Lilly and BioMS Medical Announce Global Licensing and Development...(charges related to adjustment to ...)

related to adjustment to

insurance recoverable - .06

Eliminate in-process

research & development

charges associated with

ICOS, Hypnion, and Ivy

acquisitions and OSI,

Glenmark and MacroGenics

in-licensing transactions - .63

Include pro forma as if

the ICOS acquisition was

completed on January 1,

2006 - (.01)

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E.P.S. (pro forma

adjusted) $3.85 to $4.00 $3.50 to $3.55 8% to 14%

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About MBP8298

MBP8298 is a synthetic peptide that consists of 17 amino acids having a sequence identical to that of a portion of human myelin basic protein (MBP). MBP8298 is being developed for the potential treatment of multiple sclerosis (MS), an autoimmune disease caused by immune attack against normal components of the central nervous system. The sequence of MBP8298 is associated with the autoimmune process in MS patients with certain immune response genes (HLA types DR2 and/or DR4); MS patients having these genes represent 65 to 75 percent of all MS patients.

The apparent mechanism of action of MBP8298 is the induction or restoration of immunological tolerance with respect to ongoing immune attack as a result of high doses of peptide delivered periodically by the intravenous route. The potential benefit of MBP8298 for any individual patient is therefore expected to be related to the role this peptide plays in that patient's immune system. The degree of immunomodulation achieved will depend on the relationship among the peptide, HLA molecules and T cells.

The results of phase II and long-term follow-up treatment of MS patients with MBP8298, published in 2006 in the European Journal of Neurology (EJN), show
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