Eli Lilly and Company: Case Study
About the Company
Eli Lilly and Company is a US-based pharmaceutical corporation with its head office in Indianapolis, Indiana. Eli Lilly has business offices in eighteen nations worldwide, and the company sells its manufactured goods in around 125 nations.
When was Eli Lilly set up?
The pharmaceutical giant came into existence in 1876, one hundred and forty-six years back.
Who is the founder of Eli Lilly?
The originator of the firm is Colonel Eli Lilly. He was an American Civil War veteran and pharmacist, and the company has been named after him.
What type of company is Eli Lilly?
Eli Lilly is a publicly-traded company.
To which industry does it belong?
Eli Lilly belongs to the pharmaceutical industry.
Where is the head office of the firm located?
The central office of the firm is situated in Indianapolis, Indiana.
What products does Eli Lilly manufacture?
Eli Lilly manufactures pharmaceutical drugs.
Which firm is the most significant stakeholder of Eli Lilly?
Eli Lilly and Co’s most significant stakeholder is Lilly Endowment, which enjoys an 11.3% stake in the company.
How many employees work for Eli Lilly?
As of 2021, the company has a formidable workforce of 35,000 people.
Eli Lilly Management
David A. Ricks (Chairman & Chief Executive Officer)
Dave Ricks serves as the chief executive officer and chairman of Eli Lilly and Company. He has been a Lilly warhorse for over two and a half decades and is seasoned in sales, marketing, overseas operations, and drug design. Ricks was appointed as CEO in January 2017 and was chosen chairman of the firm’s board of directors in June 2017.
From 2012 to 2016, Ricks was the president of Lilly Bio-Medicines. He headed Lilly USA, the most prominent associate of the firm, in the role of president from 2009-2012.
Before that, Ricks was in different overseas senior management positions for almost eight years. Dave was the general manager and president of Lilly China, running in one of the most promising and flourishing markets in the world from 2008-2009. From 2005 to 2008, he headed Lilly Canada in the general manager position, following berths as national sales director and director of pharma marketing in that nation. Ricks became a part of Eli in 1996 as a business development affiliate and occupied various leadership positions in the United States sales and marketing segment before shifting to Lilly Canada.
Ricks earned a B.Sc degree in 1990 from Purdue University and secured an MBA in 1996 from Indiana University.
Rick forms a part of the board of directors of Adobe. He is the instant previous chairman of the board of directors of PhRMA (the Pharmaceutical Research and Manufacturers of America). Dave is an affiliate of the following:
- The Business Council
- CEO Steering Committee of the International Federation of Pharmaceutical Manufacturers & Association
- The U.S. Patent and Trademark Office’s Council for Inclusive Innovation.
- Business Roundtable
Near his residence, Ricks dynamically participates in the growth and welfare of the Central Indiana region. Dave is a part of the Board of Directors of the Central Indiana Corporate Partnership, and he is also there on the board of governors of Riley Children’s Foundation.
Anat Ashkenazi (CFO and Executive Vice President)
Anat Ashkenazi serves as the chief financial officer and executive vice president for Eli Lilly and Company.
In 2001, since getting her appointment from Eli Lilly, Ashkenazi occupied various positions in finance, planning, and Six Sigma. Of late, Anat worked as the controller, senior vice president, and Chief Financial Officer of Lilly Research Laboratories. While holding this position, she supervised the Chief Financial Officers of the commercial enterprises of the firm, together with those for production, R&D, G&A operations, and quality control. Besides, she headed the business renovation bureau, and business strategic planning group and worked as Chief Financial Officer for various segments of the firm’s worldwide trade. Before joining Eli, Anat served in financial services at Ha’poalim Bank and Standard & Poor’s Ma’alot in Israel.
Presently, Ashkenazi is part of the Maravai Life Sciences board of directors. Earlier, she was a part of the board of directors of Varian Medical Systems, a market stalwart in actinotherapy.
Ashkenazi attained a bachelor’s degree in finance and economics from the Hebrew University and also has an MBA degree from Tel Aviv University.
What are the most well-known drugs of Eli Lilly?
As of 2022, the company is famous for the following medications:
- Cymbalta (duloxetine), a medication used for clinical depression (launched in 2004)
- Prozac (fluoxetine), a medication used for clinical depression (launched in 1986)
- Zyprexa (olanzapine), its antipsychotic drug (introduced in 1996)
However, the principal revenue generators of Eli are Trulicity (dulaglutide, launched in 2014) and Humalog (insulin lispro, introduced in 1996), both diabetes medications.
What are the key feats achieved by Eli Lilly?
Eli Lilly’s feats comprise the oldest pharmaceutical firm to manufacture insulin and the polio vaccine formulated by Jonas Salk at a bulk scale. Eli was one of the oldest pharmaceutical corporations to develop human insulin utilizing recombinant DNA comprising:
- Humalog (insulin lispro)
- Humulin (insulin medication)
- Basaglar (insulin glargine) – the oldest sanctioned biosimilar insulin item in the United States.
What are the major pharmaceutical brands of Eli Lilly?
The key pharmaceutical brands under the company are listed below:
- Cymbalta (antidepressant)
- Cialis (for erectile dysfunction)
- Methadone (analgesic)
- Secobarbital (barbiturate derivative)
- Prozac (antidepressant)
- Zyprexa (for bipolar disorder and schizophrenia)
- Thiomersal (vaccine compound, also known as thimerosal and Merthiolate)
Rankings
As of 1997, Eli Lilly was the biggest conglomerate and also the biggest benevolent patron in the Indiana region. The firm achieved the 123rd rank on the Fortune 500 list in 2019. Eli achieved the 221st rank on the Forbes Global 2000 among the biggest publicly-traded corporations in the world and the 252nd rank on the Forbes list of USA’s Best Employers. The company is a complete affiliate of the European Federation of Pharmaceutical Industries and Associations and the Pharmaceutical Research and Manufacturers of America.
What are the controversies that rocked Eli Lilly?
- BGH (bovine growth hormone) – This happened in August 2008. There were disputes related to human health concerns and animal ethics.
- 340B Drug Pricing Program – Took place in 2021. Eli stopped selling 340B medications to contracted pharmacies other than insulin at discounted rates, leading to a conflict with hospitals.
- Prozac – The Standard Gravure shooting took place on September 14, 1989. Joseph T. Wesbecker shot eight persons dead and wounded 12 before committing suicide. His kin and injured parties blamed his deed on the Prozac drug Joseph had commenced consuming a month before. There were mass protests and a series of lawsuits. Attorneys started taking Prozac to vindicate the odd conduct of their clients. There were charges against Eli Lilly that it didn’t do what was expected of it to make physicians and patients aware of the unfavorable upshots of the medication. The connection between the use of antidepressants and suicide has always been controversial.
- Illegal promotion of Zyprexa – Eli pleaded guilty in 2009 to the illegitimate promotion of Zyprexa. It consented to payment of a fine worth U.S. $1.415 billion that incorporated a criminal penalty worth U.S. $515 million, the biggest in a healthcare lawsuit of all time. It was also the biggest criminal penalty for a single company in a United States prosecution.
- Bias – In March 2021, there were charges against Eli Lilly and Company of sexual bias leveled by an erstwhile campaigner who alleged she was compelled to do her job in a sexually offensive workplace. The parties to the complaint arrived at a settlement for an unrevealed sum in June 2021.
- Canada patent legal suit – In September 2013, the company litigated against Canada for infringing its commitments to overseas venture capitalists as laid down by the North American Free Trade Agreement by permitting its courts to annul patents for Zyprexa and Straterra. Courts in Canada observed that the 7-week extensive research of 22 patients by Straterra was extremely brief and quite tapered to be eligible for the patent. The patent for Zyprexa was annulled since it had not attained its pledged efficacy. The firm asked for compensation to the tune of U.S. $500 million for loss of income. They eventually ended up losing the suit in 2017.
- Unlawful promotion of Evista – Evista is a drug normally utilized to stop and cure osteoporosis in postmenopausal females. In December 2005, Eli Lilly and Company consented to admit responsibility and paid U.S. $36 million concerning the illegitimate marketing of the medication.
- Pricing of insulin – In January 2019, legislators from the U.S. House of Representatives communicated with Eli Lilly and Company and other insulin makers, questioning them for clarifications regarding their speedily hiking insulin rates. The yearly expenditure of insulin for patients with type 1 diabetes in America increased around twofold to U.S. $5,700 from U.S. $2,900 during 2012-2016.
- Dobbs and abortion law – In reply to the turnaround of Roe v. Wade induced by the Dobbs verdict, Indiana State proceeded to promulgate an almost complete prohibition on open abortion. The company stated that this step would create hindrances in drawing skills to the state and that there would be a compulsion to search for “additional job increase” somewhere else.
Eli Lilly stock performance
The common stocks of Eli are traded on the New York Stock Exchange (NYSE) with the ticker symbol LLY. The stocks are constituents of the indices given below:
- Standard & Poor 100
- Standard & Poor 500
On October 7, 2022, Eli Lilly (LLY) closed trading at U.S. $326.66 with the data provided below at 4:04 pm Eastern Daylight Time (EDT).
Stock chart
| Day’s Open | US $332.97 |
| Previous Close | US $332.95 |
| Intraday High | US $333.07 |
| Intraday Low | US $324.90 |
| 52-week Range | US $231.87-341.70 |
| 1-day change | -6.29 (-1.89%) |
| Price (Closing) | US $326.66 |
| Volume traded | 2,601,643 |
| Ask | 341.70 x 1100 |
| Bid | 305.00 x 1200 |
| Average volume | 2,787,215 |
| Earnings Per Share (Trailing 12 Months) | US $6.27 |
| Market capitalization | US $310.384 Billion |
| Price Earning Ratio (Trailing 12 Months) | 52.10 |
| Earnings date | November 1, 2022 |
| One-year target estimate | Not available |
| Beta (5Year Monthly) | 0.33 |
| Ex-dividend date | August 12, 2022 |
| Forward dividend and yield | 3.92 (1.18%) |
Eli Lilly Financials at a glance
| Operating income | ↑ US $6.36 billion (2021) |
| Net income | ↓US $5.58 billion (2021) |
| Total equity | ↑ US $8.98 billion (2021) |
| Total assets | ↑ US $48.81 billion (2021) |
| Revenue | ↑ US $28.32 billion (2021) |
Philanthropy – Eli Lilly and Company Foundation
This foundation is in no way related to the Lilly Endowment foundation and runs as a tax-free personal benevolent institution that the firm set up in 1968. The Eli Lilly and Company Foundation is financed via the corporate gains of Eli.
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