Eli Lilly's worldwide total revenue declined by 11.5 per cent to $5,443 million from $ 6,148 million  during the third quarter of 2011 due to the loss of patent exclusivity for Zyprexa in most major markets. Total revenue in the US decreased 9 per cent to $2,986 million. Total revenue outside the US decreased by 15 per cent to $2,457 million, driven by the loss of patent exclusivity for Zyprexa in markets outside of Japan, the unfavourable effect of foreign exchange rates, and decreased prices, partially offset by increased volume in other products.

The company has posted net profit growth of 7.4 per cent during the third quarter ended September 2012 despite lower sales. Its net profit moved up to $1,327 million from $1,236 million in the corresponding period of last year. The increases in net income and earnings per share were driven by the early payment of the exenatide revenue-sharing obligation, partially offset by lower operating income.

"The third quarter was an eventful one for Lilly, as we gained a better understanding of several potential new medicines in our clinical pipeline, while maintaining focus on delivering solid financial results despite the loss of Zyprexa patent exclusivity," said John C. Lechleiter,  Lilly's chairman, president and chief executive officer. "We are executing well on our business objectives and advancing our pipeline that now has more than 60 molecules in clinical development. We remain firmly committed to our innovation-based strategy in order to meet the needs of the patients who rely on us for new medicines."

Following the completion of its acquisition by Bristol-Myers Squibb, Amylin paid to Lilly $1.259 billion in satisfaction of its revenue-sharing obligation with respect to exenatide. In addition, Amylin also repaid to Lilly a $165 million loan plus accrued interest.

Gross margin decreased 12 per cent to $4.240 billion in the third quarter of 2012. Gross margin as a percent of total revenue was 77.9 percent, reflecting a decrease of 0.3 percentage points compared with the third quarter of 2011. The decrease in gross margin percent was primarily due to lower sales of Zyprexa, largely offset by the impact of foreign exchange rates on international inventories sold which decreased cost of sales in the third quarter of 2012 and increased cost of sales in the third quarter of 2011.

Research and development expenses increased 5 per cent to $1.343 billion, or 24.7 per cent of total revenue, driven by expenses related to late-stage clinical trials.

The effective tax rate was 29.2 per cent in the third quarter of 2012, compared with an effective tax rate of 17.7 per cent in the third quarter of 2011. The increase in the third quarter 2012 effective tax rate reflects the tax impact of the payment received from Amylin and the expiration of the R&D tax credit in the US at the end of 2011, while the third quarter 2011 tax rate was lower primarily due to the recognition of a $45.4 million discrete benefit primarily as a result of the resolution of the IRS audit of the company's 2007 federal income tax return.