EXHIBIT 11. STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE

(Unaudited)

Eli Lilly and Company and Subsidiaries

	Three Months Ended
	March 31,
	2007		2006
BASIC
Net income	$	508.7	$	834.8
Average number of common shares outstanding		1,088.4		1,085.2
Contingently issuable shares		1.3		.8
Adjusted average shares		1,089.7		1,086.0
Basic earnings per share	$	.47	$	.77
DILUTED
Net income	$	508.7	$	834.8
Average number of common shares outstanding		1,088.4		1,085.2
Incremental shares – stock options and contingently issuable shares		1.5		1.8
Adjusted average shares		1,089.9		1,087.0
Diluted earnings per share	$	.47	$	.77

Dollars and shares in millions except per-share data.