Lilly(LLY) - 2025 Q4 - Annual Report

Workforce and Culture - The company employs approximately 12,000 people in pharmaceutical research and development activities as of the end of 2025[91] - At the end of 2025, the company employed approximately 50,000 people, including around 27,000 employees outside the U.S. and approximately 12,000 engaged in research and development activities[113] - The company emphasizes a positive, inclusive culture that values employee contributions, which is believed to drive long-term success in discovering and commercializing innovative medicines[110] - The company conducts regular confidential employee surveys to gather feedback, which helps identify opportunities for improving employee experience and practices[112] - The company is committed to creating a safe and rewarding work environment, focusing on fairness, robust training, and competitive pay and benefits[111] - The company has a strong focus on human capital management, which is integral to attracting and retaining a skilled workforce[110] - The executive team includes individuals with extensive experience, such as David Ricks, CEO, who has 29 years of service with Lilly[109] Research and Development - The company focuses its internal pharmaceutical research on cardiometabolic health, immunology, neuroscience, and oncology[92] - The pharmaceutical development process can take over a decade from discovery to regulatory approval, with a very low probability of candidates becoming approved medicines[94] - The early development phase of drug candidates can take several years, with only a fraction moving to late development[96] - Late phase development projects typically have a higher likelihood of success and are designed to support regulatory filings for marketing approval[97] - The company collaborates with academic institutions and other pharmaceutical companies to enhance its research and development efforts[93] Manufacturing and Supply Chain - The company has undertaken significant manufacturing expansion initiatives, including new sites in North Carolina, Wisconsin, Indiana, Virginia, Texas, Alabama, Pennsylvania, Ireland, Germany, and the Netherlands[101] - The company manages its supply chain to meet product demand while maintaining flexibility to reallocate manufacturing capacity[103] - Quality assurance is critical to the company's success, requiring strict control of ingredients, manufacturing methods, and testing at various production stages[105] Regulatory and Compliance - The U.S. government imposed new tariffs on Chinese goods in 2025, which could significantly impact the company's operations and results[102] - The company’s website provides access to SEC filings, including Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which are available free of charge[114] - The company utilizes its website and social media channels to disclose material information to investors, ensuring compliance with disclosure obligations[116] - The company has a structured governance framework, including corporate governance guidelines and board information available on its website[115] - Quantitative and qualitative disclosures about market risk, including interest rate risk, are detailed in the Management's Discussion and Analysis section of the financial reports[278]