e mid-single digits. The company still anticipates that the impact of U.S. health care reform will lower 2011 revenue by $400 million to $500 million. 2011 revenue guidance assumes rapid and severe erosion of global Zyprexa sales after patent expirations in major markets, including the U.S. starting in October 2011, and the continued erosion of U.S. Gemzar sales. The company expects these reductions in revenue to be offset by sales growth of Alimta, Cialis, Cymbalta, Effient, Humalog and animal health products.
The company still anticipates that gross margin as a percent of revenue will decline between 2 and 3 percentage points.
Marketing, selling and administrative expenses are still projected to grow in the high-single digits and still include an estimated $150 million to $200 million in non-tax deductible expense for the mandatory pharmaceutical manufacturers fee associated with U.S. health care reform. Research and development expense growth is still projected to be in the low single digits.
Other income is now expected to be a net expense of between $175 million and $225 million.
The tax rate is now expected to be approximately 20 percent on a non-GAAP basis and approximately 19.5 percent on a reported basis.
Cash flows are still expected to be sufficient to fund capital expenditures that are now expected to be approximately $700 million, as well as anticipated business development activity and the company's dividend.
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the third-quarter 2011 financial results conference call through a link on Lilly's website at www.investor.lilly.com. The conference call will be held today from 9:00 a.m. to 10:00 a.m. Eastern Daylight Time (EDT) and will be available for replay via the website through November 18, 2011.
Lilly, a leading innovation-driven corporation, is develPage: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Related medicine technology :1
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. Lilly Announces Changes in Senior Management3
. Lilly Confirms Date and Conference Call for Third-Quarter 2011 Financial Results Announcement4
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. Eli Lilly and Company Bringing Diabetes Education Program to the Annual Legislative Conference6
. Lilly Celebrates 17th Consecutive Year as One of Working Mother 100 Best Companies7
. Lilly Health Channel Debuts on YouTube8
. Boehringer Ingelheim and Lilly to Feature Type 2 Diabetes Research in Presentations at the 47th Annual Meeting of the European Association for the Study of Diabetes9
. The American Diabetes Association and Eli Lilly and Company Encourage African Americans to Learn About Diabetes Through a Familiar Face10
. Lilly Announces Review of Data on Long-Term Raloxifene Treatment for Postmenopausal Osteoporosis Published in Current Medical Research & Opinion11
. U.S. Court of Appeals Affirms Validity of Lillys Strattera Patent