Lilly Outlines Its Strategy to Become the Pharmaceutical Growth Company of the Decade
Eli Lilly and Company will review with members of the investment community its strategic and operational plans for industry-leading long-term growth.
Growth Strategy
"Our growth strategy has been to either discover or collaborate with partners on drug candidates with best-in-class or first-in-class potential and make the investments necessary to maximize the value of those molecules," said Sidney Taurel, Lilly chairman, president and chief executive officer. "We have made tremendous progress on all fronts. Indeed, this strategy has positioned Eli Lilly and Company to become the pharmaceutical growth company of the decade."
Taurel will emphasize the following elements of the company's compelling growth strategy:
* The company's five newer products are generating outstanding growth and have significant growth potential through new indications and formulations and expansions into new markets.
* The company's late-stage pipeline is considered by many analysts to be the best in the industry with nine potential new products expected to be launched over the next three years.
* The drug candidates in the company's early-stage pipeline are equally interesting, high-potential molecules that are expected to help fuel strong, sustainable growth during the middle of the decade and beyond.
* The company has exceptional R&D capabilities that are the most productive in the industry.
* To capitalize on current and new products, the company is aggressively building its sales and marketing capabilities and investing in a significant sales force expansion.
* The company's commitment to building top partnering skills is helping to attract many exciting molecules that are selectively strengthening the pipeline.
Product Outlook
"Excluding Prozac®, our underlying performance has been outstanding. Year-to-date, our five newer growth products - Zyprexa®, Gemzar®, Actos®, Humalog®, Evista® - grew 38 percent, and, along with several line extensions, will be an important part of future growth," said Gerhard N. Mayr, executive vice president, pharmaceutical operations, for Lilly. "The revitalization of our sales and marketing capabilities has led to some recent successes, such as the strong Zyprexa performance in the face of new competition in the U.S. We will further invest in sales and marketing to help realize the tremendous growth potential of the current and expected products."
Mayr will highlight several sales and marketing initiatives the company will implement to drive current product growth and successful new product launches, including an aggressive plan of:
* Adding more than 5,000 additional sales representatives worldwide over the next three years. When combined with the 4,000 representatives added in the past two years, Lilly's global sales force will have doubled during the five-year period from early 2000 through 2004.
* Nearly doubling underlying sales and marketing spend between 1999 and 2003.
* Investing in several new indications and formulations for certain growth products, each of which is on track for launch or submission during the next several years. These include the Zyprexa IntraMuscular and long-acting depot formulations as well as the bipolar depression, psychosis and bipolar maintenance indications. New indications being pursued for Gemzar include treatment of breast and ovarian cancers and, for Evista, prevention of breast cancer and cardiovascular disease.
Other news from the department business & finance
Get the life science industry in your inbox
From now on, don't miss a thing: Our newsletter for biotechnology, pharma and life sciences brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
