Eli Lilly and Company (Lilly) reported total revenue of $5.48bn for the first quarter ended March 31, 2010, an increase of per cent, compared to $5.04bn for the comparable period in 2009. It posted a net income of $1.25bn, or $1.13 per diluted share, a decrease of 5 per cent, compared to $1.31bn, or $1.20 per diluted share, for the same period last year.
In total, first quarter 2010 earnings were reduced by $.12 per share due to the impact of US health care reform, comprised of both the approximate $60m in higher rebates ($.04 per share) and the one-time tax charge of $85.1m ($.08 per share). Eli Lilly estimates that US health care reform will lower earnings by approximately $0.35 per share in 2010. "Lilly delivered strong operational performance in the first quarter, even as we experienced continued weakness in the US dollar versus prior periods and began to account for the impact from recently-enacted US health care reform," said John Lechleiter, chairman and CEO of Eli Lilly. "We expect that the new US health care reform legislation, while not perfect, will help seniors in the Medicare system better afford their prescriptions and will provide greater access to our medicines for millions of Americans who are currently uninsured."