2. COMPANY
- Eli Lilly & Company
- Founded - 1876
- Industry – Pharmaceuticals
- Diabetes
- Bone/muscle/joint
- Cancer
- Neurodegeneration
- Immunology
- Endocrine
- Cardiovascular
- Pain
3.
4. ECONOMIC VIABILITY
• BENEFITS:
• THE DEVELOPMENT, PRODUCTION, AND SALE OF LIFE SAVING MEDICINES THAT AID IN THE BETTERMENT OF THE
QUALITY OF LIFE FOR PATIENTS IN MANY DIFFERENT THERAPEUTIC AREAS
• DAYS OF CORPORATE COMMUNITY SERVICE INITIATIVES AND SERVICE PROJECTS
• EMPLOYS OVER 12,000 EMPLOYEES IN INDIANA AND 40,000 WORLDWIDE
5. WHY ME?
• THIS ORGANIZATION HAS FOUND BENEFIT IN ME BECAUSE:
• MY UNIQUE PERSPECTIVE AND SKILL SET THAT I BRING INTO THE MANUFACTURING SPACE
• MY DRIVE AND DETERMINATION TO LEARN IN TOUGH SITUATIONS
• MY EXPERTISE WITH INFRASTRUCTURE SYSTEMS, KNOWLEDGE OF NETWORKS AND STRATEGIC PLANNING IN
THE TECHNICAL SPACE
• MY ABILITY TO REVIEW AND BALANCE BUDGETS, AND STREAMLINE FINANCIAL PROCESSES.
6. CURRENT VIEW
• ELI LILLY, BEING A PHARMACEUTICAL COMPANY IS EXTREMELY SENSITIVE TO THE EBBS AND FLOWS OF
THE ECONOMY. WE ARE DIRECTLY AFFECTED BY
• PRICE AND AVAILABILITY OF HEALTHCARE
• INCOME
• COST TO PRODUCE INSULIN
• COMPETITORS PRICES FOR INSULIN
iN OUR CURRENT CLIMATE, WHERE SO MANY PEOPLE ARE WITHOUT JOBS AND HEALTHCARE IS AT AN ALL TIME HIGH, WE FIND
ARE IN A BIND TO FIND NEWER MORE COST-EFFECTIVE WAYS TO PRODUICE INSULINE SO WE CAN REDUCE THE PRICE FOR
THOSE WITHOUT HEALTH CARE.
7. OLIGOPOLY
• ELI LILLY IS AN OLIGOPOLY
• ELI LILLY IS A MAJOR PLAYER IN THE GLOBAL MARKET FOR INSULIN (DIABETES MEDICATION)
• ELI LILLY, NOVO NORDISK, AND SANOFI AVENTIS CONTROL OVER 80% OF THE MARKET
• THESE THREE COMPANIES DETERMINE THE PRICES FOR INSULIN WHICH AFFECT THE REST OF THE MARKET.
• SOME HAVE CLAIMED THAT THESE COMPANIES ARE IN COLLUSION.
• THE PRICES HAVE BEEN BEEN ADJUSTING WITHIN THIS BIG 3 DUE TO THE NATURE OF OLIGOPOLIES AND MARKET
ADJUSTMENTS.
8. COMPETITORS
• LILLY HAS DIFFERENT COMPETITORS FOR DIFFERENT THERAPEUTIC AREAS
• THE MAJOR COMPETITORS ARE:
• PFIZER
• MERCK
• GLAXOSMITHKLINE (GSK)
• BRISTOL-MYERS SQUIBB
• SANOFI
• NOVO NORDISK
11. PRICING MODEL
• ELI LILLY’S MEDICINE PRICES FLUCTUATE BASED ON COST OF PRODUCTION
• PATIENT COSTS VARY BASED ON INSURANCE COVERAGE PERCENTAGES AND LIMITS.
• INSURANCE THROUGH EMPLOYERS
• PRIVATE INSURANCE
• MEDICARE
• MEDICAID
14. TRENDS AFFECTING LILLY
• LILLY AND ITS OPERATIONS ARE AFFECTED BY NUMEROUS TRENDS WITHIN THE ECONOMY
• GLOBAL RECESSION AND ECONOMIC GROWTH
• AUTOMATION, ROBOTICS, AND TECHNOLOGICAL ADVANCEMENTS
• RISE OF MORAL CAPITALISM (SEEKING TO MAXIMIZE SHAREHOLDER VALUE)
• GOVERNMENTAL POLICY MAKING AND REGULATIONS
• COMPETITIVENESS
• GLOBALIZATION
15. GLOBAL REACH
• APPROXIMATELY 34,000 EMPLOYEES WORLDWIDE
• CLINICAL RESEARCH CONDUCTED IN MORE THAN 55 COUNTRIES
• RESEARCH AND DEVELOPMENT FACILITIES IN 8 COUNTRIES
• MANUFACTURING PLANTS LOCATED IN 8 COUNTRIES
• UNITED STATES, SPAIN, ITALY, BRAZIL, EGYPT, CHINA, FRANCE, MEXICO, UNITED KINGDOM
• PRODUCTS MARKETED AND SOLD IN 120 COUNTRIES
19. FUTURE CHALLENGES
• AS THE ECONOMY CHANGES:
• PRICE FOR INSURANCE MAY GO UP
• INSULIN PRICES CONTINUE TO TREND UPWARD
• GENERIC BRANDS PROVIDE CHEAPER INSULIN PRICES
• GOVERNMENT REGULATION AND FDA RESTRICTIONS
• COMPETITORS ADVANCEMENTS IN MEDICAL SCIENCE