Download - 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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