Eli Lilly and Company provided earnings guidance for 2014. The company expects full-year 2014 earnings per share to be in the range of $2.77 to $2.85 on both a reported basis and non-GAAP basis. Earnings per share expectations for 2014 reflect completed share repurchases from 2013 and potential share repurchases in 2014.

The company anticipates 2014 revenue of between $19.2 billion and $19.8 billion. Patent expirations are expected to drive a substantial decline in U.S. Cymbalta(R) and U.S. Evista(R) sales. These revenue declines are expected to be partially offset by growth from a portfolio of other products including Humalog(R), Trajenta(R), Cialis(R), Forteo(R) and Alimta(R), as well as the animal health business.

In addition, strong revenue growth is expected in China, while a weaker Japanese yen will dampen revenue growth in Japan. The company anticipates that gross margin as a percent of revenue will be approximately 74% in 2014. The 2014 tax rate is expected to be approximately 20%, assuming a full-year 2014 benefit of the R&D tax credit and other tax provisions up for extension.

If these items are not extended, the 2014 tax rate would be approximately 2 percentage points higher. The company expects to meet its 2014 net income and operating cash flow goals of $3.0 billion and $4.0 billion, respectively. Operating cash flows are expected to be sufficient to pay the company's dividend of approximately $2.1 billion, allow for capital expenditures of approximately $1.3 billion, and fund potential business development activity and share repurchases.

The company's 2014 financial guidance does not include a potential charge related to the collaboration with Pfizer to develop and commercialize tanezumab. As previously communicated, if the partial clinical hold for the molecule is removed and Lilly and Pfizer move forward with development, Lilly will pay a $200 million upfront fee to Pfizer. This charge would cause Lilly's GAAP tax rate to be roughly 1 percentage point lower than its non-GAAP tax rate and would reduce GAAP EPS by approximately $0.12.