Eli Lilly and Company announced unaudited earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, on GAAP basis, the company reported revenue was $5,760.5 million compared to $5,375.6 million a year ago. Operating income was $876.2 million compared to $399.9 million a year ago. Income before income taxes was $892.0 million compared to $444.6 million a year ago. Net income was $771.8 million compared to $478.4 million a year ago. Diluted earnings per share were $0.73 compared to $0.45 a year ago. On non GAAP basis, net income was $1,013.4 million compared to $828.2 million a year ago. Diluted earnings per share were $0.95 compared to $0.78 a year ago. The revenue increase was driven by an 8% increase due to volume, a 1% favorable impact of foreign exchange rates, and a realized price decrease of 1%, primarily due to lower realized prices outside the U.S. The increase in worldwide volume was driven by Trulicity and other new pharmaceutical products, including Jardiance, Taltz, Cyramza and Basaglar. The increase in volume was also driven by Humalog, Humulin and companion animal products. The total volume increase was partially offset by decreased volumes for Alimta, Zyprexa and Cymbalta. The increases in net income and earnings per share were driven by higher operating income, partially offset by a higher effective tax rate.

For the year on GAAP basis, the company reported revenue was $21,222.1 million compared to $19,958.7 million a year ago. Operating income was $3,458.8 million compared to $2,689.4 million a year ago. Income before income taxes was $3,374.0 million compared to $2,790.0 million a year ago. Net income was $2,737.6 million compared to $2,408.4 million a year ago. Diluted earnings per share were $2.58 compared to $2.26 a year ago. On non GAAP basis, net income was $3,735.6 million compared to $3,656.3 million a year ago. Diluted earnings per share were $3.52 compared to $3.43 a year ago. Higher revenue was due to increased volume, as realized prices and the impact of foreign exchange rates were relatively flat. The worldwide volume increase was primarily driven by Trulicity and other new pharmaceutical products, including Cyramza, Jardiance and Taltz, as well as Humalog and Erbitux (due to the transfer of commercialization rights in North America to Lilly). The increases in net income and earnings per share were due to higher operating income, partially offset by lower other income and a higher effective tax rate.

The company revised earnings guidance for the year 2017. Earnings per share for 2017 are now expected to be in the range of $2.69 to $2.79 on a reported basis, primarily due to the estimated acquired in-process research and development charge related to the planned acquisition of CoLucid Pharmaceuticals. The prior guidance of earnings per share was $3.51 to $3.61. Earnings per share for 2017 are still expected to be $4.05 to $4.15 on a non-GAAP basis. Revenue is still expected to be in the range of $21.8 billion to $22.3 billion, Gross margin % of revenue is still expected to be approx. 73.5%, gross margin % of revenue (non-GAAP) is still expected to be approx. 77.0%, research & development is still to be in the range of $4.9 billion to $5.1 billion. Tax rate (reported) is revised to be approx. 24.5% from the previous guidance of approx. 20.0%, tax rate (non-GAAP) is still expected to be approx. 22.0%. Capital expenditures were still expected to be approx. $1.2 billion.