Lilly (Eli) & Co
12 April 2002


THIS IS A NON REGULATORY ANNOUNCEMENT



Date: April 12, 2002


For Release:  FORMTEXT Immediately

Refer to: (317) 276-5795 - Terra L. Fox (Lilly)

(858) 550-7850 - Michael J. Watts (Ligand)






                     Lilly, Ligand Extend R&D Collaboration
           to Discover and Develop Novel Drugs for Metabolic Diseases

          Alliance Partners Provide Development Update on Portfolio of
      Potential Drugs for Diabetes, Cardiovascular Disorders and Obesity



Eli Lilly and Company (NYSE: LLY) and Ligand Pharmaceuticals Incorporated
(Nasdaq: LGND) will extend until November 2003 their research collaboration
focused on discovering novel drugs for type II diabetes, cardiovascular
disorders and obesity, the companies announced today.  Lilly retains rights to
extend the collaboration for two additional one-year terms.



The collaboration, which began in 1997, already has selected multiple clinical
candidates and advanced three peroxisome proliferation activated receptor (PPAR)
modulators into early clinical studies or to human development track.  PPARs are
a subfamily of intracellular receptors that regulate lipid and glucose
homeostasis, and that play a key role in fat tissue stores and metabolism, as
well as enhancing cellular responses to insulin.  One of these receptors (PPAR
g) is the target of currently marketed thiazolidinedione drugs.



"We are extremely pleased with the productivity of our collaboration with Ligand
and the value it is creating for both partners," said Jose F. Caro, M.D., vice
president of endocrine research and clinical investigation for Lilly.  "The
PPARs continue to be important drug targets for the treatment of diabetes and
cardiovascular diseases.  Our collaboration has proven over the past five years
that we can develop numerous high-quality clinical drug candidates, directed to
these targets, which may become the next generation of medicines to help
patients with metabolic diseases."



Under the terms of the collaboration, Ligand receives research funding from
Lilly.  Lilly is responsible for the development and registration of any
products resulting from the collaboration, and pays Ligand milestone payments as
products move through the development process.  Lilly has exclusive worldwide
marketing rights to products resulting from the research, and will pay Ligand
royalties on sales of products that make it to market.



"The Lilly-Ligand alliance has made extraordinary progress in the field of PPAR
modulators, targeting selectively the different receptor subtypes (g, a, d) or
developing co-agonists for different receptor pairs," said Andres Negro-Vilar,
M.D., Ph.D., Ligand's senior vice president for research and development and
chief scientific officer.  "We have developed a broad platform of molecules with
distinct receptor specificity and tissue selectivity, allowing us to bring to
the clinic molecules with enhanced activity and broader therapeutic profiles for
the treatment of type II diabetes, dyslipidemias and associated cardiovascular
disorders.  Lilly's expertise and leadership in these fields ensures leverage of
these approaches into multibillion-dollar markets."



LY818, Lilly's most advanced PPAR modulator for type II diabetes and metabolic
diseases, has successfully completed its first Phase I trial, which began in the
fourth quarter of 2001.  LY929, for type II diabetes, metabolic diseases and
dyslipidemias, is progressing through final preclinical studies toward a target
IND filing this quarter.  A third Lilly compound for dyslipidemias is advancing
toward a target IND filing in the fourth quarter of this year.



Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of best-in-class pharmaceutical products by applying the latest
research from its own worldwide laboratories and from collaborations with
eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly
provides answers - through medicines and information - for some of the world's
most urgent medical needs.  Additional information about Lilly is available at
www.lilly.com.



Ligand Pharmaceuticals Incorporated discovers, develops and markets new drugs
that address critical unmet medical needs of patients in the areas of cancer,
skin diseases, men's and women's hormone-related diseases, osteoporosis,
metabolic disorders, and cardiovascular and inflammatory diseases.  Ligand's
proprietary drug discovery and development programs are based on its leadership
position in gene transcription technology, primarily related to Intracellular
Receptors (IRs) and Signal Transducers and Activators of Transcription (STATs).





This news release contains certain forward-looking statements that involve risks
and uncertainties and reflect the companies' judgment as of the date of this
release.  These statements include those related to research productivity and
discoveries, clinical development, and milestone and royalty payments.  Actual
events or results may differ from our expectations.  There can be no assurance
that new drug compounds will be discovered, that clinical development will be
successful, that drugs will receive required regulatory approvals, or that they
will be successfully marketed.  Additional information concerning these and
other risk factors affecting Lilly and Ligand can be found in the companies'
prior press releases as well as in public periodic filings with the Securities
and Exchange Commission, available via the companies' internet sites.  Lilly and
Ligand disclaim any intent or obligation to update these forward-looking
statements beyond the date of this release.  This caution is made under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.



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