...Cymbalta Case Study Analysis Executive Summary Introduction: The Problem It’s April 2000 at Eli Lilly and Company where their flagship product Prozac is the leading brand of anti-depression medication and is set to expire in December 2003. Even though that is the official patent expiration date, no one within the company could be sure exactly how much time Prozac had left (Okef & Laufner, p.1). Patent expiration would mean that generic versions of the drug would flood the market and Prozac’s current $2 billion in annual sales would create a huge revenue gap (Okef & Laufner, p.1). John Kaiser, Marketing Director at Lilly is asked to give a presentation on a topic developing a successor to the now legendary anti depressant Prozac, which later on Kaiser titled “No Pain, No Gain.” He presented an overview of what depression is exactly and analyzed the effectiveness of Cymbalta comparing it to Prozac. After a four-and-a-half long marathon, some challenges and concerns were raised by some of the senior leaders of Lilly about their doubts that Cymbalta could in fact replace the leading brand. Strategic Planning In 1998, the New Antidepressant Team (NAT) was formed by two colleagues at Lilly: Mark Demitrack and Brett Schmidli, and later asked two other members Jim Lancaster and John Kaiser to join them based on their professional experience. The mission of the team was to find and develop a drug that would later replace Prozac. They quickly and efficiently narrowed...
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...patent, Eli Lilly has to decide regarding the future course of action of its next generation anti-depressant drug. In this case analysis, the company faces three critical decisions before NDA submission: 1) establish Cymbalta as efficacious for treating major depressive disorders (MDD) using once-a-day (QD) dosing, 2) pursue a separate pain indication in addition to submitting for an MDD using twice-daily (BID) dosing, and 3) delay submission until both issues were established. All of these options are complex and not without difficult trade-offs but based on market research of its customer segments and market potential, the best strategic option is to prove efficacy for treating MDD using QD and only after launch get FDA approval for treating pain. 1. FDA approval for once-a-day dosing for Cymbalta is more important to have at launch. First, Cymbalta is the successor to Prozac and with it carries the brand that creates this resonance in the mind of consumers (patients/physicians). This is a successful brand that patients trust, value and can identify with. With this brand, Lilly has established a perceptual positioning and differentiation from its competitors, and so as to introduce this next generation product for the first time for a different indication, Lilly could run the risk of losing their large customer base. Second, establishing efficacy for treating MDD using QD dosing is more promising than pursuing an indication for efficacy in treating pain for which the company has...
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...ADMN417 Assignment 2: Eli Lilly in India: Rethinking the Joint Venture Strategy Executive summary: Eli Lilly entered into a joint venture with Ranbaxy in India in 1992. A decade later both must decide whether this relationship remains mutual beneficial. Both companies have enjoyed a strong working relationship with identical value system as well as strong growth. Ranbaxy has become international and thus needs to concentrate more on generics and growth in US and UK; the joint venture with Eli Lilly no longer seems to be central to Ranbaxy’s current goals. With major changes in India’s regulation and patent protection, Eli Lilly can now enter the Indian market independently and soon would enjoy product patent protection. Dr. Lorenzo Tallarigo, president of Intercontinental Operations at Eli Lilly should end the joint venture with Ranbaxy in India. Eli Lilly will purchase all outstanding shares held by Ranbaxy at a fair market value, rebrand its name in India to simply Eli Lilly, and maintain current staff from the joint venture. The current operation from the previous joint venture should be maintained without any additional major changes since profits are already assured beyond 2005. Ranbaxy will be able to focus on the international markets with additional capital and Eli Lilly to continue growth in India. Problem statement: A decade after the formation of the joint venture, several changes have occurred in both the external environment as well as the expectation of...
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...that says “Eli Lilly.”. Inside, shelves overstuffed with bottles of medication and boxes of pills line the perimeter of the store. Colonel Eli Lilly is rolling pills in the back of the store, while his son takes the finished pills to dip in sugar. His wife is at the register, eagerly awaiting a customer. [thesis] Colonel Eli Lilly wasn’t expecting much when he opened his new business, as he was a man of many previous failures. He was born on July 8, 1838 on the...
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...1. Did Eli Lilly pursue the right strategy (i.e., should it have used a joint venture) to enter the Indian market? Why or why not? You should refer to Chapter 6 of the notes for guidance. With the upward trend of globalization, cross-border commercialization has become inherent in business strategies pursuing not only improved competitiveness but to avoid market share erosion. Expanding to new markets, reducing friction with socio-cultural and legal barriers, reduce capital costs, securing raw materials and implementing economies of scale are just a few motivations which to look abroad for and consider the intricacies of operating in another country. Changes in India’s economic policies from an import substitution to an export-driven one, was the legal foundation that allowed Eli Lilly to pursue its interest to market its drugs in India, where it already had relationships with local manufacturers to produce human or animal insulin for the Soviet Union market, but did not for the Indian market (Bartlett & Beamish, 2014, p. 524) The opportunity presented by Ranbaxy, the second largest pharmaceutical company in India, to supply certain active ingredients or intermediate products to formulate and complete Lilly’s, and for the Joint Venture (JV) to sell and distribute those products, was the perfect opportunity to enter a “new” market while sharing the costs and risks with a well-known and respected partner. With the then existing market conditions (Sales turnover caps, mandatory...
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...http://books.google.com/books?id=3JnBAgAAQBAJ&pg=PA195&lpg=PA195&dq=eli+lilly+overshot+the+insulin+market&source=bl&ots=G2D27Vgs_-&sig=anXMu7VjAyS0IVWOeGePofwnWSY&hl=en&sa=X&ei=KC01U_H9JMfuyQH1yIGwDQ&ved=0CDkQ6AEwAA#v=onepage&q=eli%20lilly%20overshot%20the%20insulin%20market&f=false Eli Lilly made a strategic decision to create Humulin for a number of reasons including problems with animal insulin, increased insulin usage, and decreased red meat consumption. In addition, competition in the insulin market historically was based on 2 factors, purity and "time profile". (Christensen, 2004) They may have overshot the market but I think it was the right decision. Although patients weren't looking for a new pure insulin and it took years for Humulin to gain traction it eventually accounted for 80% of ELC's insulin volume. Considering ELC had 85% of the North American insulin market this is a significant source of revenue for the company. (Christensen, 2004) Had ELC been complacent with animal insulin they would have left the door open for a competitor (Novo) or an upstart to create this new insulin first and eventually take market share from ELC. They may have cannibalized their own market in animal insulin in the process but they continued to maintain market share. Novo- Nordisk eventually introduced its own human insulin and along with Hoeschst they controlled the market. Since the cost of entry is so high due to clinical trials...
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...Pharmaceutical industry in the US and the current decline of the blockbuster products of Eli Lilly which were coming to an end of their life cycle, the company is in the process of developing three new products that plan to launch in 1996. A great number of factors such as decrease of the industry growth rate, steady decline of innovation, increasing competition from competitors, generic drug substitutes, government regulations and an ever increasing cost in manufacturing, R&D and quality protocols and processes have made the decision to launch new products into the market place a necessity and created a topic of debate within the management and leadership of the company. In response to these conditions, the management has established a company-wide initiative and goals to accomplish in the launching of their three new upcoming products. These goals were set up keeping in mind that the company wanted to bring new innovative products to their customers faster, cheaper and serving the needs of their customers. 1. Reduce manufacturing costs by 25%. 2. Reduce product development lead time by 50% as compared to the current lead time of 8 to 12 years. 3. Never Stock out – meet projected manufacturing demands. The dilemma facing this company and the upcoming challenge has given rise to a difficult decision by Steve Muller, Manager of Strategic Facilities and Planning at Eli Lily and Company. The decision was to decide on the type of manufacturing facility that will be used in...
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...Eli Lilly is a leading pharmaceutical company located in Indianapolis, Indiana, which specializes in treatment of several high profile diseases. Evista, a newly developed drug by Eli Lilly, is an estrogen replacement therapy medicine for prevention of osteoporosis which through testing has seemed to lower the incidence of breast cancer in women. This FDA approved drug is expected to be a potential blockbuster and generate revenue of 1 billion US dollars per year for the company. Pharmaceuticals is a highly competitive market and it is imperative for the leading companies to recuperate their development costs and generate returns for stockholders as well as fund research and development for potential new drugs at almost a constant rate. With the profitable lifetime for drugs, in United States, being significantly shortened since the 1980’s, Lilly Research Laboratories was able to develop Evista in a much shorter time period by adopting a Matrix-Based development approach and utilizing heavyweight teams. This strayed from their usual path of function-based product development strategy. With the possibility of profound profits from the commercialization of Evista, Dr. Gus Watanabe has to weigh whether the increasing internal resistance to heavyweight teams and shortage of resources is worth it. Watanabe needs to make a decision about adopting this new successful heavyweight team approach for commercialization of Evista as well as product development. Changes in the past few years...
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...Introduction In 2002, product leaders from the Biotech start-up ICOS, and Eli Lilly prepared to take a new erectile dysfunction medication to the market. Cialis would be positioned in a market which was currently dominated by Viagra, an erectile dysfunction medication that had been introduced by Pfizer in 1998. In the following case analysis, I will examine the process used by Lilly ICOS, LLC to bring Cialis to market. Utilizing the Harvard Business School Case “Product Team Cialis: Getting Ready to Market” I will point out certain facts surrounding the case, and highlight key issues. Alternative courses of action around bringing the product to market will be identified and evaluated. Finally, a recommended course of action for the company will be discussed. Facts Surrounding the Case At the time that Cialis was developed as an erectile dysfunction (ED) treatment, that landscape was being dominated by a single player. Viagra, developed by Pfizer, was released four years prior and enjoyed great success over the previous three years. Viagra, whose main ingredient is Sildenafil, was generating over $1 billion in sales for Pfizer year over year for the previous three years (Ofek, 2010). While Viagra was successful in its initial years in the initial market, it was not without its problems. Patient satisfaction with Viagra was below 50% in all markets with the exception of Germany and Italy. Viagra was only effective for hours post dosage, and was affected by the consumption...
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...MANAGEMENT OF TECHNOLOGY Case Brief on Eli Lilly: The Evista Project TIMELINE 4000-2000 BC – Ancient Egyptians developed compresses around Skull to stop migraines. 1876 – Eli Lilly founded in Indianapolis, Indiana by Colonel Eli Lilly. 1970s – Early research in Lilly on Serotonin. 1988 – Prozac launched to market 1991 – Serotonin “1f” receptor cloned by Lilly’s collaborator, Synaptic Pharmaceutical Corporation. CNS group starts screening serotonin like compounds from Lilly’s historical library 1992 – Glaxo launched sumatriptin (Imitrex) 1994 March/April “Hot” lead compound found from the screen with good fit at the serotonin 1f receptor Kaldor gives combinatorial chemistry seminar to an in-house audience at Lilly March/June Improvement upon this lead made using traditional chemistry September Sphinx acquired December Schaus presents seminar on his research to other CNS research group leaders 1995 – PTAC(Project Approval Committee) meets to discuss strategic choices in migraine project 2001 – Projected launch, if approved, of Lilly’s migraine product 2003 - Patent protection of Prozac ends What is a heavyweight project team and how does it differ from a traditional approach used for organizing development projects at Eli Lilly? A functional structure is a traditional approach found in most mature and larger companies where people are grouped in disciplines that work under a sub-function manager. The different subfunctions coordinate ideas through detailed specifications...
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...how many questions are given in each case) | | |each case) | | | |Submission deadline: JANUARY 4TH, 2014 | | |Submission to: ANHDANGLUCKY@GMAIL.COM | |ZENITH |What would you do to improve the reliability of the |What managerial and research problems that face Zenith?| | |market research, if you were the top management of the | | | |company? |Where could Zenith get the relevant information? | | |What would the best way be to discover the market |What would you do if you were Pearlman? | | |demand of the new product of Zenith? | | |GILLETTE |How was marketing planning conducted in Gillette and |If you were Bill Ryan, what would you do to make sure | | |what were the issues? |that the planning system physically fit what you | | |How was control conducted in Gillette and what were the|expect?...
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...Assignment 2 —Eli Lilly in India: Rethinking the Joint Venture Strategy Executive summary Eli Lilly entered the Indian market in a joint venture with Ranbaxy, in order to capitalize on increasingly favourable market conditions, low costs and to gain a foothold for entering other Asian markets. This move succeeded because of a commitment to values for the two partners, cooperation and excellent management. Ranbaxy smoothed the way with existing distribution networks, government contacts and local market knowledge. Lilly provided foreign expertise, competent managers and capital. The venture earned both firms significant advances in market share and earnings, and the relationship remained positive throughout. As the Indian economy has become increasingly liberalized and open to foreign investment, there is great potential in the market. Other foreign firms are entering the market, and as a well-established powerful player in the market Lilly no longer needs to use Ranbaxy as an intermediate. Lilly seeks continued, stable growth in the region and needs to consolidate and refocus its business in niche drugs to remain competitive in a changing global business environment. Ranbaxy wants to move away from generics to become a more internationalized and R&D based company like Lilly, but needs significant cash flow in order to grow abroad. Both firms are considering options for the future. Problem statement Eli Lilly-Ranbaxy, a joint venture in India...
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...Running head: ELI LILLY – DEVELOPING CYMBALTA CASE ANALYSIS 1 Week 4: Eli Libby – Developing Cymbalta Case Analysis Mary Juanita Hawkins University of Maryland University College Author Note This individual assignment was prepared for AMBA650, Section 9245, taught by Professor Philemon O. Oyewole. Introduction Eli Lilly and Company was established on May 10, 1876 in Indianapolis, IN and has been in business more than 132 years. The founder of this pharmaceutical company was Colonel Eli Lilly who was a union army member during the Civil War. This company deals with the development, discovery, sell, and manufacturer of drugs, such as Prozac and integrates supply-chain management within its departments. The first success that the company achieved was the coating of pills using gelatin. In 1923, the company marked another success by introducing Iletin that was used in improving diabetes. This project was the first largest insulin production that the company together with the University of Toronto invented. All through the 1950’s, various advancements were introduced such as the invention of the oral penicillin and the antibiotic known as Erythromycin. Prozac was produced in 1988 and latter succeeded in 1990. In 2000, the drug Zyprexa was utilized in the treatment of schizophrenia and later, the drug Gemzer was introduced for chemotherapy. Before Prozac the treatment available was Tofranil also known...
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...Eli Lilly: Developing Cymbalta Student: AMBA 650 University of Maryland University College January 31, 2012 Professor: Eli Lilly and company is a pharmaceutical company that has been in business since 1876. In 2000 their new antidepressant team (NAT) was tasked with identifying a suitable replacement for Prozac their most profitable antidepressant drug. Prozac’s patent was due to expire in December of 2003. The expiration of Prozac’s patent would allow other pharmaceutical companies to market their generic version of the drug at a lower price. There are four members of the members of the NAT John Kaiser the marketing director at Eli Lilly, Mark Demitrack a psychiatrist and co-leader of NAT, Brett Schmidli a project development expert and co-leader of NAT, and Jim Lancanster the Prozac expert. The NAT was tasked with discussing and evaluating what drug could be developed to elevate depression in its patients and serve as the predecessor to Prozac. The NAT begin its evaluation by focusing on Eli Lilly’s five assets. The five assets were drug products that could be developed into the predecessor. The NAT decided to conduct research on the five assets to determine, which one could be developed into its next flagship depression drug. Asset 1 is R-fluoxetine, which Eli Lilly entered into a licensing agreement with Sepracor to further develop and market this drug but clinical trial stopped due to patient inability to stomach the drug. Asset...
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...CASE 6-3 “Eli Lilly in India: Rethinking the Joint Venture Strategy” 1. I think Eli Lilly pursued the right strategy joining Ranbaxy Laboratories to enter the Indian market. While companies were using the global market to amortize the huge investments required to produce a new drug, they were hesitant to invest in countries where the intellectual property regime was weak. During the 1990s both companies had a strong reason for the joint venture. Ranbaxy wanted to make its presence globally and Lilly wanted to get their feet on Indian grounds. In 1992, Ranbaxy approached Lilly to investigate the possibility of supplying certain active ingredients or sourcing of intermediate products to Lilly in order to provide low cost sources of intermediate pharmaceutical ingredients. Based on the strategic alliance, Ranbaxy would supply certain products to the joint venture from its own portfolio that were currently being manufactured in India and then formulate and finish some of Lily’s products locally. From the beginning, both companies had a lot in common, they both believed in high ethical standards, technology and innovation, and future of patented products. They created the joint venture with $7.1 million capital and an initial subscribed equity capital of $3 million, with equal contribution from Lilly and Ranbaxy, leading to an equity ownership of 50 percent each. India, with an 800 million population had about 300 million of people that were considered to...
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