Eli Lilly and Company: Difference between revisions

[[File:Eli Lilly Corporate Center, Indianapolis, Indiana, USA.jpg|thumb|Eli Lilly and Company's Corporate Center in [[Indianapolis]], [[Indiana]] in 2019]]

During the 1970s and 1980s, Eli Lilly and Company saw a flurry of drug production: an antibiotic, [[Cefalexin|Keflex]], in 1971; a heart drug, [[Dobutamine|Dobutrex]], in 1977; Ceclor, which would become the world's top selling oral antibiotic, in 1979;{{Peacock inline|date=September 2020}} a [[leukemia]] drug, Eldisine; an antiarthritic, [[Benoxaprofen|Oraflex]]; and an analgesic, [[Dextropropoxyphene|Darvon]]. When generic drugs flooded the marketplace after the expiration of patents for drugs discovered in the 1950s and 1960s, Lilly diversified into other areas, most notably [[agrochemical|agricultural chemicals]], animal-health products, cosmetics, and medical instruments.

In 1971, the company became a component of the [[S&P 500 Index]].

To further diversify its product line, Lilly made an uncharacteristic, but ultimately profitable move in 1971, when it bought cosmetic manufacturer [[Elizabeth Arden, Inc.]] for $38 million. Although the subsidiary continued to lose money for five years after Lilly acquired it, executive management changes at Arden helped turn it into a financial success. By 1982 the subsidiary's "sales were up 90 percent from 1978, with profits doubling to nearly $30 million." Sixteen years after its acquisition, Lilly sold Arden to [[Fabergé (cosmetics)|Fabergé]] in 1987 for $657 million.

In 1977, Lilly ventured into medical instruments with the acquisition of IVAC Corporation, which manufactures vital signs and [[intravenous]] fluid infusion monitoring systems. Lilly also purchased Cardiac Pacemakers Incorporated, a manufacturer of [[Artificial pacemaker|heart pacemakers]] in 1977. In 1980, Lilly acquired Physio-Control Corporation. Other acquisitions included Advance Cardiovasular Systems Incorporated in 1984, Hybritech in 1986, and Devices for Vascular Intervention, Incorporated in 1989. Lilly acquired Pacific Biotech in 1990 and Origin Medsystems and Heart Rhythm Technologies, Incorporated in 1992. In the early 1990s, Lilly combined these medical equipment companies into a Medical Devices and Diagnostics Division that "contributed about 20 percent" of Lilly's annual revenues.

In 1989, a joint agri-chemical venture between Elanco Products Company and [[Dow Chemical]] created DowElanco. In 1997, Lilly sold its 40% share in the company to Dow Chemical for $1.2 billion and the name was changed to [[Dow AgroSciences]].

In 1994, Lilly acquired PCS Systems, a drug delivery business for Health Maintenance Organizations, and later added two similar organizations to its holdings. Lilly purchased PCS, which was the largest U.S. prescription drug benefits manager at the time, for $4 billion.

In 1991, Vaughn Bryson was named [[Chief executive officer|CEO]] of Eli Lilly and Company. During his 20-month tenure, the company reported its first quarterly loss as a publicly traded company. In 1993, [[Randall L. Tobias]], a vice-chairman of [[AT&T Corporation]] and Lilly board member, was named Lilly's chairman, president, and CEO after "product and competitive pressures" had "steadily eroded Lilly's stock price since early 1992." Tobias was the first president and CEO recruited from outside of the company. Under Tobias's leadership the company "cut costs and narrowed its mission". Lilly sold companies in its Medical Device and Diagnostics Division, expanded international sales, made new acquisitions, and funded additional research and product development. [[Sidney Taurel]], former chief operating officer of Lilly, was named CEO in 1998, replacing Tobias. Taurel was named chairman in January 1999. In 2000, Lilly reported $10.86 billion in net sales.

[[File:Eli Lilly global manufacturing plants.png|thumb|Eli Lilly's present day global manufacturing plants]]

In 1998, Lilly formed a joint venture with [[Icos|Icos Corporation]] (ICOS), a [[Bothell, Washington]]-based biotechnology company, to develop and commercialize [[Tadalafil|Cialis]], a product for the treatment of [[erectile dysfunction]]. In October 2006, Lilly announced its intention to acquire Icos for $2.1 billion, or $32 per share. After its initial attempt to acquire Icos failed under pressure from large institutional shareholders, Lilly revised its offer to $34 per share. Institutional Shareholder Services (ISS), a proxy advisory firm, advised Icos shareholders to reject the proposal as undervalued, but the buyout was approved by Icos shareholders and Lilly completed its acquisition of the company on 29 January 2007. Lilly closed Icos manufacturing operations, terminated nearly 500 Icos employees, and left 127 employees working at the biologics facility. In December 2007, CMC Biopharmaceuticals A/S (CMC), a [[Copenhagen]], [[Denmark]]-based provider of contract biomanufacturing services, bought the Bothell-based biologics facility from Lilly and retained the existing 127 employees.

In January 2009, the largest criminal [[fine (penalty)|fine]] in U.S. history, totaling $1.415 billion was imposed on Lilly for illegal marketing of its best-selling product, the [[atypical antipsychotic]] medication, [[Olanzapine|Zyprexa]].

In January 2011, [[Boehringer Ingelheim]] and Eli Lilly and Company announced their global agreement for the joint development and marketing of new APIs for diabetes therapy. Lilly could receive more than $1 billion for their work on the project, while Boehringer Ingelheim could receive more than $800 million from development of the new drugs. Oral anti-diabetic of Boehringer Ingelheim–[[Linagliptin]] and BI 10773–and two [[insulin analog]]s of Lilly–LY2605541 and LY2963016–were in phase II and III of clinical developmentat that time.

In April 2014, Lilly announced plans to buy [[Switzerland|Swiss]] drugmaker [[Novartis AG]]'s animal health business for $5.4 billion in cash to strengthen and diversify its Elanco unit. Lilly said it planned to fund the deal with about $3.4 billion of cash on hand and $2 billion of loans. As a condition of the acquisition, the [[Milbemycin oxime/lufenuron|Sentinel heartworm treatment]] would be divested to [[Virbac]] in order to avoid a monopoly in a subsector of the heartworm ([[Dirofilaria immitis]]) treatment market.

In March 2015, the company announced it would join [[Hanmi Pharmaceutical]] in developing and commercialising Hanmi's phase I [[Bruton's tyrosine kinase]] inhibitor [[HM71224]] in a deal which could yield $690 million. A day later the company announced another deal with China's Innovent Biologics to co-develop and commercialize at least three of Innovent's treatments over the next decade, in a deal which could generate up to $456 million; the collaboration was subsequently expanded in 2022, according to Innovent. As part of the deal the company will contribute its c-Met monoclonal antibody whilst Innovent will contribute a monoclonal antibody which targets [[CD20|CD-20]]. The second compound from Innovent is a preclinical immuno-oncology molecule. The following week the company announced it would restart its collaboration with [[Pfizer]] surrounding the Phase III trial of [[Tanezumab]]. Pfizer is expected to receive an upfront sum of $200 million from the company. In April 2015, the company engaged [[CBRE Group]] to sell its [[biomanufacturing]] facility in [[Vacaville, California]]. The facility resides on a {{convert|52|acre|km2}} campus and is one of the largest biopharmaceutical manufacturing centers in the United States.

In January 2017, Elanco Animal Health, a subsidiary of the company completed the acquisition of Boehringer Ingelheim Vetmedica, Inc's (a subsidiary of [[Boehringer Ingelheim]]) US feline, canine and rabies vaccines portfolio.

In March 2017, the company acquired CoLucid Pharmaceuticals for $960 million, specifically gaining the late clinical-stage migraine therapy candidate, [[lasmiditan]].

In August 2017, Lilly and [[Shionogi]] jointly licensed their product [[varespladib]] to [[Ophirex]] for the latter's novel [[snakebite]] treatment program.

In May 2018, the company acquired [[Armo Biosciences]] for $1.6 billion. Days later the company announced it would acquire [[Aurora kinase A]] inhibitor developer - AurKa Pharma - and control over the lead compound, [[AK-01]], for up to $575 million.

In January 2019, Lilly announced it would acquire Loxo Oncology for $235 per share—valuing the business at around $8 billion—significantly expanding the business's oncology offerings. The deal would give Lilly Loxo's oral [[Trk receptor|TRK]] inhibitor, [[Vitrakvi]] (larotrectinib), LOXO-292, an oral proto-[[oncogene]] [[receptor tyrosine kinase]] rearranged during transfection (RET) inhibitor, LOXO-305, an oral [[Bruton's tyrosine kinase]] (BTK) inhibitor and LOXO-195, a follow-on TRK inhibitor. In August 2019, Elanco acquired the Bayer animal health business for $7.6 billion.

In January 2020, the company announced its acquisition of Dermira for $1.1 billion, gaining control of two key assets, among others; [[lebrikizumab]] and [[glycopyrronium]] cloth used to treat [[hyperhidrosis]]. In June 2020, the company announced it had begun the world's first study of a potential [[Monoclonal antibody therapy|monoclonal antibody treatment]] for [[COVID-19]], with a Phase 1 trial of LY-CoV555, in collaboration with Vancouver-based company [[AbCellera]]. By August 2020, the challenging aspects of running a clinical trial in a long-term care facility during a pandemic prompted Lilly to create the first of many customized recreational vehicles into mobile research units (MRU) to meet people were they were and support mobile labs and clinical trial material preparation. A trailer truck could escort the MRU with supplies to create an on-site infusion clinic. Lilly deployed the mobile research unit fleet in response to outbreaks of the virus at long-term care facilities across the U.S. In September 2020, [[Amgen]] announced that they had partnered with Eli Lilly to manufacture their COVID-19 antibody therapies.

On 7 October 2020, Lilly announced that its cocktail was effective and that it had filed with the [[Food and Drug Administration]] for an [[emergency use authorization]] (EUA). This was the same day that rival company [[Regeneron Pharmaceuticals|Regeneron]] also filed for an EUA for its own monoclonal antibody treatment. In October 2020, Lilly announced it would acquire Disarm Therapeutics and its experimental treatments for axonal degeneration, via [[SARM1]] inhibitors, for $135 million (plus a further $1.225 billion based on regulatory and commercial milestones). In October 2020, Lilly announced that the National Institutes of Health (NIH) ACTIV-3 clinical trial evaluating its monoclonal antibody, [[bamlanivimab]] (LYCoV555), found that bamlanivimab was not effective in treating people hospitalized with COVID-19, however data showed bamlanivimab might have been effective in treating COVID-19 by reducing viral load, symptoms and the risk of hospitalization in outpatients. Other studies, including the NIH ACTIV-2 trial and its own BLAZE-1 trial, continued to evaluate bamlanivimab. In November 2020, the U.S. Food and Drug Administration issued an emergency use authorization (EUA) for the investigational monoclonal antibody therapy bamlanivimab for the treatment of mild-to-moderate COVID-19 in adult and pediatric patients. In December 2020, Lilly announced it would acquire Prevail Therapeutics Inc for $1 billion, boosting its pipeline in neurodegenerative disease gene therapies.

On 16 April 2021, the FDA revoked the emergency use authorization (EUA) that allowed and signaled FDA agreement for the investigational monoclonal antibody therapy bamlanivimab, when administered alone, to be used for the treatment of mild-to-moderate COVID-19 in adults and certain pediatric patients. 18 May 2021, the FDA had accepted Lilly's application for Tyvyt ([[sintilimab]]), in combination with Lilly's own Alimta ([[pemetrexed]]) and platinum chemotherapy for newly diagnosed nonsquamous non-small cell lung cancer. In July 2021, the company announced it would acquire Protomer Technologies for more than $1 billion.

In 2022, distribution of Lilly's [[COVID-19]] antibody drug was paused due to lack of efficacy against the emerging omicron variant. A second COVID-19 monoclonal antibody therapy ([[bebtelovimab]]) developed with [[AbCellera]] was given [[Emergency Use Authorization]] in February 2022, with the [[U.S. Government]] committing to a $720 million purchase of up to 600,000 doses. In October, the business announced it would acquire Akouos Inc. for $487 million upfront (a further $123 million deferred).

Also in 2022, in response to the reversal of [[Roe v. Wade]] brought on by the [[Dobbs v. Jackson Women's Health Organization|Dobbs]] decision, the state of Indiana went on to pass a near total ban on abortion. Eli Lilly said that this move would make it difficult to attract talent to the state and that it would be forced to look for "more employment growth" elsewhere.

Mounjaro ([[Tirzepatide]]) is a prescription medication that can help adults with type 2 diabetes control their blood sugar levels that was approved by the FDA in May 2022. It is also being studied for the treatment of obesity.

On 9 January 2023, Eli Lilly and TRexBio announced a collaboration and license agreement for three assets to treat [[Immune-mediated disease|immune-mediated diseases]]. TRexBio received an upfront payment of $55 million as part of this deal. In June the company announced it would acquire startup Emergence Therapeutics for an undisclosed sum and [[Sigilon Therapeutics]] for $300 million.

In July 2023, Eli Lilly announced it would acquire Versanis for $1.93 billion.