Retiree Health 
Benefit Plans
 
2024
2023
2024
2023
Accumulated benefit obligation
$ 1,655.8 $ 1,659.5 $ 
141.5 $ 
157.7 
Fair value of plan assets
 
595.0  
564.3  
—  
— 
The total accumulated benefit obligation for our defined benefit pension plans was $12.18 billion and 
$12.74 billion at December 31, 2024 and 2023, respectively.
96

Net periodic (benefit) cost included the following components:
 
Defined Benefit
Pension Plans
Retiree Health
Benefit Plans
2024
2023
2022
2024
2023
2022
Components of net periodic (benefit) 
cost:
Service cost
$ 338.7 $ 290.4 $ 351.7 $ 
35.4 $ 
31.8 $ 
46.6 
Interest cost
 
661.7  
648.2  
398.1  
62.1  
61.3  
37.8 
Expected return on plan assets
 (1,112.2)  (1,055.0)  (947.6)  (192.3)  (182.1)  (152.1) 
Amortization of prior service (benefit) 
cost
 
2.1  
2.4  
2.4  
(5.6)  
(52.9)  
(54.8) 
Recognized actuarial (gain) loss
 
125.1  
122.0  
342.4  
(2.6)  
(5.8)  
0.9 
Net periodic (benefit) cost
$ 
15.4 $ 
8.0 $ 147.0 $ (103.0) $ (147.7) $ (121.6) 
The following represents the amounts recognized in other comprehensive income (loss) for the years ended 
December 31:
Defined Benefit
Pension Plans
Retiree Health
Benefit Plans
2024
2023
2022
2024
2023
2022
Actuarial gain (loss) arising during period
$ 554.5 $ (763.9) $ 823.6 $ (37.2) $ (49.8) $ (552.2) 
Amortization of prior service (benefit) cost 
included in net income
 
2.1  
2.4  
2.4  
(5.6)  
(52.9)  
(54.8) 
Amortization of net actuarial (gain) loss 
included in net income
 
125.1  
122.0  
342.4  
(2.6)  
(5.8)  
0.9 
Foreign currency exchange rate changes 
and other
 
15.6  
(29.2)  
55.5  
(0.1)  
0.7  
(0.9) 
Total other comprehensive income (loss) 
during period
$ 697.3 $ (668.7) $ 1,223.9 $ (45.5) $ (107.8) $ (607.0) 
We have defined contribution savings plans that cover our eligible employees worldwide. The purpose of 
these plans is generally to provide additional financial security during retirement by providing employees with 
an incentive to save. Our contributions to the plans are based on employee contributions and the level of our 
match. Expenses under the plans totaled $249.7 million, $222.6 million, and $170.6 million for the years 
ended December 31, 2024, 2023, and 2022, respectively.
Benefit Plan Investments
Our benefit plan investment policies are set with specific consideration of return and risk requirements in 
relationship to the respective liabilities. U.S. and Puerto Rico plans represent approximately 85 percent of our 
global investments. Given the long-term nature of our liabilities, these plans have the flexibility to manage an 
above-average degree of risk in the asset portfolios. At the investment-policy level, there are no specifically 
prohibited investments. However, within individual investment manager mandates, restrictions and limitations 
are contractually set to align with our investment objectives, ensure risk control, and limit concentrations.
We manage our portfolio to minimize concentration of risk by allocating funds within asset categories. In 
addition, within a category we use different managers with various management objectives to eliminate any 
significant concentration of risk.
Our global benefit plans may enter into contractual arrangements (derivatives) to implement the local 
investment policy or manage particular portfolio risks. Derivatives are principally used to increase or decrease 
exposure to a particular public equity, fixed income, commodity, or currency market more rapidly or less 
expensively than could be accomplished through the use of the cash markets. The plans utilize both 
exchange-traded and over-the-counter instruments. The maximum exposure to either a market or 
counterparty credit loss is limited to the carrying value of the receivable, and is managed within contractual 
limits. We expect all of our counterparties to meet their obligations. The gross values of these derivative 
receivables and payables are not material to the global asset portfolio, and their values are reflected within 
the tables below.
97

The defined benefit pension and retiree health benefit plan allocation for the U.S. and Puerto Rico currently 
comprises approximately 80 percent growth investments and 20 percent fixed-income investments. The 
growth investment allocation encompasses U.S. and international public equity securities, hedge funds, 
private equity-like investments, and real estate. These portfolio allocations are intended to reduce overall risk 
by providing diversification, while seeking moderate to high returns over the long term.
Public equity securities are well diversified and invested in U.S. and international small-to-large companies 
across various asset managers and styles. The remaining portion of the growth portfolio is invested in private 
alternative investments.
Fixed-income investments primarily consist of fixed-income securities in U.S. treasuries and agencies, 
emerging market debt obligations, corporate bonds, bank loans, mortgage-backed securities, commercial 
mortgage-backed obligations, and any related repurchase agreements.
Hedge funds are privately owned institutional investment funds that generally have moderate liquidity. Hedge 
funds seek specified levels of absolute return regardless of overall market conditions, and generally have low 
correlations to public equity and debt markets. Hedge funds often invest substantially in financial market 
instruments (stocks, bonds, commodities, currencies, derivatives, etc.) using a very broad range of trading 
activities to manage portfolio risks. Hedge fund strategies focus primarily on security selection and seek to be 
neutral with respect to market moves. Common groupings of hedge fund strategies include relative value, 
tactical, and event driven. Relative value strategies include arbitrage, when the same asset can 
simultaneously be bought and sold at different prices, achieving an immediate profit. Tactical strategies often 
take long and short positions to reduce or eliminate overall market risks while seeking a particular investment 
opportunity. Event strategy opportunities can evolve from specific company announcements such as mergers 
and acquisitions, and typically have little correlation to overall market directional movements. Our hedge fund 
investments are made through limited partnership interests in fund-of-funds structures and directly into hedge 
funds. Plan holdings in hedge funds are valued based on net asset values (NAVs) calculated by each fund or 
general partner, as applicable, and we have the ability to redeem these investments at NAV.
Private equity-like investment funds typically have low liquidity and are made through long-term partnerships 
or joint ventures that invest in pools of capital invested in primarily non-publicly traded entities. Underlying 
investments include venture capital (early stage investing), buyout, special situations, private debt, and 
private real estate investments. Private equity management firms typically acquire and then reorganize private 
companies to create increased long term value. Private equity-like funds usually have a limited life of 
approximately 10-15 years, and require a minimum investment commitment from their limited partners. Our 
private equity-like investments are made both directly into funds and through fund-of-funds structures to 
ensure broad diversification of management styles and assets across the portfolio. Plan holdings in private 
equity-like investments are valued using the value reported by the partnership, adjusted for known cash flows 
and significant events through our reporting date. Values provided by the partnerships are primarily based on 
analysis of and judgments about the underlying investments. Inputs to these valuations include underlying 
NAVs, discounted cash flow valuations, comparable market valuations, and may also include adjustments for 
currency, credit, liquidity and other risks as applicable. The vast majority of these private partnerships provide 
us with annual audited financial statements including their compliance with fair valuation procedures 
consistent with applicable accounting standards.
Real estate is composed of public holdings. Real estate investments in registered investment companies that 
trade on an exchange are classified as Level 1 on the fair value hierarchy. Real estate investments in funds 
measured at fair value on the basis of NAV provided by the fund manager are classified as such. These NAVs 
are developed with inputs including discounted cash flow, independent appraisal, and market comparable 
analyses.
Other assets include cash and cash equivalents and mark-to-market value of derivatives.
The cash value of the trust-owned insurance contract is primarily invested in investment-grade publicly traded 
equity and fixed-income securities.
Other than hedge funds, private equity-like investments, and a portion of the real estate holdings, which are 
discussed above, we determine fair values based on a market approach using quoted market values, 
significant other observable inputs for identical or comparable assets or liabilities, or discounted cash flow 
analyses.
98

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2024 by 
asset category were as follows:
Defined Benefit Pension Plans
Public equity securities:
U.S.
$ 
1,905.6 $ 
602.4 $ 
0.3 $ 
— $ 
1,302.9 
International
 
1,517.3  
453.7  
336.7  
—  
726.9 
Fixed income:
Developed markets
 
2,343.2  
20.6  
2,161.9  
0.1  
160.6 
Developed markets - 
repurchase agreements
 
(641.0)  
—  
(641.0)  
—  
— 
Emerging markets
 
320.4  
21.0  
34.9  
—  
264.5 
Private alternative investments:
Hedge funds
 
3,057.6  
—  
—  
—  
3,057.6 
Equity-like funds
 
3,931.5  
—  
—  
9.4  
3,922.1 
Real estate
 
450.9  
301.0  
—  
—  
149.9 
Other
 
772.9  
10.2  
25.9  
—  
736.8 
Total
$ 
13,658.4 $ 
1,408.9 $ 
1,918.7 $ 
9.5 $ 
10,321.3 
Retiree Health Benefit Plans
Public equity securities:
U.S.
$ 
184.2 $ 
56.9 $ 
— $ 
— $ 
127.3 
International
 
103.7  
41.0  
—  
—  
62.7 
Fixed income:
Developed markets
 
63.0  
—  
63.0  
—  
— 
Emerging markets
 
26.0  
—  
—  
—  
26.0 
Private alternative investments:
Hedge funds
 
285.2  
—  
—  
—  
285.2 
Equity-like funds
 
346.1  
—  
—  
0.9  
345.2 
Cash value of trust owned 
insurance contract
 
1,464.9  
—  
1,464.9  
—  
— 
Real estate
 
28.4  
28.4  
—  
—  
— 
Other
 
64.3  
3.6  
(7.0)  
—  
67.7 
Total
$ 
2,565.8 $ 
129.9 $ 
1,520.9 $ 
0.9 $ 
914.1 
 
 
Fair Value Measurements Using
Asset Class
Total
Quoted Prices in 
Active 
Markets for
Identical Assets
(Level 1)
Significant
Observable 
Inputs
(Level 2)
Significant
Unobservable 
Inputs
(Level 3)
Investments 
Valued at Net 
Asset Value(1)
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been 
classified in the fair value hierarchy.
No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 
2024. The activity in the Level 3 investments during the year ended December 31, 2024 was not material.
99

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2023 by 
asset category were as follows:
Defined Benefit Pension Plans
Public equity securities:
U.S.
$ 
1,379.7 $ 
490.5 $ 
0.3 $ 
— $ 
888.9 
International
 
1,408.9  
441.2  
333.4  
—  
634.3 
Fixed income:
Developed markets
 
2,783.9  
21.2  
2,597.3  
0.1  
165.3 
Developed markets - 
repurchase agreements
 
(772.8)  
13.2  
(786.0)  
—  
— 
Emerging markets
 
295.6  
10.4  
35.7  
—  
249.5 
Private alternative investments:
Hedge funds
 
3,125.9  
—  
—  
—  
3,125.9 
Equity-like funds
 
4,093.7  
—  
—  
25.1  
4,068.6 
Real estate
 
369.7  
261.9  
—  
—  
107.8 
Other
 
1,024.1  
170.8  
42.6  
—  
810.7 
Total
$ 
13,708.7 $ 
1,409.2 $ 
2,223.3 $ 
25.2 $ 
10,051.0 
Retiree Health Benefit Plans
Public equity securities:
U.S.
$ 
127.0 $ 
44.2 $ 
— $ 
— $ 
82.8 
International
 
89.9  
38.2  
—  
—  
51.7 
Fixed income:
Developed markets
 
74.9  
—  
74.9  
—  
— 
Emerging markets
 
23.4  
—  
—  
—  
23.4 
Private alternative investments:
Hedge funds
 
281.2  
—  
—  
—  
281.2 
Equity-like funds
 
335.1  
—  
—  
2.4  
332.7 
Cash value of trust owned 
insurance contract
 
1,526.5  
—  
1,526.5  
—  
— 
Real estate
 
24.5  
24.5  
—  
—  
— 
Other
 
97.8  
23.2  
2.1  
—  
72.5 
Total
$ 
2,580.3 $ 
130.1 $ 
1,603.5 $ 
2.4 $ 
844.3 
 
 
Fair Value Measurements Using
Asset Class
Total
Quoted Prices in 
Active 
Markets for 
Identical Assets
(Level 1)
Significant 
Observable 
Inputs
(Level 2)
Significant 
Unobservable 
Inputs
(Level 3)
Investments 
Valued at Net 
Asset Value(1)
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been 
classified in the fair value hierarchy.
No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 
2023. The activity in the Level 3 investments during the year ended December 31, 2023 was not material.
In 2025, we expect to contribute approximately $30 million to our defined benefit pension plans to satisfy 
minimum funding requirements for the year. We do not currently expect to make material discretionary 
contributions in 2025.
100

Note 16: Contingencies
We are involved in various lawsuits, claims, government investigations and other legal proceedings that arise 
in the ordinary course of business. These claims or proceedings can involve various types of parties, including 
governments, regulatory agencies, competitors, customers, suppliers, service providers, licensees, 
employees, or shareholders, among others. These matters may involve patent infringement, antitrust, 
securities, pricing, access, sales and marketing practices, environmental, commercial, contractual rights, 
licensing obligations, health and safety matters, consumer fraud, employment matters, product liability, 
insurance coverage, and regulatory compliance, among others. The resolution of these matters often 
develops over a long period of time and expectations can change as a result of new findings, rulings, appeals 
or settlement arrangements. Legal proceedings that are significant or that we believe could become 
significant or material are described below. 
We are defending against the legal proceedings in which we are named as defendants vigorously. It is not 
possible to determine the final outcome of these matters, and, unless otherwise noted, we cannot reasonably 
estimate the maximum potential exposure or the range of possible loss in excess of amounts accrued for any 
of these matters; however, we believe that the resolution of all such matters will not have a material adverse 
effect on our consolidated financial position or liquidity, but could possibly be material to our consolidated 
results of operations in any one accounting period.
Litigation accruals and environmental liabilities and the related estimated insurance recoverables are reflected 
on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. With respect to 
the product liability claims currently asserted against us, we have accrued for our estimated exposures to the 
extent they are both probable and reasonably estimable based on the information available to us. We accrue 
for certain product liability claims incurred but not filed to the extent we can formulate a reasonable estimate 
of their costs. We estimate these expenses based primarily on historical claims experience and data 
regarding product usage. Legal defense costs expected to be incurred in connection with significant product 
liability loss contingencies are accrued when both probable and reasonably estimable.
Because of the nature of pharmaceutical products, it is possible that we could become subject to large 
numbers of additional product liability and related claims in the future. Due to a very restrictive market for 
litigation liability insurance, we are self-insured for litigation liability losses for all our currently and previously 
marketed products. 
Patent Matters
Emgality Patent Litigation
In September 2018, Teva Pharmaceuticals International GmbH and Teva Pharmaceuticals USA, Inc. 
(collectively, Teva) filed a complaint in the U.S. District Court for the District of Massachusetts alleging that 
Lilly's launch and continued sales of Emgality infringed various claims in three Teva patents. In November 
2022, following a trial, a jury returned a verdict in favor of Teva. In September 2023, the trial court overruled 
the jury verdict, found all asserted claims invalid, and entered judgment in Lilly's favor. In October 2023, Teva 
appealed to the U.S. Court of Appeals for the Federal Circuit. The appeal is pending.
Environmental Matters 
Superfund Matters
Under the Comprehensive Environmental Response, Compensation, and Liability Act, commonly known as 
"Superfund," we have been designated as one of several potentially responsible parties with respect to the 
cleanup of fewer than 10 sites. Under Superfund, each responsible party may be jointly and severally liable 
for the entire amount of the cleanup.
Brazil Litigation – Cosmopolis Facility
Labor Attorney Litigation
101

In March 2008, the state Labor Public Attorney (LPA) filed a public civil action against Eli Lilly do Brasil 
Limitada (Lilly Brasil) in the Labor Court of Paulinia, State of Sao Paulo, alleging harm to employees and 
former employees from alleged exposure to soil and groundwater contaminants at a former manufacturing 
facility in Cosmopolis, operated by the company between 1977 and 2003. In May 2014, the trial court ruled 
against Lilly Brasil, ordering it to undertake several remedial and compensatory actions, including health 
coverage for a class of individuals and certain of their children. The trial court's ruling included a liquidated 
award of 300 million Brazilian reais, which, when adjusted for inflation, is approximately 1.4 billion Brazilian 
reais (approximately $226 million as of December 31, 2024). In July 2018, the appeals court generally 
affirmed the trial court's ruling. Lilly Brasil has appealed to the superior labor court (TST).
In July 2019, at the LPA's request, the trial court ordered a freeze of Lilly Brasil's immovable property in the 
amount of 500 million Brazilian reais, which was reduced on Lilly Brasil's appeal and, when adjusted for 
inflation, is approximately 145 million Brazilian reais (approximately $23 million as of December 31, 2024). 
Both parties have appealed this order to the TST. 
The trial court is currently assessing the status of Lilly Brasil's compliance with the obligations as to the land, 
and an inspection in the industrial plant occurred in October 2023.
Former Employee Litigation
Various former employees have filed related claims against Lilly Brasil in the trial court. These lawsuits are at 
various stages in the litigation process.
Pricing Matters
340B Litigation and Investigations
In January 2021, we filed a lawsuit in the U.S. District Court for the Southern District of Indiana against the 
U.S. Department of Health and Human Services (HHS), the Secretary of HHS, the Health Resources and 
Services Administration (HRSA), and the Administrator of HRSA. The lawsuit challenges HHS's December 
2020 advisory opinion that the 340B program requires drug manufacturers to deliver discounts to all contract 
pharmacies, as well as HHS's December 2020 administrative dispute resolution (ADR) regulations. It seeks a 
declaratory judgment that the defendants violated the Administrative Procedure Act (APA) and the U.S. 
Constitution, a preliminary injunction enjoining implementation of the ADR process and application of the 
advisory opinion, and other related relief. In March 2021, the court preliminarily enjoined the government's 
use of the ADR process as to us. In May 2021, we amended the complaint to add claims related to a May 
2021 letter from HRSA asserting that Lilly's contract pharmacy policy violated the 340B statute. In October 
2021, the court granted in part and denied in part the parties' cross-motions for summary judgment. Both 
parties appealed to the U.S. Court of Appeals for the Seventh Circuit. The appeal remains pending.
We received a civil investigative subpoena in February 2021 from the Office of the Attorney General for the 
State of Vermont relating to the sale of pharmaceutical products to Vermont covered entities under the 340B 
program. We are cooperating with the subpoena. 
We have been named in various ADR petitions, filed in 2021, 2023, and 2024, seeking declaratory, injunctive, 
and/or monetary relief related to the 340B program. In light of the preliminary injunction order described 
above, these petitions are being held in abeyance as to us.
In July 2021, Mosaic Health, Inc. filed a putative class action lawsuit in the U.S. District Court for the Western 
District of New York against us, Sanofi-Aventis U.S., LLC (Sanofi), Novo Nordisk Inc. (Novo Nordisk), and 
AstraZeneca Pharmaceuticals LP (AstraZeneca), alleging antitrust and unjust enrichment claims related to the 
defendants' 340B programs. In October 2021, an amended complaint added Central Virginia Health Services, 
Inc. as a plaintiff. In September 2022, the court dismissed the amended complaint for failure to state a claim 
but allowed the plaintiffs to move for leave to file a second amended complaint. In January 2024, the court 
denied the plaintiffs' motion for leave to amend and dismissed the case. In February 2024, the plaintiffs 
appealed to the U.S. Court of Appeals for the Second Circuit. The appeal remains pending. 
We have multiple other challenges against HHS and related parties related to interpretations and actions 
under the 340B program.
102

Insulin Pricing Litigation
Since 2017, various plaintiffs, including consumers, states and state attorneys general, counties, 
municipalities, Native American tribes, school districts, wholesalers, third-party payers, and others, have filed 
lawsuits, including putative class actions, against us, other manufacturers, pharmacy benefit managers, and 
others, relating to the pricing of insulin medications, and in some cases other diabetes medications, and 
rebates paid by manufacturers to pharmacy benefit managers. The complaints in the various lawsuits assert a 
variety of claims, including among others consumer protection, unfair or deceptive trade practices, fraud, false 
advertising, unjust enrichment, civil conspiracy, racketeering, antitrust, and unfair competition claims. Most 
cases have been coordinated or consolidated for pretrial proceedings in a multidistrict litigation (MDL) 
pending in the U.S. District Court for the District of New Jersey. The lawsuits are at various stages in the 
litigation process.
In the first-filed case, a putative consumer class action, we and the plaintiffs reached a proposed settlement in 
May 2023. In January 2024, the court denied the plaintiffs' motion for class certification. We and the plaintiffs 
subsequently terminated our proposed settlement and stipulated that the court's ruling denying class 
certification applied to Lilly. The MDL court has issued various case management orders, including but not 
limited to orders establishing separate tracks for state attorney general claims (State AG Track), putative class 
actions (Class Action Track), and non-class suits by self-funded payers (Self-Funded Payer Track).
In January 2022, the Michigan attorney general filed a petition in Michigan state court seeking authorization to 
investigate Lilly for potential violations of the Michigan Consumer Protection Act (MCPA), along with a 
complaint seeking a declaratory judgment that the state has authority to investigate Lilly's sale of insulin under 
the MCPA. The court authorized the proposed investigation and the issuance of civil investigative subpoenas. 
In April 2022, however, the parties entered into a stipulation providing that the state will not issue any civil 
investigative subpoena to us under the MCPA until the declaratory judgment action is resolved, and in July 
2022, the court dismissed the case in its entirety. In June 2023, the Michigan Court of Appeals affirmed the 
judgment in our favor. In August 2023, the state filed an application for leave to appeal to the Michigan 
Supreme Court, and oral argument was held in October 2024. The state's request for leave to appeal remains 
pending.
Lilly has entered into settlement agreements with two states to resolve allegations relating to insulin pricing. In 
particular, in February 2024, after discovery, Lilly entered into a non-monetary settlement with the Minnesota 
attorney general's office that resolved a lawsuit filed by Minnesota in 2018; and Lilly entered into a similar 
non-monetary settlement with the New York attorney general’s office in May 2023. These agreements 
involved no monetary payments and no admission of wrongdoing or liability.
Insulin and Other Pricing Investigations
We have been subject to various investigations and received subpoenas, civil investigative demands, 
information requests, interrogatories, and other inquiries from various governmental entities related to pricing 
issues, including the pricing and sale of insulin medications, and in some instances certain other diabetes 
medications, and/or calculations of average manufacturer price and best price. These include subpoenas from 
the Vermont attorney general office, civil investigative demands from the U.S. Department of Justice, the U.S. 
Federal Trade Commission, and the Colorado, Indiana, Louisiana, Oregon, Texas, and Washington attorney 
general offices, as well as information requests from the California, Florida, Hawaii, Mississippi, New Mexico, 
Nevada, and Washington D.C. attorney general offices. 
To the extent the foregoing governmental entities have not filed lawsuits, we are cooperating with the various 
investigations, subpoenas, and inquiries.
Average Manufacturer Price Litigation
In November 2014, a relator filed a qui tam action in the U.S. District Court for the Northern District of Illinois 
against us and Takeda Pharmaceuticals America, Inc. The relator's complaint alleges that the defendants 
should have treated certain credits from distributors as retroactive price increases and included such 
increases in calculating average manufacturer prices. In August 2022, following a trial, the jury returned a 
verdict in favor of the relator. Lilly has appealed to the U.S. Court of Appeals for the Seventh Circuit, and the 
appeal remains pending.
103

Other Matters
Actos Litigation
We, along with Takeda Chemical Industries, Ltd. and Takeda affiliates (collectively, Takeda), are named in a 
third party payer class action in the U.S. District Court for the Central District of California. The plaintiffs allege 
that bladder cancer risk was concealed from them and claim that as a result they and a proposed class of 
third-party payers are entitled to recover money paid for Actos prescriptions. Our agreement with Takeda calls 
for Takeda to defend and indemnify us against losses and expenses with respect to U.S. litigation arising out 
of the manufacture, use, or sale of Actos and other related expenses in accordance with the terms of the 
agreement. In May 2023, the district court granted class certification. In August 2023, the U.S. Court of 
Appeals for the Ninth Circuit granted our and Takeda's petition for permission to appeal the class certification 
order. That appeal remains pending. 
Mounjaro and Trulicity Product Liability Litigation
Since August 2023, various plaintiffs have filed lawsuits against us, Novo Nordisk A/S (Novo), and other 
related Novo entities, alleging injuries following purported use of incretin medicines, including Mounjaro and 
Trulicity. The complaints assert a variety of claims and generally seek damages, medical monitoring, or other 
relief. Most of these lawsuits have been coordinated or consolidated for pretrial proceedings in a federal MDL 
pending in the U.S. District Court for the Eastern District of Pennsylvania; cases outside the MDL include one 
case pending in Georgia state court, as well as a class action petition in Israel. In November 2024, the MDL 
plaintiffs filed a master complaint.
Branchburg Manufacturing Facility
In May 2021, we received a subpoena from the U.S. Department of Justice requesting the production of 
certain documents relating to our manufacturing site in Branchburg, New Jersey. We are cooperating with the 
subpoena.
Puerto Rico Tax Matter
In May 2013, the Municipality of Carolina in Puerto Rico (Municipality) filed a lawsuit against us alleging 
noncompliance with respect to a contract with the Municipality and seeking a declaratory judgment. In June 
2019, the Court of First Instance (CFI) granted summary judgment in our favor, dismissing the Municipality's 
complaint in its entirety. In December 2020, the Puerto Rico Appellate Court (AP) reversed and remanded the 
case to the CFI for trial on the merits. After trial began in May 2022, the Municipality filed a motion requesting 
the CFI to execute an alleged judgment. The CFI denied the request, and the Municipality filed for revision at 
the AP, which we opposed, staying the case. The AP denied the Municipality's motion for revision. Trial 
resumed in October 2024. 
Health Choice Alliance 
In October 2019, a relator filed a qui tam lawsuit against us in Texas state court asserting claims under the 
Texas Medicaid Fraud Prevention Act based on allegations about certain patient support programs related to 
our products Humalog, Humulin, and Forteo. The lawsuit seeks to recover the value of payments by the Texas 
Medicaid Program for these products, as well as civil penalties and other relief. The action has been stayed 
since 2020.
Research Corporation Technologies, Inc.
In April 2016, Research Corporation Technologies, Inc. (RCT) filed a lawsuit against us in the U.S. District 
Court for the District of Arizona asserting damages claims for breach of contract, unjust enrichment, and 
conversion related to processes used to manufacture certain products, including Humalog and Humulin. In 
October 2021, the court issued a summary judgment decision in favor of RCT on certain issues, including with 
respect to a disputed royalty. In July 2024, we reached a confidential agreement with RCT that requires 
different payments based on various litigation outcomes as determined on appeal. The settlement agreement 
is not an admission of liability or fault, and is subject to conditions. Pursuant to the agreement, the court 
entered final judgment, Lilly filed a notice of appeal to the U.S. Court of Appeals for the Ninth Circuit, and Lilly 
made an initial payment under the agreement. Lilly's appeal remains pending. The remaining amount payable 
under the agreement, if any, should not have a material impact on our financial position, liquidity or results of 
operations.
104

Note 17: Other Comprehensive Income (Loss)
The following table summarizes the activity related to each component of other comprehensive income (loss):
(Amounts presented net of taxes)
Foreign 
Currency 
Translation 
Gains (Losses)
Net 
Unrealized 
Gains 
(Losses) 
on Available-
For-Sale 
Securities
Retirement 
Benefit 
Plans
Net 
Unrealized 
Gains 
(Losses) on 
Cash Flow 
Hedges
Accumulated 
Other 
Comprehensive 
Loss
Beginning balance at January 1, 2022
$ (1,550.2) $ 
3.7 $ (2,583.6) $ (213.0) $ 
(4,343.1) 
Other comprehensive income (loss) before 
reclassifications
 
(324.4)  
(52.2)  
291.5  
332.8  
247.7 
Net amount reclassified from accumulated 
other comprehensive loss
 
0.4  
11.4  
229.8  
9.2  
250.8 
Net other comprehensive income (loss)
 
(324.0)  
(40.8)  
521.3  
342.0  
498.5 
Balance at December 31, 2022
 
(1,874.2)  
(37.1)  (2,062.3)  
129.0  
(3,844.6) 
Other comprehensive income (loss) before 
reclassifications
 
78.9  
10.1  
(686.9)  
79.7  
(518.2) 
Net amount reclassified from accumulated 
other comprehensive loss
 
(23.7)  
0.8  
51.9  
6.8  
35.8 
Net other comprehensive income (loss)
 
55.2  
10.9  
(635.0)  
86.5  
(482.4) 
Balance at December 31, 2023
 
(1,819.0)  
(26.2)  (2,697.3)  
215.5  
(4,327.0) 
Other comprehensive income (loss) before 
reclassifications
 
(580.2)  
(5.0)  
424.6  
62.0  
(98.6) 
Net amount reclassified from accumulated 
other comprehensive loss
 
9.6  
(0.5)  
94.0  
0.6  
103.7 
Net other comprehensive income (loss)
 
(570.6)  
(5.5)  
518.6  
62.6  
5.1 
Ending balance at December 31, 2024
$ (2,389.6) $ 
(31.7) $ (2,178.7) $ 278.1 $ 
(4,321.9) 
The tax effects on the net activity related to each component of other comprehensive income (loss) for the 
years ended December 31, were as follows:
Tax benefit (expense)
2024
2023
2022
Foreign currency translation gains/losses
$ 
(146.4) $ 
81.0 $ 
(75.9) 
Net unrealized gains/losses on available-for-sale securities
 
1.6  
(3.2)  
12.4 
Retirement benefit plans
 
(133.2)  
141.5  
(95.6) 
Net unrealized gains/losses on cash flow hedges
 
(16.7)  
(23.0)  
(90.9) 
Benefit (expense) for income taxes related to other 
comprehensive income (loss)
$ 
(294.7) $ 
196.3 $ 
(250.0) 
Except for the tax effects of foreign currency translation gains and losses related to our foreign currency-
denominated notes, cross-currency interest rate swaps, and other foreign currency exchange contracts 
designated as net investment hedges (see Note 7), income taxes were not provided for foreign currency 
translation. Generally, the assets and liabilities of foreign operations are translated into U.S. dollars using the 
current exchange rate. For those operations, changes in exchange rates generally do not affect cash flows; 
therefore, resulting translation adjustments are made in shareholders' equity rather than in the consolidated 
statements of operations.
105

Reclassifications out of accumulated other comprehensive loss were as follows:
Affected Line Item in the Consolidated 
Statements of Operations
2024
2023
2022
Amortization of retirement 
benefit items:
Prior service benefits, net
$ 
(3.5) $ 
(50.5) $ 
(52.4) Other—net, (income) expense
Actuarial losses
 
122.5  
116.2  
343.3 
Other—net, (income) expense
Total before tax
 
119.0  
65.7  
290.9 
Tax benefit
 
(25.0)  
(13.8)  
(61.1) Income taxes
Net of tax
 
94.0  
51.9  
229.8 
Other, net of tax
 
9.7  
(16.1)  
21.0 
Other—net, (income) expense
Total reclassifications for the 
period, net of tax
$ 
103.7 $ 
35.8 $ 
250.8 
Note 18: Other–Net, (Income) Expense
Other–net, (income) expense consisted of the following:
2024
2023
2022
Interest expense
$ 
780.6 $ 
485.9 $ 
331.6 
Interest income
 
(175.2)  
(173.6)  
(62.8) 
Net investment losses on equity securities (Note 7)
 
49.5  
20.2  
410.7 
Retirement benefit plans
 
(461.7)  
(461.9)  
(372.9) 
Other (income) expense
 
25.4  
32.7  
14.3 
Other–net, (income) expense
$ 
218.6 $ 
(96.7) $ 
320.9 
Note 19: Segment Information
We operate as a single reportable segment engaged in the discovery, development, manufacturing, 
marketing, and sales of pharmaceutical products worldwide. A global research and development organization 
and a supply chain organization are responsible for the discovery, development, manufacturing, and supply of 
our products. Our commercial organizations market, distribute, and sell the products. The business is also 
supported by global corporate staff functions. Our determination that we operate as a single segment is 
consistent with the nature of our operations and the financial information regularly reviewed by the chief 
executive officer, in his capacity as the chief operating decision maker (CODM), for the purposes of evaluating 
performance, allocating resources, setting incentive compensation targets, and planning and forecasting for 
future periods.
Our purpose is to unite caring with discovery to create medicines that make life better for people around the 
world. Our long-term success is significantly dependent on our ability to research and develop innovative 
medicines. The CODM uses consolidated net income to assess performance of our company, ensuring that 
we are investing in future research and development while efficiently delivering products to patients. The 
CODM allocates research and development resources based upon several factors, including the likelihood of 
technical success, unmet medical needs, and the viability of commercial success. A significant component of 
the CODM’s decision-making process is to ensure a balanced investment in our research and development 
portfolio to drive near-term success and sustain for the long-term.
106

The following table summarizes our segment revenue, significant segment expenses, and segment profit:
2024
2023
2022
Revenue
$ 45,042.7 $ 34,124.1 $ 28,541.4 
Less:
Cost of sales
 
8,418.3  
7,082.2  
6,629.8 
Early-stage research and development(1)
 
3,916.9  
3,092.5  
2,406.6 
Late-stage research and development(1)
 
7,073.7  
6,220.9  
4,784.2 
Marketing, selling, and administrative
 
8,593.8  
7,403.1  
6,440.4 
Acquired in-process research and development
 
3,280.4  
3,799.8  
908.5 
Other segment items(2)
 
3,169.6  
1,285.2  
1,127.1 
Net income
$ 10,590.0 $ 
5,240.4 $ 
6,244.8 
(1) Early-stage research and development primarily includes costs incurred from discovery through Phase 2 clinical trials. Late-stage 
research and development primarily includes costs incurred from Phase 3 clinical trials.
(2) Other segment items primarily include income taxes and asset impairment, restructuring, and other special charges.
The following tables summarize additional segment information:
2024
2023
2022
Interest income
$ 
175.2 $ 
173.6 $ 
62.8 
Interest expense
 
780.6  
485.9  
331.6 
Depreciation and amortization
 
1,766.6  
1,527.3  
1,522.5 
Asset impairment, restructuring, and other special charges
 
860.6  
67.7  
244.6 
Earnings (loss) in equity method investments
 
89.8  
(10.1)  
(138.0) 
Income taxes
 
2,090.4  
1,314.2  
561.6 
Expenditures for long-lived assets(1)
 
5,560.8  
3,830.2  
2,289.2 
(1) Includes expenditures for property and equipment and computer software costs.
2024
2023
Total assets
$ 78,714.9 $ 64,006.3 
Equity method investments
 
1,142.7  
962.3 
107

Management's Reports
Management's Report for Financial Statements—Eli Lilly and Company and Subsidiaries
Management of Eli Lilly and Company and subsidiaries is responsible for the accuracy, integrity, and fair 
presentation of the financial statements. The statements have been prepared in accordance with generally 
accepted accounting principles in the United States and include amounts based on judgments and estimates 
by management. In management's opinion, the consolidated financial statements present fairly our financial 
position, results of operations, and cash flows.
In addition to the system of internal accounting controls, we maintain a code of conduct (known as "The Red 
Book") that applies to all employees worldwide, requiring proper overall business conduct, avoidance of 
conflicts of interest, compliance with laws, and confidentiality of proprietary information. All employees must 
take training annually on The Red Book and are required to report suspected violations. A hotline number is 
available on our lilly.com website and on the internal LillyNow website to enable reporting of suspected 
violations anonymously. Employees who report suspected violations are protected from discrimination or 
retaliation by the company. In addition to The Red Book, the chief executive officer and all financial 
management must sign a financial code of ethics, which further reinforces their ethical and fiduciary 
responsibilities.
The consolidated financial statements have been audited by Ernst & Young LLP, an independent registered 
public accounting firm (PCAOB ID: 42). Their responsibility is to examine our consolidated financial 
statements in accordance with generally accepted auditing standards of the Public Company Accounting 
Oversight Board (United States). Ernst & Young's opinion with respect to the fairness of the presentation of 
the statements is included in Item 8 of our Annual Report on Form 10-K. Ernst & Young reports directly to the 
audit committee of the board of directors.
Our audit committee includes four nonemployee members of the board of directors, all of whom are 
independent from our company. The committee charter, which is available on our website, outlines the 
members' roles and responsibilities. It is the audit committee's responsibility to appoint an independent 
registered public accounting firm subject to shareholder ratification, pre-approve both audit and non-audit 
services performed by the independent registered public accounting firm, and review the reports submitted by 
the firm. The audit committee meets several times during the year with management, the internal auditors, 
and the independent public accounting firm to discuss audit activities, internal controls, and financial reporting 
matters, including reviews of our externally published financial results. The internal auditors and the 
independent registered public accounting firm have full and free access to the committee.
We are dedicated to ensuring that we maintain the high standards of financial accounting and reporting that 
we have established. We are committed to providing financial information that is transparent, timely, complete, 
relevant, and accurate. Our culture demands integrity and an unyielding commitment to strong internal 
practices and policies. Finally, we have the highest confidence in our financial reporting, our underlying 
system of internal controls, and our people, who are objective in their responsibilities, operate under a code of 
conduct and are subject to the highest level of ethical standards.
Management's Report on Internal Control Over Financial Reporting—Eli Lilly and Company and 
Subsidiaries
Management of Eli Lilly and Company and subsidiaries is responsible for establishing and maintaining 
adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the 
Securities Exchange Act of 1934. We have global financial policies that govern critical areas, including internal 
controls, financial accounting and reporting, fiduciary accountability, and safeguarding of corporate assets. 
Our internal accounting control systems are designed to provide reasonable assurance that assets are 
safeguarded, that transactions are executed in accordance with management's authorization and are properly 
recorded, and that accounting records are adequate for preparation of financial statements and other financial 
information. A staff of internal auditors regularly monitors, on a worldwide basis, the adequacy and 
effectiveness of internal accounting controls. The general auditor reports directly to the audit committee of the 
board of directors.
We conducted an evaluation of the effectiveness of our internal control over financial reporting based on the 
framework in "Internal Control—Integrated Framework" (2013) issued by the Committee of Sponsoring 
Organizations of the Treadway Commission. 
108

Based on our evaluation under this framework, we concluded that our internal control over financial reporting 
was effective as of December 31, 2024. However, because of its inherent limitations, internal control over 
financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of 
effectiveness to future periods are subject to the risk that controls may become inadequate because of 
changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The effectiveness of internal control over financial reporting as of December 31, 2024 has been audited by 
Ernst & Young LLP, an independent registered public accounting firm, as stated in their attestation report, 
which appears herein. Their responsibility is to evaluate whether internal control over financial reporting was 
designed and operating effectively.
David Ricks
Lucas Montarce
Chair, President, and Chief Executive Officer
Executive Vice President and Chief Financial Officer
February 19, 2025 
109

Report of Independent Registered Public Accounting Firm 
To the Shareholders and the Board of Directors of Eli Lilly and Company
Opinion on the Financial Statements 
We have audited the accompanying consolidated balance sheets of Eli Lilly and Company and subsidiaries 
(the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, 
comprehensive income (loss), shareholders’ equity and cash flows for each of the three years in the period 
ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial 
statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the 
financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its 
cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. 
generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board 
(United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, 
based on criteria established in Internal Control—Integrated Framework issued by the Committee of 
Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 19, 
2025, expressed an unqualified opinion thereon.
Basis for Opinion 
These financial statements are the responsibility of the Company’s management. Our responsibility is to 
express an opinion on the Company’s financial statements based on our audits. We are a public accounting 
firm registered with the PCAOB and are required to be independent with respect to the Company in 
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and 
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we 
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 
material misstatement, whether due to error or fraud. Our audits included performing procedures to assess 
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing 
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence 
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the 
accounting principles used and significant estimates made by management, as well as evaluating the overall 
presentation of the financial statements. We believe that our audits provide a reasonable basis for our 
opinion.
Critical Audit Matter 
The critical audit matter communicated below is a matter arising from the current period audit of the financial 
statements that was communicated or required to be communicated to the audit committee and that: (1) 
relates to accounts or disclosures that are material to the financial statements and (2) involved our especially 
challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in 
any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by 
communicating the critical audit matter below, providing separate opinions on the critical audit matter or on 
the accounts or disclosures to which it relates.
110

Medicaid, Managed Care, and Medicare sales rebate accruals
Description of the 
Matter
As described in Note 2 to the consolidated financial statements under the caption “Net
Product Revenue,” the Company establishes provisions for sales rebate and discounts 
in the same period as the related sales occur. At December 31, 2024, the Company had
$11,539.3 million in sales rebate and discount accruals. A large portion of these accruals
are rebates associated with sales in the United States for which payment for purchase 
of the product is covered by Medicaid, Managed Care, and Medicare.
Auditing the Medicaid, Managed Care, and Medicare sales rebate and discount liabilities 
is challenging because of the subjectivity of certain assumptions required to estimate 
the rebate liabilities. In calculating the appropriate accrual amount, the Company 
considers historical Medicaid, Managed Care, and Medicare rebate payments by 
product as a percentage of their historical sales as well as any significant changes in 
sales trends, the lag in payment timing, changes in rebate contracts, an evaluation of 
the current Medicaid and Medicare laws and interpretations, the percentage of products 
that are sold via Medicaid, Managed Care, and Medicare, and product pricing. Given 
variability in prescription drug costs and variability in prescription data, historical rebate 
information may not be predictive for management to estimate the rebate accrual and 
thus, management supplements its historical data analysis with qualitative adjustments 
based upon current expectations, particularly for select products which contribute the 
largest portion of the Company's revenue.
How We 
Addressed the 
Matter in Our 
Audit
We tested the Company’s controls addressing the identified risks of material 
misstatement related to the valuation of the sales rebate and discount liabilities. This 
included testing controls over management’s review of the significant assumptions used 
to calculate the Medicaid, Managed Care, and Medicare rebate liabilities, including the 
significant assumptions discussed above. This testing also included management’s 
control to compare actual activity to estimated activity and controls to ensure the data 
used to evaluate the significant assumptions was complete and accurate.
Our audit procedures included, among others, evaluating for reasonableness the 
significant assumptions in light of economic trends, product profiles, and other 
regulatory factors. Our testing involved assessing the historical accuracy of 
management’s estimates by comparing actual activity to previous estimates and 
performing analytical procedures, based on internal and external data sources, to 
evaluate the completeness of the reserves. Additionally, our procedures included 
reviewing a sample of contracts, testing a sample of rebate payments and testing the 
underlying data used in management’s evaluation. For Medicaid, we involved our 
professionals with an understanding of the statutory reimbursement requirements to 
assess the consistency of the Company’s calculation methodologies with the applicable 
government regulations and policy.
/s/ Ernst & Young LLP
We have served as the Company's auditor since 1940. 
Indianapolis, Indiana
February 19, 2025 
111

Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Eli Lilly and Company
Opinion on Internal Control Over Financial Reporting
We have audited Eli Lilly and Company and subsidiaries’ internal control over financial reporting as of 
December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the 
Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). 
In our opinion, Eli Lilly and Company and subsidiaries (the Company) maintained, in all material respects, 
effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board 
(United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 
2023, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity 
and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and 
our report dated February 19, 2025, expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting 
and for its assessment of the effectiveness of internal control over financial reporting included in the 
accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to 
express an opinion on the Company’s internal control over financial reporting based on our audit. We are a 
public accounting firm registered with the PCAOB and are required to be independent with respect to the 
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the 
Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we 
plan and perform the audit to obtain reasonable assurance about whether effective internal control over 
financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk 
that a material weakness exists, testing and evaluating the design and operating effectiveness of internal 
control based on the assessed risk, and performing such other procedures as we considered necessary in the 
circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance 
regarding the reliability of financial reporting and the preparation of financial statements for external purposes 
in accordance with generally accepted accounting principles. A company’s internal control over financial 
reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in 
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; 
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of 
financial statements in accordance with generally accepted accounting principles, and that receipts and 
expenditures of the company are being made only in accordance with authorizations of management and 
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of 
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the 
financial statements.
112

Because of its inherent limitations, internal control over financial reporting may not prevent or detect 
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that 
controls may become inadequate because of changes in conditions, or that the degree of compliance with the 
policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Indianapolis, Indiana
February 19, 2025 
113

Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial 
Disclosure
None.
Item 9A.
Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Under applicable Securities and Exchange Commission (SEC) regulations, management of a reporting 
company, with the participation of the principal executive officer and principal financial officer, must 
periodically evaluate the company's "disclosure controls and procedures," which are defined generally as 
controls and other procedures designed to ensure that information required to be disclosed by the reporting 
company in its periodic reports filed with the SEC (such as this Form 10-K) is recorded, processed, 
summarized, and reported on a timely basis.
Our management, with the participation of David Ricks, president and chief executive officer, and Lucas 
Montarce, executive vice president and chief financial officer, evaluated our disclosure controls and 
procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 
1934) as of December 31, 2024, and concluded that they were effective.
Management's Report on Internal Control over Financial Reporting
Mr. Ricks and Mr. Montarce provided a report on behalf of management on our internal control over financial 
reporting, in which management concluded that the company's internal control over financial reporting is 
effective at December 31, 2024 based on the framework in "Internal Control—Integrated Framework" (2013) 
issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our internal control over 
financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting 
and the preparation of financial statements for external purposes in accordance with generally accepted 
accounting principles in the United States. Due to the inherent limitations, no evaluation over internal control 
can provide absolute assurance that no material misstatements or fraud exist. 
In addition, Ernst & Young LLP, the company's independent registered public accounting firm, issued an 
attestation report on the company's internal control over financial reporting as of December 31, 2024. 
See Item 8 for the full text of management's report and Ernst & Young's attestation report.
Changes in Internal Control over Financial Reporting
During the fourth quarter of 2024, there were no changes in our internal control over financial reporting that 
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 
Item 9B.
Other Information
On November 20, 2024, Donald Zakrowski, senior vice president, finance, and chief accounting officer, 
adopted a sales plan (Plan). The Plan was entered into during an open trading window and is intended to 
satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act of 1934 and our policies 
regarding trading in our securities. The Plan calls for the sale of up to 4,000 shares of company common 
stock between March 13, 2025 and November 19, 2025 subject to the terms and conditions of the Plan.
Item 9C.  
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
114

Part III
Item 10.
Directors, Executive Officers, and Corporate Governance
Directors and Executive Officers
Information relating to our board of directors is found in our Definitive Proxy Statement, to be dated on or 
about March 21, 2025 (Proxy Statement), under "Governance - How We Build an Effective Board" and is 
incorporated in this Annual Report on Form 10-K by reference.
Information relating to our insider trading procedure and processes is found in our Proxy Statement under 
"Ownership of Company Stock - Common Stock Ownership by Directors and Executive Officers" and is 
incorporated in this Annual Report on Form 10-K by reference.
Information relating to our executive officers is found at Item 1, "Business - Executive Officers of the 
Company" and is incorporated by reference herein. 
Code of Ethics
Information relating to our code of ethics is found in our Proxy Statement under "Governance - How We 
Operate an Effective Board - Governance Practices - Board Oversight - Key Areas of Oversight by the Board 
and Its Committees - Governance - Code of Ethics" and is incorporated in this Annual Report on Form 10-K 
by reference.
Corporate Governance
Information about the procedures by which shareholders can recommend nominees to our board of directors 
is found in our Proxy Statement under "Governance - How We Build an Effective Board - Director 
Nominations - Shareholder Director Candidates" and is incorporated in this Annual Report on Form 10-K by 
reference.
The board of directors has appointed an audit committee consisting entirely of independent directors in 
accordance with applicable Securities and Exchange Commission and New York Stock Exchange 
requirements for audit committees. Information about our audit committee is found in our Proxy Statement 
under "Governance - How We Operate an Effective Board - Board Structure - Meetings of the Board and Its 
Committees - Committees of the Board - Audit Committee" and is incorporated in this Annual Report on Form 
10-K by reference.
Section 16(a) Reporting Compliance
Information about our compliance with Section 16(a) is found in our Proxy Statement under "Ownership of 
Company Stock - Delinquent Section 16(a) Reports" and is incorporated in this Annual Report on Form 10-K 
by reference.
Item 11.
Executive Compensation
Information on director compensation, executive compensation, and talent and compensation committee 
matters can be found in the Proxy Statement under "Governance - How We Build an Effective Board - 
Director Compensation," "- How We Operate an Effective Board - Board Structure - Meetings of the Board 
and Its Committees - Committees of the Board - Talent and Compensation Committee," "Compensation - 
Compensation Discussion and Analysis," "- Talent and Compensation Committee Matters," and "- Executive 
Compensation." Such information is incorporated in this Annual Report on Form 10-K by reference. 
115

Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related 
Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management
Information relating to ownership of the company's common stock by management and by persons known by 
the company to be the beneficial owners of more than five percent of the outstanding shares of common stock 
is found in the Proxy Statement under "Ownership of Company Stock" and incorporated in this Annual Report 
on Form 10-K by reference.
Securities Authorized for Issuance Under Equity Compensation Plans
The following table presents information as of December 31, 2024 regarding the company's compensation 
plans under which shares of the company's common stock have been authorized for issuance.
Plan category
(a) Number of 
securities to be 
issued upon 
exercise of 
outstanding 
options, warrants, 
and rights (1)
(b) Weighted-
average exercise 
price of 
outstanding 
options, warrants, 
and rights
(c) Number of securities 
remaining available for 
future issuance under 
equity compensation plans 
(excluding securities 
reflected in column (a))
Equity compensation plans approved by 
security holders
 
— $ 
— 
48,827,102
Equity compensation plan not approved by 
security holders
 
—  
— 
 
— 
Total
 
—  
— 
 
48,827,102 
(1) 2,396,006 shares are underlying outstanding equity awards.
Item 13.
Certain Relationships and Related Transactions, and Director Independence
Related Person Transactions
Information relating to the policies and procedures for approval of related person transactions by our board of 
directors can be found in the Proxy Statement under "Governance - How We Operate an Effective Board - 
Board Alignment - Conflicts of Interest and Transactions with Related Persons." Such information is 
incorporated in this Annual Report on Form 10-K by reference.
Director Independence
Information relating to director independence can be found in the Proxy Statement under "Governance - How 
We Build an Effective Board - Director Qualifications - Independence" and is incorporated in this Annual 
Report on Form 10-K by reference.
Item 14.
Principal Accountant Fees and Services
Information related to the fees and services of our principal independent accountants, Ernst & Young LLP, can 
be found in the Proxy Statement under "Audit Matters - Item 3. Ratification of the Appointment of the 
Independent Auditor - Services Performed by the Independent Auditor" and "- Independent Auditor Fees." 
Such information is incorporated in this Annual Report on Form 10-K by reference.
116

Item 15.
Exhibits and Financial Statement Schedules
(a)1.    Financial Statements
The following consolidated financial statements of the company and its subsidiaries are found at Item 8:
•
Consolidated Statements of Operations—Years Ended December 31, 2024, 2023, and 2022 
•
Consolidated Statements of Comprehensive Income—Years Ended December 31, 2024, 2023, and 
2022
•
Consolidated Balance Sheets—December 31, 2024 and 2023
•
Consolidated Statements of Shareholders' Equity—Years Ended December 31, 2024, 2023, and 2022
•
Consolidated Statements of Cash Flows—Years Ended December 31, 2024, 2023, and 2022
•
Notes to Consolidated Financial Statements
(a)2.    Financial Statement Schedules
The consolidated financial statement schedules of the company and its subsidiaries have been omitted 
because they are not required, are inapplicable, or are adequately explained in the financial statements.
Financial statements of interests of 50 percent or less, which are accounted for by the equity method, have 
been omitted because they do not, considered in the aggregate as a single subsidiary, constitute a significant 
subsidiary.
(a)3.    Exhibits
The following documents are filed as part of this Annual Report on Form 10-K:
Exhibit
Description
3.1
Amended Articles of Incorporation, incorporated by reference to Exhibit 3.1 to the 
Company's Current Report on Form 8-K filed on May 4, 2022
3.2
Bylaws, as amended, incorporated by reference to Exhibit 3.2 to the Company's Current 
Report on Form 8-K filed on May 4, 2022
4.1
Indenture, dated February 1, 1991, between the Company and Deutsche Bank Trust 
Company Americas, as successor trustee to Citibank, N.A., as Trustee, incorporated by 
reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3, Registration 
No. 333-186979
4.2
Tripartite Agreement, dated September 13, 2007, appointing Deutsche Bank Trust Company 
Americas as Successor Trustee under the Indenture listed in Exhibit 4.1, incorporated by 
reference to Exhibit 4.2 to the Company's Annual Report on Form 10-K for the year ended 
December 31, 2008
4.3
Description of the Company's Common Stock, incorporated by reference to Exhibit 4.3 to 
the Company’s Annual Report on Form 10-K for the year ended December 31, 2023
4.4
Description of the Company's 1.625% Notes due 2026 and 2.125% Notes due 2030, 
incorporated by reference to Exhibit 4.4 to the Company's Annual Report on Form 10-K for 
the year ended December 31, 2019
4.5
Description of the Company's 6.77% Notes due 2036, incorporated by reference to Exhibit 
4.5 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019
4.6
Description of the Company's 7 1/8% Notes due 2025, incorporated by reference to Exhibit 
4.6 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019
4.7
Description of the Company's 0.625% Notes due 2031 and 1.700% Notes due 2049, 
incorporated by reference to Exhibit 4.7 to the Company's Annual Report on Form 10-K for 
the year ended December 31, 2019
4.8
Description of the Company's 0.500% Notes due 2033, 1.125% Notes due 2051, and 
1.375% Notes due 2061, incorporated by reference to Exhibit 4.8 to the Company's Annual 
Report on Form 10-K for the year ended December 31, 2021
117

4.9
Description of the Company's 1.625% Notes due 2043, incorporated by reference to Exhibit 
4.9 to the Company's Annual Report on Form 10-K for the year ended December 31, 2021
10.1
Amended and Restated 2002 Lilly Stock Plan(1), incorporated by reference to Exhibit 10.1 
to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024
10.2
Form of Performance Award under the 2002 Lilly Stock Plan(1) incorporated by reference to 
Exhibit 10.2 to the Company's Annual Report on Form 10-K for the year ended December 
31, 2022
10.3
Form of Shareholder Value Award under the 2002 Lilly Stock Plan(1)*
10.4
Form of Relative Value Award under the 2002 Lilly Stock Plan(1)*
10.5
Form of Restricted Stock Unit Award under the 2002 Lilly Stock Plan(1)*
10.6
Form of Non-Compete Payment Agreement(1), incorporated by reference to Exhibit 10.5 to 
the Company's Annual Report on Form 10-K for the year ended December 31, 2022
10.7
The Lilly Deferred Compensation Plan, as amended(1)*
10.8
The Lilly Directors' Deferral Plan, as amended(1)*
10.9
The Eli Lilly and Company Bonus Plan, as amended(1), incorporated by reference to Exhibit 
10.14 to the Company's Annual Report on Form 10-K for the year ended December 31, 
2020
10.10
2007 Change in Control Severance Pay Plan for Select Employees, as amended(1), 
incorporated by reference to Exhibit 10.10 to the Company’s Annual Report on Form 10-K 
for the year ended December 31, 2023
19
Trading Lilly Securities Global Procedure*
21
List of Subsidiaries*
23
Consent of Independent Registered Public Accounting Firm*
31.1
Rule 13a-14(a) Certification of David Ricks, Chair, President, and Chief Executive Officer*
31.2
Rule 13a-14(a) Certification of Lucas Montarce, Executive Vice President and Chief 
Financial Officer*
32
Section 1350 Certification*
97
Executive Compensation Recovery Policy, incorporated by reference to Exhibit 97 to the 
Company’s Annual Report on Form 10-K for the year ended December 31, 2023
101
Interactive Data File*
104
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)*
(1) Indicates management contract or compensatory plan.
* Filed herewith.
Long-term debt instruments under which the total amount of securities authorized does not exceed 10 percent of our consolidated assets 
are not filed as exhibits to this Annual Report. We will furnish a copy of these agreements to the Securities and Exchange Commission 
upon request.
Item 16.
Form 10-K Summary
Not applicable.
118

Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant 
has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Eli Lilly and Company
By  /s/    David Ricks
David Ricks
Chair, President, and Chief Executive Officer
February 19, 2025 
119

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on 
February 19, 2025 by the following persons on behalf of the Registrant and in the capacities indicated.
Signature
Title
/s/    David Ricks
Chair, President, and Chief Executive Officer 
(principal executive officer)
DAVID RICKS
/s/    Lucas Montarce
Executive Vice President and Chief Financial 
Officer (principal financial officer)
LUCAS MONTARCE
/s/    Donald Zakrowski
Senior Vice President, Finance, and Chief 
Accounting Officer (principal accounting officer)
DONALD ZAKROWSKI
/s/    Ralph Alvarez
Director
RALPH ALVAREZ
/s/    Katherine Baicker, Ph.D.
Director
KATHERINE BAICKER, Ph.D.
/s/    Erik Fyrwald
Director
ERIK FYRWALD
/s/    Mary Lynne Hedley, Ph.D.
Director
MARY LYNNE HEDLEY, Ph. D.
/s/    Jamere Jackson
Director
JAMERE JACKSON
/s/    Kimberly Johnson
Director
KIMBERLY JOHNSON
/s/    William Kaelin, Jr., M.D.
Director
WILLIAM KAELIN, JR., M.D.
/s/    Juan Luciano
Director
JUAN LUCIANO
/s/    Jon Moeller
Director
JON MOELLER
/s/    Gabrielle Sulzberger
Director
GABRIELLE SULZBERGER
120


BR532457-0325-10K