EXHIBIT 11. STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE ON PRIMARY AND FULLY DILUTED BASES (Unaudited) Eli Lilly and Company and Subsidiaries Three Months Ended March 31, 1997 1996 (Dollars in millions except per-share data) (Shares in thousands) PRIMARY: Net income ........................... $432.6 $389.2 Preferred stock dividends ............ (.6) - Adjusted net income .................. 432.0 389.2 Average number of common shares outstanding .......................... 549,468 546,314 Incremental shares - stock plans and contingent payments 16,797 13,908 Adjusted average shares .............. 566,265 560,222 Primary earnings per share ........... $ .76 $ .69 FULLY DILUTED: Net income ........................... $432.6 $389.2 Preferred stock dividends ............ (.6) - Adjusted net income .................. 432.0 389.2 Average number of common shares outstanding .......................... 549,468 546,314 Incremental shares - stock plans and contingent payments 16,797 16,043 Adjusted average shares .............. 566,265 562,357 Fully diluted earnings per share ..... $ .76 $ .69 Common stock equivalents are not materially dilutive and, accordingly, have not been considered in the computation of reported net earnings per common share.