Eli Lilly: The Securities And Exchange Commission Form 10-Q

3. Collaboration with similar companies in search and development of new products and thereby decreasing the competition for resources within the company.

Eli Lilly & Company (Lilly) was founding in 1876 by Colonel Eli Lilly in Indianapolis, Indiana. A veteran of the United States Civil War and a pharmaceutical chemist by trade, Lilly set out to start a company with three underlying goals. First manufacture high quality pharmaceutical products, second medications would be dispensed by medical staff rather than through a mobile tradeshows which was popular at the time, and finally, Lilly’s medication would be developed using current science data. In 1886, Lilly went on to hire a pharmaceutical chemist which led to Lilly’s esteemed research and development history that they are known for to this very day (Lilly, 2015).

The U.S. Securities and Exchange (SEC) was created in response to the 1929 stock market crash which was responsible to monitor and regulate the stock market after the crash which led to the Great Depression. Since the creation of U.S. Securities and Exchange agency multiple laws and regulations were added to help maintain the balance and oversight of the exchanges and the stock market. Additional laws and regulations have been added as a result in condition or incident within the stock market, corporations, and securities. Several scandals since 2002 have led to an increase of laws and regulations, these laws have led to controversial topics dealing with the costs associated by enacting regulations. Are we over or under regulating, or

The primary ethical dilemma in this case revolves around corporate social responsibility and ethical practices versus profitability and maximizing shareholder wealth. In this case, Merck had to decide between profits at the center of the company’s shareholders wealth, the company’s image from a corporate social responsibility perspective, and the welfare of the community. The company had a responsibility to safely serve the public and meet the interest of all parties involved without compromising the interests of key stakeholders. Merck's practices regarding the Vioxx debacle were clearly designed towards generating profits, with no consideration given towards protecting the consumer. Consequently, they stand in clear violation of the principles

Lilly is a 4-year-old Preschool student at the Early Childhood Development Center in Johnson County. When I was conducting the following assessment Lilly had a very positive attitude, smiled, and did her best. She did well on syllabicating words she was able to clap for each time she heard a syllable in the five different names provided. She also did well on the concepts of print assessment. For her oral assessment she was able to put together many whole sentences. As well as, interact with another student keeping the same subject for an extended amount of time. I believe that Lilly’s drawing is detailed and she did a good job explaining what she was trying to portray in her drawing.

Eli Lilly is a profitable company and is one of the top pharmaceutical firms. The company has faced losses in the year 2008 but appears to have been recovering strongly. While Lilly has much lower earnings than its competitor, Pfizer, Lilly’s ROA and ROE are substantially higher than Pfizer. However, Lilly’s earnings fell by 14.2% in the year 2011, and ROA and ROE also fell during the period. Its P/E ratio fell substantially since 2008 due to the market’s lack of optimism about Lilly’s future. Lilly’s management is under considerable pressure to reverse the declining trend. Thus, management would have incentives to manipulate the areas of accounting that require judgment call like revenue recognition policies and valuation allowances to boost in earnings in 2011.

Slide 3: Financial statements for public companies are compiled according to Generally Accepted Accounting Principles, or GAAP. This is mandated by the Securities and Exchange Commission as a means of ensuring that companies produce these statements consistently. That allows investors to easily compare different companies when they are

The pharmaceutical industry is heavily regulated. According to Lilly’s 10-K, their operations are extensively regulated by numerous national, state, and local agencies. FDA mainly regulates all the testing, safety, quality control and post-marketing surveillance of pharmaceutical products. Accounting for liabilities will then be a significant part of any lawsuits, thus, as an auditor, I would have to further look into the contingent liabilities in their balance sheet. They have been subject to increasing government price control measures. Lilly also has international operations hence, is subject to extensive price and market regulations in those regions as well.

In order to view ethical dilemmas, we have to evaluate descriptive ethics that are present in a situation. These descriptive ethics lay the foundation, to which, we are able to understand a circumstance in its entirety. They are the concrete evidence where we can access all ethical boundaries and establish what is considered morally inhabitable.

Eli Lilly is a lending pharmaceutical company based in the United States. Looking to globalize their company and emerge into the Asian markets, they entered into a joint venture with Ranbaxy, who are based in India. With Eli Lilly’s expertise in foreign knowledge and having many resources and capital, this was a great complement to Ranbaxy who provided government contacts and information on the local markets. Dr. Tallarigo is the president of Intercontinental Operations and also the decision maker in this case. As the Indian market recognized patent protection in 2005, this attracted more foreign investments, which in turn caused Tallarigo to re-evaluate the joint venture with Ranbaxy. Ranbaxy appeared to want to exit the joint venture due to large financial burdens from their large network of international sales, along with wanting to refocus their business to become an international research and development

Johnson & Johnson marketable securities are important in financial reporting and audit implication for the classification chosen by the company. The held for maturity securities are valued at amortized cost which subject to an impairment test. Both the trading securities and the available for sale securities ae carries at fair market value. Therefore, the auditor has a major judgment challenge in corroborating management’s intent in classifying the assets, including gathering information about management compensation and determining fair value. The auditor needs to understand the economic purpose of major marketable securities transaction in relation to the risk undertaken by managements in making the investment. The audit of these Marketable Securities will consist of several substantive tests on the financial assertions and to

Johnson & Johnson was founded in 1886, in New Brunswick, New Jersey, by brothers Robert, James, and Edward Johnson. Johnson & Johnson is a multifaceted pharmaceutical and healthcare company, established as an industry leader and a widely recognized brand. Johnson & Johnson has grown to include over 250 subsidiary companies in more than sixty countries that employ nearly 200,000 workers, specializing in a broad array of products that range from bandages to drugs and medical devices. Despite numerous product recalls and legal predicaments, Johnson & Johnson has remained one of the largest and most successful businesses in the health and medicine industry. In 1954, when Johnson & Johnson introduced the No More Tears line of baby shampoo, they became the first company in the world to have a line of products made specifically for babies. The No More Tears brand has evolved from shampoo into an entire line of baby products that has helped Johnson & Johnson remain the world leader in the market of body cleaners for babies. Johnson & Johnson’s current annual sales for their consumer care products is approximately $13.5 billion worldwide, $5.2 billion in the United States, with their baby line accounting for approximately $2 billion of that total.

The two companies had very different business focuses. Ranbaxy was a company driven by the generics business. Lilly, on the other hand, was driven by innovation and discovery. (p.11)

Statement of Cash Flow of Pfizer Company for the year ended on 31 March 2014 In Millions

These forecasts for 2013/2014 have been identified within the financial accounts of Pfizer for 2012/2013.