Eli Lilly Offers $12 Flat Fee Per Prescription for Seniors And People With Disabilities

Indianapolis, IN - March 5, 2002

To assist those seniors and people with disabilities enrolled in Medicare, who most need help in purchasing vital prescription drugs, Eli Lilly and Company today announced the creation of the LillyAnswers patient assistance program. The centerpiece of the program, the LillyAnswers card, allows low-income seniors without prescription drug coverage to pay a flat fee of $12 for a 30-day supply of any Lilly retail drug.(1) Eligible participants can save an average of nearly $52.00 per 30-day prescription, or an average of $600 per year per medication under Lilly's $12 fee.(2)

LillyAnswers will provide eligible Medicare beneficiaries access to Lilly's portfolio of retail products for illnesses such as osteoporosis, diabetes, depression, and schizophrenia -- chronic diseases that afflict nearly 18 million or one of every two seniors.(3) These products include Evista(R) for osteoporosis, Humulin(R) and Humalog(R) for diabetes, Prozac(R) for depression, and Zyprexa(R) for schizophrenia.

"LillyAnswers will provide real savings, right away, to Medicare beneficiaries in the greatest need," said Sidney Taurel, chairman of the board, president and CEO of Eli Lilly and Company. Seniors with an annual income below $18,000 per individual or $24,000 per household, with no prescription drug coverage, are eligible for the LillyAnswers program. It offers immediate help to the more than five million Americans who qualify.

"Families, caregivers, communities and companies such as ours all recognize many seniors need extra assistance at this time," commented Taurel. "While developing innovative medicines is our mission, we know that individuals must have access to those medicines in order for that innovation to be of any real value. We hope and expect that Congress will enact federal legislation that provides broad prescription drug coverage to all seniors. In the meantime, we decided to act now in order to provide this assistance to individuals in need."

LillyAnswers builds on the company's long tradition of providing patient assistance. In 2001, the LillyCares program provided more than $200 million of products to over 370,000 seniors and uninsured patients. "Through LillyAnswers, we simplified and amplified our commitment to seniors who need medication in order to live longer, healthier, and more active lives," said Taurel.

In addition to offering a month's prescription for a flat $12 fee, LillyAnswers will provide additional help to seniors and families facing the complex challenges illness presents. Included in the LillyAnswers assistance package is One Care Street(TM), an award-winning program in which patients can build a personalized and convenient information resource, complete with nutritional guidance, exercise recommendations, alternative treatments and medicines, and step-by-step health action guides.

Estimated Annual Cost Savings of Lilly Prescription Drugs with LillyAnswers

Prescription Medication	Surveyed Retail Price*	LillyAnswers $12 Monthly fee annualized	Annual Savings
Evista	$782.74	$144.00	$638.74
Humulin	$543.80	$144.00	$399.80
Prozac	$1,000.29	$144.00	$856.29

* Based on typical elderly doses and 3/1/02 Internet survey sample of retail prices for common Lilly products at major U.S. pharmacy chains.

"Lilly has taken an important step in helping the neediest of seniors gain access to critical prescription drugs," said U.S. Health and Human Services Secretary Tommy Thompson. "This innovative approach demonstrates the private sector's willingness to address this important issue between now and the time we implement Medicare reform. We thank them for stepping forward."

"Lilly believes drug coverage for all Medicare beneficiaries is long past due and that its design is critical. We believe that market-based prescription drug coverage for all Medicare beneficiaries is the best long-term solution to provide all seniors access to the medicines they need," said Taurel. "We are moving forward with LillyAnswers because even legislation enacted tomorrow will take significant time -- perhaps years -- to implement. Between now and then, we are committed to two things: to help seniors in greatest need and to do whatever we can to support the speedy enactment of Medicare reform that benefits all seniors."

"Seniors should not have to choose between paying for groceries or taking prescription drugs," said U.S. Senator Evan Bayh (D-IN). "While we commit ourselves to crafting a long-term, comprehensive solution, Lilly's effort is an important first step toward helping seniors."

"It's befitting that the first company to develop and manufacture insulin would offer assistance to our country's neediest seniors, too many of whom suffer from diabetes," said John H. Graham IV, Chief Executive Officer, American Diabetes Association. "Eli Lilly and Company has been a dedicated partner in our fight against this disease. Today's announcement is another example of their continued efforts."

The $12 flat fee charged to eligible seniors covers the cost of distributing products and determining eligibility and only partially offsets pharmacists' costs. "We appreciate the leadership and cooperation of America's pharmacists in administering this important program for needy seniors," said Taurel.

Additionally, a wide range of government leaders and organizations have lent their support to the LillyAnswers program.

How To Apply

Beginning March 5, Medicare-enrolled seniors and disabled who meet eligibility requirements can apply for a LillyAnswers card by calling 1-877-RX-LILLY to request an application. Program enrollment is free, and the application process takes two to four weeks.

Participating pharmacies will begin accepting the card April 1, and once a patient receives a LillyAnswers card in the mail, he or she will be covered for 12 months for Lilly retail products purchased at participating pharmacies. LillyAnswers will be administered by Argus Health Systems, Inc., an independent provider of pharmacy claims processing.

Lilly, a leading innovation-driven corporation, is developing a growing portfolio of best-in-class pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers -- through medicines and information -- for some of the world's most urgent medical needs.

Excludes controlled substances as well as products not distributed by retail pharmacies.
Based on 3/1/02 Internet survey sample of retail prices for common Lilly products at major U.S. pharmacy chains.