Lilly Reports Solid First-Quart...(e Transition's gastrin-based therapies ....)

including the lead compound TT-223, which is currently in early

Phase II testing as a potential treatment for type 2 diabetes.

-- The company launched Humalog KwikPen(TM), a new insulin pen prefilled

with the Humalog brand of insulins.

-- The company initiated enrollment of a Phase III clinical trial studying

LY450139, an investigational gamma-secretase inhibitor for the

treatment of mild to moderate Alzheimer's disease.

-- European health authorities approved Alimta in combination with

cisplatin as a first-line treatment for non-small-cell lung cancer

patients with other than predominantly squamous cell histology.

-- The company, along with its partner, Amylin Pharmaceuticals, Inc.,

submitted Byetta as a monotherapy treatment for type 2 diabetes to the

FDA.

-- The company announced a streamlining of a portion of its manufacturing

operations in Indianapolis and is offering a voluntary exit program to

employees in selected areas. In total, the voluntary program is

expected to reduce the company's Indianapolis employment by up to 500

people, predominantly in manufacturing but with a small portion in

selected areas of research and development.

"Following strong performance in 2007, Lilly continued to deliver solid financial results in the first quarter of 2008," commented John Lechleiter, Ph.D., Lilly president and new chief executive officer. "Double-digit sales growth was once again primarily driven by volume. The sales growth of Cymbalta, Cialis, Alimta, Forteo and Humalog was especially encouraging. We also made appropriate investments in R&D to accelerate the progress of our mid-stage pipeline, resulting in six molecules advancing to the next stage on clinical development this past quarter, while at the same time delivering strong earnings per share growth for the
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