Indiana (State or Other Jurisdiction of Incorporation) Lilly Corporate Center Indianapolis, Indiana (Address of Principal Executive Offices) | 001-06351 (Commission File Number) | 35-0470950 (I.R.S. Employer Identification No.) 46285 (Zip Code) |
No Change |
Exhibit Number | Exhibit |
99.1 | Press release dated July 26, 2016, together with related attachments. |
July 26, 2016 | Eli Lilly and Company | |
Lilly Corporate Center | ||
Indianapolis, Indiana 46285 | ||
U.S.A. | ||
+1.317.276.2000 | ||
www.lilly.com |
• | Revenue increased 9 percent, driven by 10 percent pharmaceutical volume growth coming primarily from recent product launches. |
• | Second-quarter 2016 earnings per share (EPS) were $0.71 (reported), or $0.86 (non-GAAP). |
• | The company confirms 2016 EPS to be in the range of $2.68 to $2.78 (reported) and $3.50 to $3.60 (non-GAAP). |
• | The company provides updated financial expectations through the remainder of the decade, including at least 5 percent average annual revenue growth driven by volume, along with an increase in gross margin as a percent of revenue, both on a constant currency basis. The company also plans to return to annual dividend increases for shareholders and reaffirmed its commitment to achieve an OPEX-to-revenue ratio of 50 percent or less in 2018. |
• | Significant pipeline progress continued with regulatory approval of Taltz in Japan, priority review granted for olaratumab in the U.S., a positive FDA Advisory Committee vote on Jardiance and an encouraging Phase 2 data read-out for abemaciclib. |
$ in millions, except per share data | Second Quarter | % | |||||||
2016 | 2015 | Change | |||||||
Revenue – Reported | $ | 5,404.8 | $ | 4,978.7 | 9 | % | |||
Net Income – Reported | 747.7 | 600.8 | 24 | % | |||||
EPS – Reported | 0.71 | 0.56 | 27 | % | |||||
Net Income – non-GAAP | 908.8 | 954.8 | (5 | )% | |||||
EPS – non-GAAP | 0.86 | 0.90 | (4 | )% |
• | The company is launching Taltz® in Europe for the treatment of moderate-to-severe plaque psoriasis in adults who are candidates for systemic therapy. |
• | Elanco Animal Health launched InteprityTM, a first-in-class, animal-use only, in-feed antibiotic |
2 |
• | The U.S. Food and Drug Administration (FDA) approved once-daily Jentadueto® XR (linagliptin and metformin hydrochloride extended-release) tablets as an adjunct to diet and exercise for the treatment of type 2 diabetes in adults. Jentadueto XR is part of the company’s alliance with Boehringer Ingelheim. |
• | The company received approval of Cyramza® in Japan for the treatment of: |
◦ | unresectable, advanced or recurrent colorectal cancer; and |
◦ | unresectable, advanced or recurrent non-small cell lung cancer for patients who have received prior platinum therapy. |
• | The company received approval of Taltz in Japan for the treatment of patients with plaque psoriasis, psoriatic arthritis, pustular psoriasis and erythrodermic psoriasis after insufficient response to existing treatments. |
• | The FDA granted Priority Review for olaratumab in combination with doxorubicin, for the potential treatment of people with advanced soft tissue sarcoma not amenable to curative treatment with radiotherapy or surgery. |
• | An FDA Advisory Committee voted 12-11 that substantial evidence exists to establish that Jardiance® (empagliflozin) reduces cardiovascular (CV) death in adults with type 2 diabetes and established CV disease. Jardiance is marketed by Boehringer Ingelheim and Lilly. |
• | The FDA determined that the company met the requirements for pediatric exclusivity for Effient®. Based on this decision by the FDA, Lilly has gained an additional six months of U.S. market exclusivity for Effient. |
• | The company announced results from the Phase 2 study of abemaciclib, a cyclin-dependent kinase CDK 4 and CDK 6 inhibitor, in patients with hormone-receptor-positive, human epidermal growth factor receptor 2-negative metastatic breast cancer. The data showed single-agent activity in metastatic breast cancer patients for whom endocrine therapy was no longer a suitable treatment option. |
3 |
• | The company and Incyte Corporation announced data from a pivotal long-term extension study, which demonstrated baricitinib was superior to placebo at inhibiting progressive radiographic joint damage in patients with rheumatoid arthritis. |
• | The company and Boehringer Ingelheim announced clinical results on two jointly marketed medicines: |
◦ | Results from a clinical trial demonstrated that Trajenta® (linagliptin) reduced blood sugar in adults with type 2 diabetes who are at risk for kidney impairment, with a renal safety profile similar to that seen in other trials. |
◦ | New data showed Jardiance reduced the risk for new-onset or worsening kidney disease by 39 percent versus placebo when added to standard of care in adults with type 2 diabetes with established cardiovascular disease. |
• | The German Federal Supreme Court granted the appeal by the company in the case of Lilly v. Actavis, vacating the prior decision denying infringement. The German Supreme Court returned the case to the Court of Appeal (Dusseldorf) to reconsider infringement based on its judgment. The case concerns whether Lilly’s vitamin regimen patent for Alimta® (pemetrexed disodium) would be infringed by a generic competitor that had stated an intention to market a dipotassium salt form of pemetrexed in Germany. |
• | Elanco Animal Health and EnBiotix, Inc. announced a collaboration to explore the application of EnBiotix’s engineered phage technology in specific animal health targets, which could result in alternatives for traditional antibiotics in animals. |
4 |
5 |
6 |
7 |
Second Quarter | ||||||||
2016 | 2015 | % Change | ||||||
Earnings per share (reported) | $ | 0.71 | $ | 0.56 | 27% | |||
Amortization of intangible assets | .11 | .10 | ||||||
Asset impairment, restructuring and other special charges | .04 | .05 | ||||||
Acquired in-process research and development | — | .05 | ||||||
Net charge related to repurchase of debt | — | .09 | ||||||
Novartis Animal Health inventory step-up | — | .05 | ||||||
Earnings per share (non-GAAP) | $ | 0.86 | $ | 0.90 | (4)% | |||
Numbers may not add due to rounding. |
8 |
Year-to-Date | ||||||||
2016 | 2015 | % Change | ||||||
Earnings per share (reported) | $ | 1.12 | $ | 1.06 | 6% | |||
Amortization of intangible assets | .22 | .20 | ||||||
Asset impairment, restructuring and other special charges | .16 | .12 | ||||||
Acquired in-process research and development | — | .20 | ||||||
Venezuela charge | .19 | — | ||||||
Net charge related to repurchase of debt | — | .09 | ||||||
Novartis Animal Health inventory step-up | — | .09 | ||||||
Earnings per share (non-GAAP) | $ | 1.69 | $ | 1.76 | (4)% | |||
Numbers may not add due to rounding. |
9 |
(Dollars in millions) | Second Quarter | Year-to-Date | ||||||||||||||||||
Established Pharmaceutical Products | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||
Humalog | $ | 701.9 | $ | 654.3 | 7% | $ | 1,308.2 | $ | 1,338.2 | (2)% | ||||||||||
Cialis | 630.5 | 567.9 | 11% | 1,207.2 | 1,106.2 | 9% | ||||||||||||||
Alimta | 607.1 | 664.3 | (9)% | 1,171.3 | 1,237.4 | (5)% | ||||||||||||||
Humulin® | 332.3 | 316.4 | 5% | 688.7 | 632.1 | 9% | ||||||||||||||
Forteo | 367.6 | 328.4 | 12% | 686.3 | 621.4 | 10% | ||||||||||||||
Cymbalta | 236.5 | 274.1 | (14)% | 435.2 | 561.1 | (22)% | ||||||||||||||
Zyprexa® | 210.7 | 253.7 | (17)% | 423.4 | 473.2 | (11)% | ||||||||||||||
Strattera® | 224.6 | 191.8 | 17% | 412.7 | 365.5 | 13% | ||||||||||||||
Erbitux | 180.6 | 134.6 | 34% | 348.6 | 222.8 | 56% | ||||||||||||||
Effient | 135.1 | 128.8 | 5% | 266.6 | 250.6 | 6% | ||||||||||||||
New Pharmaceutical Products | ||||||||||||||||||||
Trulicity | 201.3 | 44.3 | NM | 344.9 | 62.6 | NM | ||||||||||||||
Cyramza | 147.0 | 87.7 | 68% | 278.0 | 155.2 | 79% | ||||||||||||||
Jardiance(a) | 40.1 | 11.1 | NM | 78.3 | 30.3 | NM | ||||||||||||||
Basaglar® | 16.3 | — | NM | 27.2 | — | NM | ||||||||||||||
Taltz | 19.3 | — | NM | 19.3 | — | NM | ||||||||||||||
Portrazza® | 4.0 | — | NM | 5.7 | — | NM | ||||||||||||||
Animal Health | 859.8 | 840.8 | 2% | 1,614.4 | 1,590.5 | 1% | ||||||||||||||
Total Revenue | 5,404.8 | 4,978.7 | 9% | 10,269.9 | 9,623.4 | 7% | ||||||||||||||
(a) Jardiance includes Glyxambi® and Synjardy® NM – not meaningful |
10 |
11 |
12 |
13 |
2016 Expectations | ||
Earnings per share (reported) | $2.68 to $2.78 | |
Amortization of intangible assets | .42 | |
Asset impairment, restructuring and other special charges, including Novartis Animal Health integration costs and closure of an animal health manufacturing facility in Ireland | .21 | |
Venezuela charge | .19 | |
Earnings per share (non-GAAP) | $3.50 to $3.60 | |
Numbers may not add due to rounding. |
14 |
2016 Guidance | |
Revenue | $20.6 to $21.1 billion |
Gross Margin % of Revenue (reported) | Approx. 73% |
Gross Margin % of Revenue (non-GAAP) | Approx. 76% |
Marketing, Selling & Administrative | $6.1 to $6.3 billion |
Research & Development | $4.9 to $5.1 billion |
Other Income/(Expense) (reported) | $(200 million) to $(125 million) |
Other Income/(Expense) (non-GAAP) | $0 to $75 million |
Tax Rate | Approx. 21.0% |
Earnings per share (reported) | $2.68 to $2.78 |
Earnings per share (non-GAAP) | $3.50 to $3.60 |
Capital Expenditures | Approx. $1.1 billion |
Non-GAAP adjustments are consistent with the earnings per share table above. |
15 |
16 |
17 |
Eli Lilly and Company |
Operating Results (Unaudited) – REPORTED |
(Dollars in millions, except per share data) |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2016 | 2015 | % Chg. | 2016 | 2015 | % Chg. | ||||||||||||||
Revenue | $ | 5,404.8 | $ | 4,978.7 | 9% | $ | 10,269.9 | $ | 9,623.4 | 7% | |||||||||
Cost of sales | 1,465.0 | 1,218.4 | 20% | 2,788.0 | 2,411.1 | 16% | |||||||||||||
Research and development | 1,335.9 | 1,169.5 | 14% | 2,556.9 | 2,208.8 | 16% | |||||||||||||
Marketing, selling and administrative | 1,622.6 | 1,635.4 | (1)% | 3,096.5 | 3,158.9 | (2)% | |||||||||||||
Acquired in-process research and development | — | 80.0 | (100)% | — | 336.0 | (100)% | |||||||||||||
Asset impairment, restructuring and other special charges | 58.0 | 72.4 | (20)% | 189.4 | 180.4 | 5% | |||||||||||||
Operating income | 923.3 | 803.0 | 15% | 1,639.1 | 1,328.2 | 23% | |||||||||||||
Net interest income (expense) | (19.7 | ) | (16.2 | ) | (38.9 | ) | (35.7 | ) | |||||||||||
Net other income (expense) | 40.9 | (107.1 | ) | (88.9 | ) | 5.1 | |||||||||||||
Other income (expense) | 21.2 | (123.3 | ) | NM | (127.8 | ) | (30.6 | ) | NM | ||||||||||
Income before income taxes | 944.5 | 679.7 | 39% | 1,511.3 | 1,297.6 | 16% | |||||||||||||
Income taxes | 196.8 | 78.9 | NM | 323.5 | 167.3 | 93% | |||||||||||||
Net income | $ | 747.7 | $ | 600.8 | 24% | $ | 1,187.8 | $ | 1,130.3 | 5% | |||||||||
Earnings per share – diluted | $ | 0.71 | $ | 0.56 | 27% | $ | 1.12 | $ | 1.06 | 6% | |||||||||
Dividends paid per share | $ | 0.51 | $ | 0.50 | 2% | $ | 1.02 | $ | 1.00 | 2% | |||||||||
Weighted-average shares outstanding (thousands) – diluted | 1,060,083 | 1,065,584 | 1,061,023 | 1,066,335 |
18 |
Eli Lilly and Company | ||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)(a) | ||||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | |||||||||||||||||
GAAP Reported | Adjustments(c) | Non-GAAP Adjusted | GAAP Reported | Adjustments(d) | Non-GAAP Adjusted | |||||||||||||
Revenue | $ | 5,404.8 | $ | — | $ | 5,404.8 | $ | 4,978.7 | $ | — | $ | 4,978.7 | ||||||
Cost of sales | 1,465.0 | (166.6 | ) | 1,298.4 | 1,218.4 | (184.5 | ) | 1,033.9 | ||||||||||
Operating expenses(b) | 2,958.5 | (2.0 | ) | 2,956.5 | 2,804.9 | (35.8 | ) | 2,769.1 | ||||||||||
Acquired in-process research and development | — | — | — | 80.0 | (80.0 | ) | — | |||||||||||
Asset impairment, restructuring and other special charges | 58.0 | (58.0 | ) | — | 72.4 | (72.4 | ) | — | ||||||||||
Other income (expense) | 21.2 | — | 21.2 | (123.3 | ) | 152.7 | 29.4 | |||||||||||
Income taxes | 196.8 | 65.6 | 262.3 | 78.9 | 171.3 | 250.3 | ||||||||||||
Net income | $ | 747.7 | $ | 161.1 | $ | 908.8 | $ | 600.8 | $ | 354.1 | $ | 954.8 | ||||||
Earnings per share – diluted | $ | 0.71 | $ | 0.15 | $ | 0.86 | $ | 0.56 | $ | 0.33 | $ | 0.90 |
(a) | The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The company’s non-GAAP measures adjust reported results to exclude amortization of intangibles and items that are typically highly variable, difficult to predict, and/or of a size that could have a substantial impact on the company’s reported operations for a period. The company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the company’s ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. Investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. |
19 |
(b) | Operating expenses include research and development and marketing, selling and administrative expenses. |
(c) | Adjustments to certain GAAP reported measures for the three months ended June 30, 2016, include the following: |
(Dollars in millions, except per share data) | Amortization(i) | Other specified items(ii) | Total Adjustments | ||||||
Revenue | $ | — | $ | — | $ | — | |||
Cost of sales | (166.6 | ) | — | (166.6 | ) | ||||
Operating expenses | (2.0 | ) | — | (2.0 | ) | ||||
Acquired in-process research and development | — | — | — | ||||||
Asset impairment, restructuring and other special charges | — | (58.0 | ) | (58.0 | ) | ||||
Other income (expense) | — | — | — | ||||||
Income taxes | 52.7 | 12.8 | 65.6 | ||||||
Net income | $ | 115.8 | $ | 45.2 | $ | 161.1 | |||
Earnings per share – diluted | $ | 0.11 | $ | 0.04 | $ | 0.15 |
i. | Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties. |
ii. | Exclude charges primarily associated with integration and severance costs for Novartis Animal Health. |
20 |
(d) | Adjustments to certain GAAP reported measures for the three months ended June 30, 2015, include the following: |
(Dollars in millions, except per share data) | Amortization(i) | IPR&D(ii) | Inventory step-up(iii) | Repurchase of debt(iv) | Other specified items(v) | Total Adjustments | ||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Cost of sales | (116.1 | ) | — | (68.4 | ) | — | — | (184.5 | ) | |||||||||
Operating expenses | (35.8 | ) | — | — | — | — | (35.8 | ) | ||||||||||
Acquired in-process research and development | — | (80.0 | ) | — | — | — | (80.0 | ) | ||||||||||
Asset impairment, restructuring and other special charges | — | — | — | — | (72.4 | ) | (72.4 | ) | ||||||||||
Other income (expense) | — | — | — | 152.7 | — | 152.7 | ||||||||||||
Income taxes | 49.5 | 28.0 | 19.5 | 53.5 | 20.8 | 171.3 | ||||||||||||
Net income | $ | 102.4 | $ | 52.0 | $ | 48.9 | $ | 99.3 | $ | 51.6 | $ | 354.1 | ||||||
Earnings per share – diluted | $ | 0.10 | $ | 0.05 | $ | 0.05 | $ | 0.09 | $ | 0.05 | $ | 0.33 |
i. | Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties. |
ii. | Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These costs included a $50.0 million payment to Hanmi related to an exclusive license and collaboration agreement for Hanmi’s oral BTK inhibitor for the treatment of autoimmune and other diseases and a $30.0 million payment to BioNTech AG related to a research collaboration to discover novel cancer immunotherapies. |
iii. | Exclude inventory step-up costs associated with the acquisition of Novartis Animal Health. |
iv. | Exclude a net charge associated with the repurchase of $1.65 billion of debt. |
v. | Exclude costs associated with restructuring to reduce the company’s cost structure, asset impairments, and integration costs associated with the acquisition of Novartis Animal Health. |
21 |
Eli Lilly and Company | ||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)(a) | ||||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | |||||||||||||||||
GAAP Reported | Adjustments(c) | Non-GAAP Adjusted | GAAP Reported | Adjustments(d) | Non-GAAP Adjusted | |||||||||||||
Total revenue | $ | 10,269.9 | $ | — | $ | 10,269.9 | $ | 9,623.4 | $ | — | $ | 9,623.4 | ||||||
Cost of sales | 2,788.0 | (337.2 | ) | 2,450.8 | 2,411.1 | (364.9 | ) | 2,046.2 | ||||||||||
Operating expenses(b) | 5,653.4 | (3.9 | ) | 5,649.5 | 5,367.7 | (71.6 | ) | 5,296.1 | ||||||||||
Acquired in-process research and development | — | — | — | 336.0 | (336.0 | ) | — | |||||||||||
Asset impairment, restructuring and other special charges | 189.4 | (189.4 | ) | — | 180.4 | (180.4 | ) | — | ||||||||||
Other income (expense) | (127.8 | ) | 203.9 | 76.1 | (30.6 | ) | 152.7 | 122.1 | ||||||||||
Income taxes | 323.5 | 131.1 | 454.6 | 167.3 | 357.4 | 524.7 | ||||||||||||
Net income | $ | 1,187.8 | 603.3 | $ | 1,791.1 | $ | 1,130.3 | 748.3 | $ | 1,878.5 | ||||||||
Earnings per share – diluted | $ | 1.12 | 0.57 | $ | 1.69 | $ | 1.06 | 0.70 | $ | 1.76 |
(a) | The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The company’s non-GAAP measures adjust reported results to exclude amortization of intangibles and items that are typically highly variable, difficult to predict, and/or of a size that could have a substantial impact on the company’s reported operations for a period. The company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the company’s ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. Investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. |
22 |
(b) | Operating expenses include research and development and marketing, selling and administrative expenses. |
(c) | Adjustments to certain GAAP reported measures for the six months ended June 30, 2016, include the following: |
(Dollars in millions, except per share data) | Amortization(i) | Venezuela(ii) | Other specified items(iii) | Total Adjustments | ||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | ||||
Cost of sales | (337.2 | ) | — | — | (337.2 | ) | ||||||
Operating expenses | (3.9 | ) | — | — | (3.9 | ) | ||||||
Acquired in-process research and development | — | — | — | — | ||||||||
Asset impairment, restructuring and other special charges | — | — | (189.4 | ) | (189.4 | ) | ||||||
Other income (expense) | — | 203.9 | — | 203.9 | ||||||||
Income taxes | 106.8 | — | 24.3 | 131.1 | ||||||||
Net income | $ | 234.3 | $ | 203.9 | $ | 165.1 | $ | 603.3 | ||||
Earnings per share – diluted | $ | 0.22 | $ | 0.19 | $ | 0.16 | $ | 0.57 |
i. | Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties. |
ii. | Exclude charge related to the impact of the Venezuelan financial crisis, including the significant deterioration of the bolívar. |
iii. | Exclude charges associated with asset impairments related to the closure of an animal health manufacturing facility in Ireland and integration and severance costs for Novartis Animal Health. |
23 |
(d) | Adjustments to certain GAAP reported measures for the six months ended June 30, 2015, include the following: |
(Dollars in millions, except per share data) | Amortization(i) | IPR&D(ii) | Inventory step-up(iii) | Repurchase of debt(iv) | Other specified items(v) | Total Adjustments | ||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Cost of sales | (233.0 | ) | — | (131.9 | ) | — | — | (364.9 | ) | |||||||||
Operating expenses | (71.6 | ) | — | — | — | — | (71.6 | ) | ||||||||||
Acquired in-process research and development | — | (336.0 | ) | — | — | — | (336.0 | ) | ||||||||||
Asset impairment, restructuring and other special charges | — | — | — | — | (180.4 | ) | (180.4 | ) | ||||||||||
Other income (expense) | — | — | — | 152.7 | — | 152.7 | ||||||||||||
Income taxes | 99.9 | 117.6 | 37.6 | 53.5 | 48.8 | 357.4 | ||||||||||||
Net income | $ | 204.7 | $ | 218.4 | $ | 94.3 | $ | 99.3 | $ | 131.6 | $ | 748.3 | ||||||
Earnings per share – diluted | $ | 0.20 | $ | 0.20 | $ | 0.09 | $ | 0.09 | $ | 0.12 | $ | 0.70 |
i. | Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties. |
ii. | Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These costs included a $200.0 million payment to Pfizer following the FDA decision allowing the resumption of the Phase III clinical program for tanezumab, a $56.0 million charge associated with a collaboration with Innovent to develop potential oncology therapies, a $50.0 million payment to Hanmi related to an exclusive license and collaboration agreement for Hanmi’s oral BTK inhibitor for the treatment of autoimmune and other diseases, and a $30.0 million payment to BioNTech AG related to a research collaboration to discover novel cancer immunotherapies. |
iii. | Exclude inventory step-up costs associated with the acquisition of Novartis Animal Health. |
iv. | Exclude a net charge associated with the repurchase of $1.65 billion of debt. |
v. | Exclude costs associated with restructuring to reduce the company’s cost structure, asset impairments, and integration costs associated with the acquisition of Novartis Animal Health. |
24 |