Eli Lilly and Company

Eli Lilly and Company
Type Public (NYSE: LLY)
Founded 1876
Headquarters Indianapolis, Indiana, USA
Key people Sidney Taurel, Chairman
John C. Lechleiter, President & CEO
Derica Rice, CFO
Eli Lilly, Founder
Industry Pharmaceuticals,
Healthcare
Products Prozac,
Humalog,
Cialis,
Strattera,
Darvocet
Market cap US$ 34.5 billion (Oct. 2008)
Revenue US$ 18.63 billion (2008)
Net income US$ 2.953 billion (2008)
Employees 40,600 (2007)
Website www.lilly.com

Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company and one of the world's largest corporations. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States. The company was founded in 1876 by a pharmaceutical chemist, Eli Lilly, after whom the company was ultimately named.

Contents

Company profile

A Fortune 500 corporation, Eli Lilly had revenues of $18.6 billion in 2007, making it the 148th largest company in the United States and the 10th largest corporation by global pharmaceutical sales. The company is publicly traded on the New York Stock Exchange and is a member of the S&P 500 stock index. Eli Lilly is one of the Nifty Fifty stocks that propelled the late 20th century bull market.

Eli Lilly and Company's global headquarters, in Indianapolis, Indiana, United States

Eli Lilly is a full member of the European Federation of Pharmaceutical Industries and Associations (EFPIA).[1]

History

Eli Lilly and Company grew from a tiny laboratory in Indianapolis in 1876 to one of the world's largest pharmaceutical companies.

Colonel Eli Lilly, a pharmacist who had served as a Union officer in the American Civil War, acquired a laboratory on Pearl Street in Indianapolis in 1876 and started Eli Lilly and Company. His innovative process of gelatin-coating pills helped establish the success of the company. When Eli Lilly died in 1898, his son Josiah K. Lilly Sr. took control of the company. Josiah inherited his father's civic mindedness and ordered the company to send much needed medicine to support recovery efforts following the 1906 San Francisco earthquake.

In 1919, Lilly hired biochemist George Henry Alexander Clowes as director of biochemical research. Clowes' negotiations with researchers who developed insulin at the University of Toronto helped launch the first successful large-scale production of insulin in 1923. The success of insulin enabled the company to attract well-respected scientists and, with them, make more medical advances.

Eli Lilly, the grandson of Col. Lilly, was named as the company's president in 1932. In 1934, the company made its first venture overseas when a Lilly office was opened in England. World War II brought production at Lilly to a new high with the manufacturing of Merthiolate and blood plasma. In 1943, the company began full-scale production of penicillin.

Eli Lilly International Corp. was formed in 1943 as a subsidiary to encourage business trade abroad. In 1945, the company opened a new plant on South Kentucky Avenue in Indianapolis and, by 1948, Lilly employed nearly 7,000 people. Also in 1948, Eli Lilly relinquished the presidency to his brother Josiah Lilly Jr. In 1952, the first public shares of stock were offered and, in 1953, Eugene N. Beesley was named president. He was the first non-family member to run the company.

In 1953 the Central Intelligence Agency gave Eli Lilly Company a $400,000 grant to manufacture and supply lysergic acid diethylamide (LSD) for the CIA. This was the first mass production of the chemical, and was used by a branch of the CIA known as MKULTRA.

Lilly continued to expand. In 1950, Tippecanoe Laboratories, in Lafayette, Indiana, increased antibiotic production with its patent on erythromycin. In 1954, Elanco Products Co. was formed for the production of veterinary pharmaceuticals. In 1963, with an acquisition from Distillers Company, the company established a major factory in Liverpool. In 1969, the company opened a new plant in Clinton, Indiana. In 1968, Lilly Research Centre Ltd. near London, England was built. It was the company's first research facility outside the United States.

Lilly made an uncharacteristic, but ultimately profitable, move in 1971 when it bought cosmetic manufacturer Elizabeth Arden for $38 million. Sixteen years later, Lilly sold Arden to Fabergé in 1987 for $657 million.

Richard Wood was named CEO of Lilly in 1973. During the 1970s and 1980s, Eli Lilly and Company saw a flurry of drug production: antibiotic Keflex in 1971; heart drug Dobutrex in 1977; Ceclor, which would become the world's top selling oral antibiotic, in 1979; leukemia drug Eldisine; antiarthritic Oraflex; and analgesic Darvon.

Lilly ventured into medical instruments through the acquisition of IVAC Corp., which manufactures vital signs and intravenous fluid infusion monitoring systems. Lilly also purchased Cardiac Pacemaker, a manufacturer of heart pacemakers.

In 1989, a joint agri-chemical venture between Elanco Products Co. and Dow Chemical created DowElanco. In 1997, Lilly sold its 40 percent share in the company to Dow Chemical for $1.6 billion.

In 1991, Vaughn Bryson was named CEO of Eli Lilly. During his 18-month tenure, the company reported its first quarterly loss ever. Randall L. Tobias, former vice-chairman of AT&T, was named Bryson's replacement in 1993. He was the first official recruited outside of the company. Sidney Taurel, former chief operating officer of Lilly was named CEO in 1998, replacing Tobias. Taurel was named chairman in January 1999.

In 1998, Eli Lilly formed a joint venture with ICOS Corporation, a Bothell, Washington based biotechnology company, to develop and commercialize Cialis for the treatment of erectile dysfunction. In October 2006, Eli Lilly announced its intention to acquire ICOS, for $2.1 billion, or $32 a share. The initial attempt to acquire ICOS failed under pressure from large institutional shareholders, causing Lilly to offer $34 per share. ISS, a proxy advisory firm, advised ICOS shareholders to reject the proposal as undervalued. However, the acquisition was approved by ICOS shareholders and Eli Lilly completed its acquisition of the company on January 29, 2007. Since ICOS had no other products in development beyond Cialis, Eli Lilly promptly closed ICOS operations and terminated nearly 500 ICOS employees, except for 127 employees working at the biologics facility. In December 2007, CMC Biopharmaceuticals A/S (CMC), a Copenhagen, Denmark-based provider of contract biomanufacturing services, bought the Bothell-based biologics facility from Eli Lilly and retained the existing 127 employees.

Collaborative Research

In addition to internal research and development activities Eli Lilly is also involved in publicly funded collaborative research projects, with other industrial and academic partners. One example in the area of non-clinical safety assessment is the InnoMed PredTox.[2][3] The company is expanding its activities in joint research projects within the framework of the Innovative Medicines Initiative of EFPIA and the European Commission.[4]

Pharmaceutical brands

Among the company's major pharmaceutical breakthroughs are cephalosporin, erythromycin, insulin, and Prozac (fluoxetine), a selective serotonin reuptake inhibitor (SSRI) for the treatment of clinical depression.

Among other distinctions, Lilly is the world's largest manufacturer and distributor of medications used in a broad range of psychiatric and mental health-related conditions, including clinical depression, generalized anxiety disorder, narcotic addiction, insomnia, bipolar disorder, schizophrenia, and others.

Cialis

Further information: Tadalafil

In 2003, Eli Lilly introduced Cialis (tadalafil), a competitor to Pfizer's blockbuster Viagra for erectile dysfunction. Cialis maintains an active period of 36 hours, causing it sometimes to be dubbed the "weekend pill". Cialis was developed in a partnership with biotechnology company ICOS. On December 18, 2006 Lilly bought ICOS in order to gain full control of the product.

With its television advertisement for Cialis during the 2004 Super Bowl Halftime Show, Eli Lilly was one of several companies whose costly 2004 Super Bowl Halftime advertisements were largely overshadowed by the Janet Jackson and Justin Timberlake Super Bowl XXXVIII halftime show controversy.

Cymbalta

Further information: Duloxetine

Another Lilly manufactured anti-depressant, Cymbalta, a serotonin-norepinephrine reuptake inhibitor used predominantly in the treatment of major depressive disorders and generalized anxiety disorder, ranks with Prozac as one of the most financially successful pharmaceuticals in industry history.

Gemzar

Further information: gemcitabine

In 1996, the FDA approved Gemzar for the treatment of pancreatic cancer. Gemzar is commonly used in the treatment of pancreatic cancer (usually in coordination with 5-FU chemotherapy and radiology). Gemzar also is routinely used in the treatment of non-small cell lung cancer.

Methadone

Further information: methadone

Eli Lilly was the first distributor of methadone, an analgesic used frequently in the treatment of heroin, opium and other opioid and narcotic drug addictions.

Prozac

Further information: Fluoxetine

Prozac has been a breakthrough therapy, and was one of the first therapies in its class to treat clinical depression by blocking the uptake of serotonin within the human brain. It is prescribed to more than fifty-four million people worldwide.

Prozac has given rise to a number of comparably-functioning therapies for the treatment of clinical depression and other central nervous system disorders such as obsessive compulsive disorder, bulimia nervosa, and panic disorders.

Prozac in popular culture

Because of its wide appeal as a popular anti-depressant, Prozac has had numerous references to it in popular culture, including many books, movies, and songs. The autobiographical book Prozac Nation was authored in 1994 by Elizabeth Wurtzel; it was turned into a movie of the same name, Prozac Nation, in 2001, starring Christina Ricci. A 1993 book, Listening to Prozac, was a generally critical look at Prozac and its side effects. Another book, Talking Back to Prozac, also focuses on Prozac side effects.

Secobarbital

Further information: Secobarbital

Eli Lilly has manufactured Secobarbital, a barbiturate derivative with anaesthetic, anticonvulsant, sedative and hypnotic properties. Lilly marketed Secobarbital under the brand name Seconal.

Secobarbital is indicated for the treatment of epilepsy, temporary insomnia and as a pre-operative medication to produce anaesthesia and anxiolysis in short surgical, diagnostic, or therapeutic procedures which are minimally painful. With the onset of new therapies for the treatment of these conditions, Secobarbital has been less utilized, and Lilly ceased manufacturing it in 2001.

Secobarbital overdoses

Secobarbital gained considerable attention during the 1970s, when it gained popularity as a recreational drug. On September 18, 1970, rock guitarist legend Jimi Hendrix died from a secobarbital overdose. On June 22, 1969 secobarbital overdose was the cause of death of actress Judy Garland. The drug was a central part of the plot of the hugely popular novel Valley of the Dolls by Jacqueline Susann in which three highly successful Hollywood women each fall victim, in various ways, to the drug. The novel was later released as a film by the same name.

Thimerosal

Further information: Thimerosal

Eli Lilly has developed the controversial vaccine preservative Thiomersal (also called Merthiolate). Thimerosal is effectual by causing susceptible bacteria to autolyze.

Additional Eli Lilly therapies

Personnel

A number of global leaders in the fields of health policy, management, and scientific research have worked at Lilly, including:

Prominent Lilly board members have included:

Accolades

In 2006, Fortune magazine named Eli Lilly and Company one of the top 100 companies in the United States for which to work. Also in 2006, Barron's Magazine named the company among the top 500 best managed companies in the U.S. The company was named one of the top 10 best companies for working mothers in 2004 by Working Mothers magazine.

Controversy

Main article: Eli Lilly Controversy

Eli Lilly has been involved in numerous controversies, including political and medical ethics controversies. For example, they withheld important information about the drug Zyprexa (Olanzapine).

Lawsuits

Further information: Standard Gravure shooting

In one of only three cases to ever go to trial for SSRI indication in suicide, Eli Lilly was caught corrupting the judicial process by making a deal with the plaintiff's attorney to throw the case, in part by not disclosing damaging evidence to the jury. The case, known as the Standard Gravure shooting involved a Kentucky man, Joseph Wesbecker, on Prozac, who went to his workplace and opened fire, killing seven people, and injuring 12 others before turning the gun on himself. The jury returned a 9-to-3 verdict in favor of Lilly. The judge, in the end, took the matter to the Kentucky Supreme Court, which found that "there was a serious lack of candor with the trial court and there may have been deception, bad faith conduct, abuse of judicial process and, perhaps even fraud." The judge later revoked the verdict and instead, recorded the case as settled. The value of the secret settlement deal has never been disclosed, but was reportedly "tremendous."

In June 2008, Eli Lilly and Co. agreed to settle a lawsuit stemming from discrimination charges. The lawsuit alleged that the company withheld severance pay in order to convince former employee, Starr E. Johnson, to withdraw her lawsuit. Eli Lilly was accused by the U.S. Equal Employment Opportunity Commission of violating the federal anti-discrimination law when they withheld severance benefits to Johnson. Johnson originally filed a discrimination charge after she was fired in 2005. She is a black woman and became disfigured in 1997 when she was exposed to a blood pathogen. Her charge claimed that her supervisor stated that he was put in charge "so that he could watch her and get rid of her and that no one liked looking at her." Eli Lilly was ordered to pay $54,400 in severance pay, $7,000 in interest and compensatory damages along with $3,000 in attorney fees.[5]

See also

References

  1. ↑ "The Pharmaceutical Industry in Figures - 2008 Edition" (in english), European Federation of Pharmaceutical Industries and Associations (EFPIA), pp. 49. Retrieved on 2008-08-25. 
  2. ↑ Mattes WB (2008), Public consortium efforts in toxicogenomics, Methods Mol Biol. 2008;460:221-38 [1]
  3. ↑ "InnoMed PredTox Member Organizations". Retrieved on 2008-08-25.
  4. ↑ Innovative Medicines Initiative. "IMI Call Topics 2008". IMI-GB-018v2-24042008-CallTopics.pdf. European Commission. Retrieved on 2008-08-25.
  5. ↑ Murphy, Tom (2008-06-30). ""Lilly agrees to settle discrimination lawsuit"". Chicago Tribune. Retrieved on 2008-07-01.

External links