eli lilly final

7/27/2019 Eli Lilly Final

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Eli Lilly: Recreating Drug Discovery for the 21st

Century

Presented By:Gayatri

GiriShanker

HemanthHima

Harita

Indulekha

Jaydevan

Jyothilakshmi

Karthik

Keerthi Ashok

Keerthi Chandran


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Parent Company Eli Lilly & Co

Founded 1876

Category Pharmaceutical & chemical

Tagline/ Slogan Transforming challenges inadvances

USP Lilly makes medicines that helppeople live longer, healthier, moreactive lives

Annual revenue 24.8 billion


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VISION It has a more sophisticated and complex business facing

environmental pressures.

Drawing scientific, technical and business expertise to serve

patients, meet the community's needs and reduce our environmentalfootprint.

Developing collaborative, strategic initiatives that both serve society

and enhance business performance

Aligning the business with pressing social needs opens up newopportunities to provide greater value to people around the world.

A special focus on improving the health of underserved people in

low- and middle-income countries around the globe through The

Lilly Global Health Innovation Campaign


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To improve global health by helping expand access to

medicines, by working to strengthen policies that foster better

health

Collaborating with governments and other stakeholders builds

trust and reinforces the mutual interest in bringing value to

patients and society

Launch of Lilly Pad, a blog that focuses on public policy

issues, such as health and wellness, innovation, and job

creation, as well as our corporate responsibility initiatives and

advocacy efforts.


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ACCOMPLISHMENTOF VISION

We will leadthe industry by


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LEAD ON VALUES AND BRAND

Build relationships with all key constituentspatients, payers,physicians, regulatorsto understand what they value

Deliver quality, innovative medicines that improve individual

patient outcomes. Tailor medicines for the right patient, delivered inthe right dose and at the right time.

Build upon our expertise in therapeutic areaswhich today are

neuroscience, endocrine, oncology, and cardiovascularand seizeopportunities in other areas.

Combine our deep therapeutic expertise with both our small-molecule

and biotechnology capabilities.


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Create and integrate external networks to access molecules, capabilities and

capacity. Demonstrate the value of our products in ways that are meaningful toour customers.

Earn the trust and respect of everyone we touch by the way we operate our

business and our commitment to patients and society.

Influence our environment to reward innovation.

Hire and develop leaders who are motivated to make a difference in the lives of

patients.

Create an agile organization and a culture of inclusion to access the best

ideas and capabilities and to reflect the diversity of the patients we serve.

Execute better than our competitors.


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TARGETED THERAPEUTICS Focus on high value niche products

Targeting therapies to specific subpopulation of patients

and capturing those niche opportunities with highlyeffective products

Relationship with diagnostic companies

Presented idea as a part of executive program-Leading in

Lilly and in a series of town hall style talks DVD made available on companys intranet


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FIPCO vs TARGETED THERAPEUTIC

MODELConventional FIPCO Targeted Therapeutic FIPCO

1. Large patient populations 1. Targeted patient populations

2. One size fits all products 2. Customized treatment

3. Few large products generate majority

of revenue

3. Many equally sized products generate

most revenue

4. Mid-sized R&D portfolio 4. Large R&D portfolio

5. Dedicated manufacturing focused on

few, high volume products

5. Highly flexible manufacturing

capability

6. Primary care large sales force 6. Specialty, technical, smaller sales force


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TAILORED THERAPEUTICS

Can narrow the target population of patients, tighten up

dosing guidance based on various criteria, address the

timing of therapy, or provide better information to

patients

Insulin


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TAILORING SCENARIOS

Tailoring Drug Engineering therapies with a specific patient

sub population in mind

Identifying Patient best suited

for drug

Identifying those patients for whom benefits

outweigh risks

Tailoring Dose Optimizing dosing regimen for patient

subpopulation to achieve optimal benefit/risk

Tailoring Time Identify the time to intervene during disease

progression, the time to complete therapy, or

time to alter treatment

Tailoring Information/Tools Accommodate information for patient diversity,

questions specific to prayers or providers, or

provide tools to meet needs of customers.


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Tailored based patient characterization Quintile 1

Descriptors, preferences, behaviour, Attitudes

Quintile 2 Patient preference, Progression of the disease, Biochemical

markers,

Quintile 3

Risk prediction tools, outliers identified, Clinical studies,Differentiation can be important


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Quintile 4

Multiple target exists, Phenotypic analysis, Individualized

dosing

Quintile 5 Predictable health outcomes, existing polymorphism which

defines disease or risk of disease, well defined disease

phenotype


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BUILDING CAPABILITIES Lillys organizational structure was fundamentally functional,

with research and development structured as a tightly

integrated matrix.

Lilly also set aside roughly $100 million to develop the new

capabilities needed to support the tailored therapeutics strategy.

They identified and build capabilities in the given areas:

R & D

Sales and Marketing

Manufacturing


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RESEARCH AND DEVELOPMENT

A cross functional Tailored Therapeutics Review Panel foridentifying and overseeing the building of capabilities within LRL .

Integrative informatics and diagnostics were identified as the twocapabilities that most needed to build.

INTEGRATIVE INFORMATICS

Entailed pulling together data generated across various functions andattempting to use it to generate hypotheses as to where tailoring

could be applied. A tailored therapeutics workbench described as a visualization tool,

was designed to help people think about how to look at data acrossmedical, pharmakinetics and discovery, to observe trends, andgenerate hypotheses.


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Having access to this information across the value chain

enabled to generate better hypotheses, and to understand

diseases and how patients react to certain drugs.

It had limited development and no diagnostic commercial

experience.

Company had fee-for-service arrangements with a wide range

of companies including small biotechs and large diagnostic

companies.


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Gaps that had been identified with regard to the companys

diagnostic capabilities included:Diagnostic partnerships that provided a virtual capacity

Internal legal diagnostic IP core competency and

awareness of how phase-appropriate IP and asset protection

strategies impacted options for diagnostic development

Stored/banked tissue specimens required to expedite

diagnostic registration in late phase drug development

Resources required for functional support, esp. legal

Lilly continued to build upon its existing biomarker

capability


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Sales and Marketing

The central sales and marketing is responsible for

planning of new product.

Marketing and sales messages would be less about how atailored therapeutic is better than competing products.

Marketing organization tries to find more and better ways

to integrate with developed organization.


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MANUFACTURING

Flexibility is the key capability that Lilly needs to possess

when it comes to manufacturing.

Manufacturing requirements is less predictable than theywere under the traditional FIPCO model.


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STAKEHOLDER CHALLENGES

Patients

Patients Compliance.

value proposition offered by targeted medicine, ensuringthat patients took their medications

Collaboration among companies, providers, payers, and thegovernment


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Providers Education is needed on how targeted therapies could

work on smaller patient populations

Ensure that clinical information systems would be able toaccommodate personal medicines increased data and

networking demands.

Prepared to either provide these services, which would

require additional staffing, or to outsource them.


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Payers

Significant roadblock for both the development and

use of targeted medicines due to the fact that

reimbursement procedures were geared toward theone-size-fits-all blockbuster model.

Inadequate reimbursement was a key reason why

companies were not developing diagnostic products.

Payers pertained to patient data.


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Diagnostic Firms Diagnostic companies put themselves at financial risk by

developing a diagnostic for a drug that was years awayfrom market approval, assuming it won approval.

Development cycle times and the costs for drugs and

diagnostics were quite different: 10-13 years for a drug at

a cost of $1 billion compared to 1 to 2 years for adiagnostic at a cost of $1 million to $2 million.


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Regulatory Body

Many players in the industry complained that the agencysapproval procedures had not kept up with the

advancement of drug development.


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Pharmaceutical Companies

Greater collaboration and sharing of information

throughout the industry. Transparency around clinical trials in pharma was a right

step.

Disclosing clinical trials helped to learn from each others

work and to improve their credibility.


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Five Forces Model Competitive Force 1: Rivalry among existing firms.

Eli Lilly (Lilly) is a leader in a somewhat competitive pharmaceutical industry. Major competitors are Pfizer Inc., GlaxoSmithKline PLC, and Novo Nordisk

A/S.

Competition in this industry is primarily based on product differentiation. Theexit barriers in the pharmaceutical industry are very high which makes thisindustry that much more competitive.

Lilly is a very specialized company, focusing solely on pharmaceuticals.

Competitive Force 2: Threat of New Entrants

The threat of new entrants into this highly specialized industry is very low.

There is a big first mover advantage for those companies such as Lilly that have

been in the industry a long time and have a big investment in research anddevelopment built up.

There is a very steep learning curve in the pharmaceutical industry which alsoprevents competitors from entering the market.


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Competitive Force 3: Threat of Substitute Products.

In the pharmaceutical industry there is a somewhat substantial degree ofproduct substitution with many drugs being offered to treat the same illness.

The threat of substation lies not with the end user, but with the doctor that

prescribes the medication.

Drug companies such as Lilly spend a great deal of resources to send out

drug reps. to inform doctors of new drugs on the market. In order to have an advantage over its competitors a drug company has to

spend extensive amounts of money on research and development costs, as

well as marketing in order to discover and sell new and innovative drugs.

The drugs ability to successfully cure whatever illness it is designed to

cure is the basis of the industry. Therefore, the company that comesout with the best drug will have a considerable share of the market forcuring that particular illness for as many years as it has a patent on thatdrug.


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Competitive Force 4: Bargaining Power of Buyers. The bargaining power of buyers is intermediate in the pharmaceutical markets the

same holds true for Lilly and Co.

Two elements of bargaining power of buyers are price sensitivity and relative

bargaining power.

Buyers are less sensitive to price because Lilly produces some drugs that have nosubstitutes and are not replicated in the generic drug markets.

Competitive Force 5: Bargaining Power of Suppliers.

The bargaining power of suppliers is low because there are many drug suppliersthat produce generic compounds that are used in a great number of

pharmaceutical products.

Lilly purchases large quantities chemicals and chemical compounds many of

which are used in more than one type of drug.


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SWOT ANALYSISSTRENGTHS

Strong capability to create strategicalliances & marketing partnerships with

other corporations

Strong marketing ability

Well developed in house R&D capability

Global footprint & ability to sell drugs all

over the world

They employ more than 7000 people in

LRL spanning 50 countries

Worldwide product availability

WEAKNESS

Loss of patents in US & other major

market affects performance

Drop sales because of new generic

products

Eli Lilly has captured fragmented market

shares which prevents it from becoming

market leader

OPPORTUNITIES

Improvement global living standards

Increasing awareness about healthcare

needs

Global societies growing older

THREATS

Over the years there is considerable

increase in generic

Economic slow down

Increased hurdles for drug discovery &

development


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eli lilly final

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