As of March 31, 2011, cash, cash equivalents, and short-term investments were $6.71 billion compared with $6.73 billion at December 31, 2010. Cash, cash equivalents, and short-term investments remained relatively flat due to an increase in cash flow from operations of $1.18 billion that was offset by dividend payment of $543.2 million, acquisitions of $417.6 million, and net purchases of property and equipment of $101.4 million.

Eli Lilly expects cash flows to be sufficient for funding capital expenditures of $800 - $900 million, acquisitions and dividend in 2011.

The company will be conducting an analyst day meeting on June 30, 2011, when an update on long-term guidance and the pipeline is expected.
 

Pipeline setbacks like the discontinuation of the development of semagacestat and teplizumab and the delay in Bydureon’s approval have increased concerns regarding the company’s long-term growth prospects.
 

Lilly is facing a major patent cliff during the 2010 – 2015 time period. About 74% of the company’s revenues will be exposed to generic competition in the next several years.