<SEC-DOCUMENT>0001214659-22-004204.txt : 20220322
<SEC-HEADER>0001214659-22-004204.hdr.sgml : 20220322
<ACCEPTANCE-DATETIME>20220322151946
ACCESSION NUMBER:		0001214659-22-004204
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20220322
DATE AS OF CHANGE:		20220322
EFFECTIVENESS DATE:		20220322

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ELI LILLY & Co
		CENTRAL INDEX KEY:			0000059478
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				350470950
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06351
		FILM NUMBER:		22759187

	BUSINESS ADDRESS:	
		STREET 1:		LILLY CORPORATE CTR
		STREET 2:		DROP CODE 1094
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46285
		BUSINESS PHONE:		3172762000

	MAIL ADDRESS:	
		STREET 1:		LILLY CORPORATE CENTER
		STREET 2:		DROP CODE 1094
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46285

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LILLY ELI & CO
		DATE OF NAME CHANGE:	19941024

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Mercy Investment Services, Inc.
		CENTRAL INDEX KEY:			0001699865
		IRS NUMBER:				263224636
		STATE OF INCORPORATION:			MO
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		2039 NORTH GEYER ROAD
		CITY:			ST. LOUIS
		STATE:			MO
		ZIP:			63131
		BUSINESS PHONE:		314-909-4609

	MAIL ADDRESS:	
		STREET 1:		2039 NORTH GEYER ROAD
		CITY:			ST. LOUIS
		STATE:			MO
		ZIP:			63131
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>Eli Lilly and Company</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>Vote FOR: Item #9 &ndash; &ldquo;Proposal to Disclose Lobbying
Activities and Alignment with Public Policy Positions and Statements&rdquo; </B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>Annual Meeting: May 2, 2022</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>Contact: Laura Krausa &bull; CommonSpirit Health</B> &bull;
<B>laura.krausa@commonspirit.org</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; padding-top: 2pt; margin: 0pt 0; text-align: center; background-color: #EEECE1; padding-bottom: 2pt"><B>Introduction</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">March 22, 2022</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">To Eli Lilly &amp; Company Stockholders:</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">CommonSpirit Health, along with co-filers School Sisters of Notre Dame, Sisters of
St. Francis-Dubuque, and Missionary Oblates of Mary Immaculate are urging stockholders to vote FOR Item #9 at the Eli Lilly and Company
(Lilly) stockholder meeting on May 2, 2022.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">The proposal calls for Lilly&rsquo;s board to publish a report to shareholders disclosing
whether the company&rsquo;s lobbying activities align with its public policy positions and statements, particularly regarding Lilly&rsquo;s
goals of promoting access and affordability of medicines and fairness and transparency in the biopharmaceutical industry.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; padding-top: 2pt; text-align: center; background-color: #EEECE1; padding-bottom: 2pt"><B>Resolved Clause</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Resolved: Shareholders request that the Board of Directors commission and publish
a third party review within the next year (at reasonable cost, omitting proprietary information) of whether Eli Lilly and Company&rsquo;s
(&ldquo;Lilly&rsquo;s&rdquo;) lobbying activities (direct and through trade associations) align with Lilly&rsquo;s public policy position
and public statements, particularly supporting &ldquo;making medicines more accessible and affordable to patients&rdquo; and &ldquo;fairness
and transparency in the biopharma industry.&rdquo; The report should discuss how Lilly addresses the risks presented by any misaligned
lobbying and its plans, if any, to mitigate these risks.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; padding-top: 2pt; text-align: center; background-color: #EEECE1; padding-bottom: 2pt"><B>Rationale for a YES Vote</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><U>Support for the proposal will:</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Safeguard Lilly&rsquo;s reputation by providing a clear and transparent mechanism for demonstrating alignment in the Company&rsquo;s
stated commitments and public policy positions with their political activities as they relate to access and affordability;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Provide an opportunity for Lilly to address risk mitigation that will ensure corporate stability and long-term shareholder value;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Bolster shareholder confidence on the Company&rsquo;s governance structures;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>And avoid financial and potentially legal risks that may result from consumer dissatisfaction/disagreement with the Company's adherence
to its own stated commitments and positions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; padding-top: 2pt; text-align: center; background-color: #EEECE1; padding-bottom: 2pt"><B>Discussion</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">There is abundant information to demonstrate that Lilly directly lobbies against
public policy that supports drug access and affordability. Open Secrets reported this past September that U.S. House Democrats voted against
a significant provision in the reconciliation plan (which included UR HR 3) that would lower prescription drug prices, and that the key
Democrat holdouts received &quot;large campaign contributions from pharmaceutical industry PACs and CEOs.&quot;<SUP>1</SUP> Leading the
resistance to the legislation was Rep. Scott Peters (D-Calif.). Open Secrets reported:</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>1</SUP> https://www.opensecrets.org/news/2021/09/pharmaceutical-industry-backs-democratic-holdouts-on-drug-pricing-plan/</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&quot;Peters has received consistent financial support from the pharmaceutical industry
since he was first elected in 2012. Over his career, pharmaceutical PACs and employees have donated $860,465 to his campaigns, the second
most of any industry, according to OpenSecrets data. So far in the 2022 election cycle, Peters tops all House members and candidates in
contributions from the pharmaceutical industry at $88,550.&quot; Further, one day after Peters led the opposition to the cost-lowering
provision, he received &quot;multiple large contributions from the chief executive officers of pharmaceutical companies,&quot; including
$5,000 from Lilly CEO David Ricks.<SUP>2</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">The financial contributions, through Lilly's PACs and direct contributions from executive
employees, make it impossible for Lilly to assert that the Company does not fund opposition to policies that would lower prescription
costs.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">In its opposition statement, Lilly says it does &quot;oppose legislative policies
that would hinder medical discovery for patients,&quot; which is the argument the Company uses as cover for activities that directly oppose
lowering drug costs. Experts disagree<SUP>2</SUP>with this argument and believe that any revenue reductions that may come as a result
of drug pricing reform would actually advance innovation. The Indiana Business Journal reported that those who disagree with the medical
discovery argument say that revenue reduction would result in high value medicines moving forward while those with &quot;fewer benefits
would have a harder path,&quot; resulting in &quot;better innovation by being smart in how we pay.&rdquo;<SUP>3</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">In the Company&rsquo;s opposition statement, Lilly claims that its public disclosure
(found on their Public Policy Engagement and Political Participation webpage: https://www.lilly.com/policies-reports/public-policy-political-participation)
is sufficient to meet the requests of the shareholder proposal regarding its lobbying activities. However, there is a distinct difference
between disclosure and demonstration of alignment. For example, the page links to company reports and to public sites where one can review
political contributions and lobbying activities, but it is impossible to understand the context within which contributions were made or
lobbying activities were conducted. In an example of a lobbying disclosure report (https://disclosurespreview.house.gov/ld/ldxmlrelease/2020/Q4/301234449.xml),
it is clear that the company addressed &ldquo;drug pricing, value and access,&rdquo; but to the Company&rsquo;s point - was this done
in the interest of expanding patient access and affordability or was it done in the interest of preserving financial mechanisms that the
company claims as a lifeline for innovation, research and development - or what they call &ldquo;medical discovery&rdquo; in their opposition
statement.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">With regard to alignment of public policy commitments and lobbying, Lilly provides
several examples in its opposition statement of legislation it supports to improve the U.S. health care system. However, they point to
possible regulation of other industries, such as insurance, and entirely fail to address the role of pharmaceutical manufacturers. While
the U.S. health care system is certainly complex with many cogs in the machine, it is hard to imagine a more important player than companies
such as Lilly that produce and price the products that this very health care system consumes.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Lilly does disclose its affiliation with trade associations, but it fails to address
significant concerns with misalignment in a trade association position and Lilly&rsquo;s stated position. In Minnesota, for example, the
2020 Alec Smith Insulin Affordability Act was passed in response to the increasing cost of insulin that has forced some people to ration
their insulin supply. The legislation regulates insulin costs, providing solutions for both urgent and continuing needs. Manufacturers
are responsible for the provision covering continuing need and are required to provide insulin to those who do not have insurance for
one year. Patients have an option to renew annually, with 90-day supplies costing $50. Manufacturer noncompliance comes with a fine of
up to $3.6 million in the first year and the potential for that fine to double in the second year.<SUP>4</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>2</SUP> https://www.washingtonpost.com/business/2021/11/05/pharmaceutical-industry-drug-price-lobbying/</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>3</SUP> https://www.ibj.com/articles/lilly-ceo-says-letting-medicare-negotiate-drug-prices-would-bring-research-cuts</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><SUP>4</SUP> https://www.pharmacytimes.com/view/minnesota-fights-back-against-rising-insulin-costs</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">The act was unfortunately immediately challenged in court by the Pharmaceutical Research
and Manufacturers of America (PhRMA) - one of Lilly&rsquo;s trade associations &ndash; naming the Minnesota Pharmacy Board and MNSure,
the state&rsquo;s health insurance marketplace, as defendants. The Pharmacy Times reported that &ldquo;the day before the act went into
effect, PhRMA filed a lawsuit claiming the act violated the US Constitution. &lsquo;Minnesota is forcing insulin manufacturers to give
their product to state residents for free, without any compensation from Minnesota in return,&rsquo; PhRMA said in the suit.&rdquo;<SUP>5
</SUP>A US District Court Judge dismissed the lawsuit, saying PhRMA did not have standing to bring the case to federal court. PhRMA then
appealed the decision to Eighth Circuit Court, and there is no timetable for a decision.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Lilly asserts in its opposition statement that preparing a separate report on misaligned
lobbying practices would &ldquo;place an undue administrative burden on the Company.&rdquo; However, Lilly is required by law to report
all of its direct and indirect lobbying, so that information is readily available. Additionally, the proposal calls for a third party
review of the company&rsquo;s practices which investors believe should not be onerous on the Company and which should provide for the
opportunity to identify risks associated with misalignment, thereby preserving the reputation and financial stability of Lilly.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Proponents urge your support for the proposal. If you have any questions please contact
Laura Krausa at laura.krausa@commonspirit.org.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; padding-top: 2pt; text-align: center; background-color: #EEECE1; padding-bottom: 2pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center">&nbsp;<B>Vote &ldquo;FOR&rdquo; on Shareholder Proposal #9, &ldquo;Proposal
to Disclose Lobbying Activities and Alignment with Public Policy Positions and Statements&rdquo; </B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>at the annual general meeting on May 2, 2022. </B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">THE FOREGOING INFORMATON MAY BE DISSEMINATED TO SHAREHOLDERS
VIA TELEPHONE, U.S. MAIL, EMAIL, CERTAIN WEBSITES AND CERTAIN SOCIAL MEDIA VENUES, AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE OR
AS A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. THE COST OF DISSEMINATING THE FOREGOING INFORMATION TO SHAREHOLDERS IS BEING BORNE
ENTIRELY BY ONE OR MORE OF THE CO-FILERS. PROXY CARDS WILL NOT BE ACCEPTED BY ANY CO-FILER. PLEASE DO NOT SEND YOUR PROXY TO ANY CO-FILER.
TO VOTE YOUR PROXY, PLEASE FOLLOW THE INSTRUCTIONS ON YOUR PROXY CARD.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><I>The filer of this document is by Mercy Investment Services, Inc. 2039 N. Geyer
Rd., St. Louis, MO 63131</I></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>This is not a solicitation of authority to vote your proxy.</B></P>

<P STYLE="font: 10pt Times New Roman; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>Please DO NOT send us your proxy card as it will
not be accepted</B></P>

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