EXHIBIT 11.  STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE

(Unaudited)

Eli Lilly and Company and Subsidiaries

	Three Months Ended
	March 31,
	2006		2005
BASIC
Net income	$	834.8	$	736.6
Average number of common shares outstanding		1,085.2		1,086.6
Contingently issuable shares		.8		.3
Adjusted average shares		1,086.0		1,086.9
Basic earnings per share	$	.77	$	.68
DILUTED
Net income	$	834.8	$	736.6
Average number of common shares outstanding		1,085.2		1,086.6
Incremental shares – stock options and contingently issuable shares		1.8		2.6
Adjusted average shares		1,087.0		1,089.2
Diluted earnings per share	$	.77	$	.68

Dollars and shares in millions except per-share data.