EXHIBIT 11.  STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
                                  (Unaudited)


                     Eli Lilly and Company and Subsidiaries



                                                                              Three Months Ended
                                                                                  March 31,
                                                                           1999               1998
                                                                   -------------------------------------
                                                                                  
BASIC
 
Net income.........................................................     $  625.7           $  521.1     
                                                                                                        
Preferred stock dividends..........................................          (.1)               (.6)
                                                                   -------------------------------------
                                                                                                        
Adjusted net income................................................     $  625.6           $  520.5     
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Average number of common shares outstanding........................      1,092.1            1,101.1     
                                                                                                        
Contingently issuable shares.......................................          1.1                1.2     
                                                                   -------------------------------------
                                                                                                        
Adjusted average shares............................................      1,093.2            1,102.3     
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Basic earnings per share...........................................     $    .57           $    .47     
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DILUTED                                                                                                 
                                                                                                        
Net income.........................................................     $  625.7           $  521.1     
                                                                                                        
Preferred stock dividends..........................................          (.1)               (.6)
                                                                   -------------------------------------
                                                                                                        
Adjusted net income................................................     $  625.6           $  520.5     
                                                                   =====================================
                                                                                                        
Average number of common shares outstanding........................      1,092.1            1,101.1     
                                                                                                        
Incremental shares - stock options and                                                                  
   contingently issuable shares....................................         22.6               29.5     
                                                                   -------------------------------------
                                                                                                        
Adjusted average shares............................................      1,114.7            1,130.6     
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Diluted earnings per share.........................................     $    .56           $    .46     
                                                                   =====================================


Dollars in millions except per share data. Shares in millions.