Eli Lilly and Company

For other uses, see Eli Lilly (disambiguation).

Eli Lilly and Company

Type	Public
Traded as	NYSE: LLY S&P 500 Component
Industry	Pharmaceuticals
Founded	1876 (1876)
Founder	Eli Lilly
Headquarters	Indianapolis, Indiana, United States
Key people	John C. Lechleiter (Chairman, President and CEO)
Products	Drugs
Revenue	US$ 23.113 billion (2013)
Operating income	US$ 5.889 billion (2013)
Net income	US$ 4.685 billion (2013)
Total assets	US$ 35.249 billion (2013)
Total equity	US$ 17.641 billion (2013)
Number of employees	37,925 (December 2013)
Website	Lilly.com

Eli Lilly and Company is an American global pharmaceutical company with headquarters located in Indianapolis, Indiana, in the United States. The company also has offices in Puerto Rico and 17 other countries. Their products are sold in approximately 125 countries. The company was founded in 1876 by Col. Eli Lilly, a pharmaceutical chemist and veteran of the American Civil War, after whom the company was named.

Among other specialties, Lilly was the first company to mass-produce penicillin, the Salk polio vaccine, and insulin, including one of the first pharmaceutical companies to produce human insulin using recombinant DNA. Lilly is also the world's largest manufacturer and distributor of psychiatric medications.

In 2009, Eli Lilly pleaded guilty to illegally marketing the drug Zyprexa for off-label uses not approved by the U.S. Food and Drug Administration, particularly the treatment of dementia in the elderly. The company paid a $515 million criminal fine, at the time the largest in history.

Company profile

Eli Lilly and Company's global headquarters, in Indianapolis, Indiana, United States

A Fortune 500 corporation, Eli Lilly had revenues of $20 billion in 2008, making it the 148th largest company in the United States and the 10th largest corporation by global pharmaceutical sales. The company is publicly traded on the New York Stock Exchange and is a member of the S&P 500 stock index. Eli Lilly was one of the Nifty Fifty stocks that propelled the mid 20th century bull market.

Eli Lilly is a full member of the European Federation of Pharmaceutical Industries and Associations (EFPIA).

History

Company founder

Main article: Eli Lilly

The company's founder was Colonel Eli Lilly, a pharmaceutical chemist and Union Army veteran of the American Civil War. Col. Lilly served as the company president until his death in 1898.

A stylized version of his signature still appears in the company's red logo. After he mustered out of the Union army, Lilly briefly became a cotton planter in Mississippi, but the venture failed and he returned to the Midwest, where he was a partner in a Paris, Illinois, drugstore. Lilly began formulating plans to create a medical wholesale company while working in partnership at the Binford and Lilly drug store in Illinois.

Colonel Eli Lilly (1838–1898), founder

Early days: 1870s–1900

The first Lilly location in Indianapolis was a small, two-story brick building on Pearl Street. In his first year of business, sales reached $4,470. At the end of 1877 sales reached $11,318. The company outgrew its first location and moved twice in the next four years until it settled in 1881 on property at McCarty Street in Indianapolis's south-side industrial area. Lilly later purchased additional facilities for research and production.

From its facilities in Indianapolis the company manufactured and sold "ethical drugs" for use by the medical profession. Lilly's medicines included labels that disclosed product ingredients. Lilly's first innovation was gelatin-coating for pills and capsules. He hired his brother, James, to take over sales in 1878.

In 1881 the business was formally incorporated as Eli Lilly and Company. Col. Lilly's only son, Josiah, a pharmaceutical chemist who graduated from the Philadelphia College of Pharmacy and Science in 1882, joined the family business after college as a superintendent and became company president in 1898. In 1883 the company contracted to mix and sell Succas Alterans, a treatment for venereal diseases. Sales from this product provided funds for Lilly to expand its manufacturing and research facilities.

By the late 1880s Col. Lilly was one of the area's leading businessmen, whose company employed more than one-hundred employees and had $200,000 in annual sales. As the Lilly company grew, other businesses set up operations near the plant on Indianapolis's near south side and the area began to develop into one of the city's major business and industrial hubs. Lilly's production, manufacturing, research, and administrative operations in Indianapolis eventually occupied a complex of more than two dozen buildings covering a 15-block area as well as production plants on Kentucky Avenue.

An assortment of Lilly's throat lozenges from a 1906 sales book.

The 1890s were a tumultuous decade economically, but the company was able to survive and came out stronger than ever. Until the turn of the century Lilly operated as many other pharmaceutical businesses did—manufacturing and selling "sugar-coated pills, fluid extracts, elixirs, and syrups" in Indianapolis and the surrounding area. The company used plants for its raw materials and produced its products by hand. One historian noted, "Although the Indianapolis firm was more careful in making and promoting drugs that the patent medicine men of the era, the company remained ambivalent about scientific research." Succus Alterans, one the company's best sellers, was sold as a "blood purifier", a treatment for syphilis, and was recommended for "certain types of rheumatism" and skin diseases such as eczema and psoriasis.

In addition to Lilly, his brother, James, and son, Josiah, other family members were also employed by the growing company. Lilly's cousin, Evan Lilly, was hired as a bookkeeper. As young boys, Lilly's grandsons, Eli and Josiah (Joe) ran errands and did other odd jobs. After college Eli and Joe joined the family business and eventually each one served as company president and chairman of the board. Their father, Josiah K. Lilly, Sr. became company president after his father, Col. Lilly, died in 1898. Under Josiah's leadership, the company introduced scientific management concepts, organized the company's research department, increased its sales force, and began international distribution of its products. In addition he also oversaw a large expansion of the company. By 1905 the company reached sales of $1 million.

Josiah K. Lilly, Sr. (1861–1948), second company president.

Modernization:1900–40

Just before and after World War I, the Lilly company experienced rapid change. Expansion of Lilly's manufacturing facilities at the McCarty Street plant improved production capacity with a new Science Building (Building 14), opened in 1911, and a new capsule plant (Building 15) in 1913. The company also began constructions of the Lilly Biological Laboratories, a research and manufacturing plant on 150 acres near Greenfield, Indiana, in 1913.

In addition to development of new medicines, the company achieved several technological advances, including automation of its production facilities. Lilly was also an innovator in pill capsule manufacturing. It was among the first manufacturers to insert medications into empty gelatin capsules, which provided a more exact dosage. Lilly manufactured capsules for its own needs and sold its excess capacity to others. A 1917 Scientific American article claimed the Lilly operation in Indianapolis was "the largest capsule factory in the world" and was "capable of producing 2.5 million capsules a day". One of Lilly's innovations was fruit flavoring for medicines and sugar-coated pills to make their medicines easier to swallow. Over the next few years the company began to create tens of millions of capsules and pills annually.

Other advances improved plant efficiency and eliminated production errors. Eli Lilly, grandson of the company founder, introduced a method for blueprinting manufacturing tickets in 1909. This process, which created multiples copies of a drug formula, helped eliminate manufacturing and transcription errors. In the 1920s Eli introduced the new concept of straight-line production, where raw materials entered at one end of the facility and the finished product came out the other end, in the company’s manufacturing process. Under Eli’s supervision, the design for Building 22, a new 5-floor plant that opened in Indianapolis in 1926, implemented the straight-line concept to improve production efficiency and lower production costs. One historian noted, "It was probably the most sophisticated production system in the American pharmaceutical industry." This more efficient manufacturing process also allowed the company to hire a regular workforce. Instead of recalling workers at peak times and laying them off when production demand fell, Lilly's regular workforce produced less-costly medicines in off-peak times using the same manufacturing facilities.

During the 1920s the introduction of new products also brought the company financial success. In 1919 Josiah hired biochemist George Henry Alexander Clowes as director of biochemical research. In 1921 three University of Toronto scientists, J. J. R. Macleod, Frederick G. Banting, and Charles H. Best, were working on the development of insulin for treatment of diabetes. Clowes and Eli Lilly met with the researchers in 1922 to negotiate an agreement with the University of Toronto scientists to mass-produce insulin. The collaboration led to the first successful large-scale production of insulin. In 1923 Lilly began selling Iletin (Insulin, Lilly), their tradename for the first commercially available insulin product in the U.S for the treatment of diabetes. Banting and Macleod won a Nobel Prize in 1923 for their research. Insulin, "the most important drug" in the company’s history, did "more than any other" to make Lilly "one of the major pharmaceutical manufacturers in the world."

The success of insulin enabled the company to attract well-respected scientists and, with them, make more medical advances. By its fiftieth anniversary in 1926 sales reached $9 million and the company produced more than 2,800 different items. In 1928 Lilly introduced Liver Extract 343 for the treatment of pernicious anemia, a blood disorder, in a joint venture with two Harvard University scientists, George R. Minot and William P. Murphy. In 1930 Lilly introduced Liver Extract No. 55 in collaboration with George Whipple, a University of Rochester scientist. Minot, Murphy, and Whipple won the 1934 Nobel Prize in medicine for their research.

Despite the economic challenges of the Great Depression, Lilly's sales rose to $13 million in 1932. That same year Eli Lilly, the eldest grandson of Col. Lilly, was named as the company's president to succeed his father, who remained as chairman of the board until 1948. Eli joined the family business in 1909. In his early years at the company Eli was especially interested in improving production efficiency and introduced a number of labor-saving devices. He also introduced scientific management principles and implemented cost-savings measures that modernized the company. In addition Eli was involved in expanding the company’s research efforts and collaborations with university researchers.

Eli Lilly (1885–1977), third company president.

In 1934 the firm opened two new facilities on the McCarty Street complex: a replica of Lilly’s 1876 laboratory and the new Lilly Research Laboratories, "one of the most fully equipped facilities in the world." In the 1930s the company also continued expansion overseas. In 1934 Eli Lilly and Company Limited, the company's first overseas subsidiary was established in England, with headquarters in London and a manufacturing plant in Basingstoke.

Expansion: 1940–70

World War II brought production at Lilly to a new high with the manufacturing of Merthiolate and penicillin. During the war Lilly also cooperated with the American Red Cross to process blood plasma and by war's end the company had dried over two million pints of blood, "about 20 percent of the United States' total". Merthiolate, first introduced in 1930, was an "anticeptic and germicide" that became a U.S. army "standard issue" during World War II. In the early 1940s Lilly became one of the companies mass-producing penicillin.

International operations expanded even further during World War II. Eli Lilly International Corp. was formed in 1943 as a subsidiary to encourage business trade abroad. By 1948 Lilly employees worked in thirty-five countries, most of them as sales representatives in Latin America, Asia, and Africa.

At the end of World War II the company continued to grow. In 1945 Lilly began a major expansion effort that would include two manufacturing operations in Indianapolis. The company purchased the massive Curtiss-Wright propeller plant on South Kentucky Avenue, west of the company's McCarty Street operation. When renovation was completed in mid-1947, the Kentucky Avenue location manufactured antibiotics and capsules and housed the company’s shipping department. By 1948 Lilly employed nearly 7,000 people.

Eli Lilly, who had served as the company's president since 1932, retired from active management of the company in 1948, became chairman of the board, and relinquished the presidency to his brother, Josiah K. Lilly, Jr. (Joe). During Eli's sixteen-year presidency sales rose from $13 million in 1932 to $117 million in 1948. Joe joined the company in 1914 and concentrated on the company's personnel and marketing efforts. He served as company president from 1948 to 1953, then became chairman of the board and remained in that capacity until his death in 1966. In 1952 the company offered its first public shares of stock. In 1953 Eugene N. Beesley was named the company's new president, the first non-family member to run the company.

Over the next several decades Lilly continued to develop and introduce new drugs to the marketplace. In the 1950s Lilly introduced two new antibiotics: vancomycin and erythromycin. In addition Lilly was heavily involved in production and distribution of Jonas Salk's poliomyelitis (polio) vaccine. In 1954 the National Foundation for Infantile Paralysis (NFIP) contracted with five pharmaceutical companies to produce Salk's polio vaccine for clinical trials. These included Lilly as well as Parke, Davis and Company, Cutter Laboratories, Wyeth Laboratories, and Pitman-Moore Company. Lilly's selection to produce the vaccine was, in part, due to its previous experience in collaborations with university researchers. Lilly manufactured 60 percent of the Salk vaccine in 1955.

During the mid-twentieth century Lilly continued to expand its production facilities outside of Indianapolis. In 1950 Lilly began Tippecanoe Laboratories in Lafayette, Indiana, and increased antibiotic production with its patent on erythromycin. In 1954 Lilly formed Elanco Products Company for the production of veterinary pharmaceuticals. In 1969 the company opened a new plant in Clinton, Indiana.

After a company reorganization and transition to non-family management in 1953, Lilly continued to expand its global presence. In the 1960s Lilly operated thirteen affiliate companies outside the United States. In 1962, with an acquisition from Distillers Company, the company established a major factory in Liverpool, England. In 1968 Lilly built its first research facility, the Lilly Research Centre Limited, outside the United States near London, England.

Innovations and challenges: 1970– present

During the 1970s and 1980s, Eli Lilly and Company saw a flurry of drug production: an antibiotic, Keflex, in 1971; a heart drug, Dobutrex, in 1977; Ceclor, which would become the world's top selling oral antibiotic, in 1979; a leukemia drug, Eldisine; an antiarthritic, Oraflex; and an analgesic, 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 agricultural chemicals, animal-health products, cosmetics, and medical instruments.

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 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 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 percent 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 CEO of Eli Lilly. 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.

Eli Lilly's present day global manufacturing plants.

In 1998 Eli Lilly formed a joint venture with Icos Corporation (ICOS), a Bothell, Washington-based biotechnology company, to develop and commercialize 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 January 29, 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 in U.S. history, totaling $1.415 billion was imposed on Lilly for illegal marketing of its best-selling product, the atypical antipsychotic medication, 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 one billion dollars 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 analogs of Lilly–LY2605541 and LY2963016–were in phase II and III of clinical developmentat that time.

In April 2014, Lilly announced plans to buy 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 Sentinel heartworm treatment would be divested to Virbac in order to avoid a monopoly in a subsector of the heartworm 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 Innovent Biologics, Inc to co-develop and commercialise at least three of Innovents treatments over the next decade, in a deal which could generate up to $456 million. As part of the deal the company will contribute its c-Met monoclonal antibody whilst Innovent will contribute a monoclonal antibody which targets 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 52 acres (0.21 km²) campus and is one of the largest biopharmaceutical manufacturing centers in the United States.

Acquisition history

The following is an illustration of the company's major mergers, acquisitions and historical predecessors:

Eli Lilly and Company

Eli Lilly and Company Eli Lilly and Company (Founded 1876) Distillers Company (Acq 1962) Elizabeth Arden, Inc. (Acq 1971, Sold 1987 to Fabergé) IVAC Corporation (Acq 1977) Cardiac Pacemakers Incorporated (Acq 1977) Physio-Control Corporation (Acq 1980) Advance Cardiovasular Systems Incorporated (Acq 1984) Hybritech (Acq 1986) Devices for Vascular Intervention Incorporated (Acq 1986) Pacific Biotech (Acq 1990) Origin Medsystems (Acq 1992) Heart Rhythm Technologies, Incorporated (Acq 1992) PCS System (Acq 1994) Icos Corporation (Acq 2007) Hypnion, Inc (Acq 2007) ImClone Systems (Acq 2008) SGX Pharmaceuticals, Inc (Acq 2008) Avid Radiopharmaceuticals (Acq 2010) Alnara Pharmaceuticals (Acq 2010) Elanco Products Company Novartis (Animal Health Div Acq 2014) Lohmann SE (Animal Health Div Acq 2014) ChemGen Corp (Acq 2012) Janssen (Animal Health Div Acq 2011) Pfizer (Animal Health Div Acq 2010) Ivy Animal Health (Acq 2007) DowElanco (Established 1989 as joint venture with Dow Chemical. Sold stake 1999) Elanco (Established 1954 as a division of Eli Lilly and Company)

Collaborative research

Further information: Lilly Research Laboratories

Eli Lilly and Company has a long history of collaboration with research scientists. In 1886 Ernest G. Eberhardt, a chemist, joined the company as its first full-time research scientist. Lilly also hired two botanists, Walter H. Evans and John S. Wright, to join its early research efforts. After World War I the company’s expanded production facilities and introduction of new management methods set the stage for Lilly's next crucial phase—its "aggressive entry into scientific research and development." The first big step came in 1919 when Josiah Lilly hired biochemist George Henry Alexander Clowes as director of biochemical research. Clowes had extensive medical research expertise and links to the scientific research community, which led to the company's collaborations with researchers in the U.S. and elsewhere. Clowes's first major collaboration with researchers who developed insulin at the University of Toronto significantly impacted the company’s future. Lilly’s success with insulin production secured the company's position as a leading research-based pharmaceutical manufacturer, allowing it to attract and hire more research scientists and to collaborate with other universities in additional medical research. In 1934 the company built a new research laboratory in Indianapolis. As part of its research and product development process Lilly also conducted clinical studies at Indianapolis City Hospital (Wishard Memorial Hospital). Lilly continues to conduct clinical studies to test medications before their introduction to the market. In 1949 Eli Lilly actually went into partnership with the United States Army Reserve setting up a local Strategic Intelligence Research and Analysis (SIRA)Unit to allow employees to research company data for the Scientific Logistics and Eurasian fields of study (source: declassified Defense Intelligence Agency document MDR -0191-2008 dated 17 Sep 2012). In 1998 the company dedicated new laboratories for clinical research at the Indiana University Medical Center in Indianapolis.

Publicly funded research

In addition to internal research and development activities Lilly is also involved in publicly funded research projects with other industrial and academic partners. One example in the area of non-clinical safety assessment is the InnoMed PredTox, a collaboration with pharmaceutical companies, research organizations, and the European Commission to improve the safety of drugs. In 2008 this consortium, which included Lilly S.A. (Switzerland), secured a €8 million budget for a 40-month project that was coordinated by the European Federation of Pharmaceutical Industries and Associations (EFPIA), an organization who represents the research-based pharmaceutical industry and biotech companies operating in Europe. In 2008 Lilly's activities included research projects within the framework of the Innovative Medicines Initiative, a public-private research initiative in Europe that is a joint effort of the EFPIA and the European Commission.

Pharmaceutical brands

The company's most important products introduced prior to World War II included insulin, which Lilly marketed as Iletin (Insulin, Lilly), Amytal, Merthiolate, ephedrine, and liver extracts. Introduced in 1923, Iletin (Insulin, Lilly) was Lilly's first commercial insulin product. In 2002 the company was the leading producer of products for those with diabetes.

During World War II Lilly produced penicillins and other antibiotics. In addition to penicillin, other wartime production included "antimalarials," blood plasma, encephalitis vaccine, typhus and influenza vaccine, gas gangrene antitoxin, Merthiolate, and Iletin (Insulin, Lilly).

Among the company's more recent pharmaceutical developments are cephalosporin, erythromycin, and Prozac (fluoxetine), a selective serotonin reuptake inhibitor (SSRI) for the treatment of clinical depression. Ceclor, introduced in the 1970s, was an oral cephalosporin antibiotic. Prozac, introduced in the 1980s, quickly became the company's best-selling product for treatment of depression, but Lilly lost its U.S. patent protection for this product in 2001. Among other distinctions, Lilly is the world's largest manufacturer and distributor of medications used in a broad range of psychiatric and mental health-related conditions, including clinical depression, generalized anxiety disorder, narcotic addiction, insomnia, bipolar disorder, schizophrenia, and others.

Cialis

Further information: Tadalafil

In 2003, Eli Lilly introduced Cialis (tadalafil), a competitor to Pfizer's blockbuster Viagra for erectile dysfunction. Cialis maintains an active period of 36 hours, causing it sometimes to be dubbed the "weekend pill". Cialis was developed in a partnership with biotechnology company Icos Corporation. On December 18, 2006, Lilly bought Icos in order to gain full control of the product.

Cymbalta

Further information: Duloxetine

Another Lilly manufactured anti-depressant, Cymbalta, a serotonin-norepinephrine reuptake inhibitor used predominantly in the treatment of major depressive disorders and generalized anxiety disorder, ranks with Prozac as one of the most financially successful pharmaceuticals in industry history. It is also used in the treatment of fibromyalgia, neuropathy, chronic pain and osteoarthritis.

Gemzar

Further information: Gemcitabine

In 1996 the U.S. Food and Drug Administration approved Gemzar for the treatment of pancreatic cancer. Gemzar is commonly used in the treatment of pancreatic cancer, usually in coordination with 5-FU chemotherapy and radiology. Gemzar also is routinely used in the treatment of non-small cell lung cancer.

Methadone

Further information: Methadone

Eli Lilly was the first distributor of methadone, an analgesic used frequently in the treatment of heroin, opium and other opioid and narcotic drug addictions.

Prozac

Further information: Fluoxetine

Prozac was one of the first therapies in its class to treat clinical depression by blocking the uptake of serotonin within the human brain. It is prescribed to more than fifty-four million people worldwide. Prozac was approved by the U.S. FDA in 1987 for use in treating depression. In 2001 Lilly lost its U.S. patent protection for Prozac and in January 2002 the U.S. Supreme Court rejected Lilly's final appeal, a decision that allows other companies to make generic versions of the drug. Prozac has given rise to a number of comparably functioning therapies for the treatment of clinical depression and other central nervous system disorders such as obsessive compulsive disorder, bulimia nervosa, and panic disorders.

Prozac in popular culture

Because of its wide appeal as a popular anti-depressant, references to Prozac have appeared in books, movies, and music. Prozac Nation (1994), an autobiographical book by Elizabeth Wurtzel, was turned into a film of the same name in 2001 and starred Christina Ricci. Listening to Prozac (1993), by Peter Kramer, was a generally analytical look at Prozac and its uses, not only to treat disorders but to diagnose them as well. Talking Back to Prozac (1994), by psychiatrist Peter Breggin, focuses on Prozac's side effects. Rapper Jay-Z referenced Prozac in the song, "Nigga What, Nigga Who" (1998). In HBO's fictional series, The Sopranos, Tony Soprano's use of Prozac is periodically referenced.

Secobarbital

Further information: Secobarbital

Eli Lilly has manufactured Secobarbital, a barbiturate derivative with anaesthetic, anticonvulsant, sedative and hypnotic properties. Lilly marketed Secobarbital under the brand name Seconal. Secobarbital is indicated for the treatment of epilepsy, temporary insomnia and as a pre-operative medication to produce anaesthesia and anxiolysis in short surgical, diagnostic, or therapeutic procedures which are minimally painful. With the onset of new therapies for the treatment of these conditions, Secobarbital has been less utilized, and Lilly ceased manufacturing it in 2001.

Secobarbital overdoses

Secobarbital gained considerable attention during the 1970s, when it gained wide popularity as a recreational drug. On September 18, 1970, rock guitarist legend Jimi Hendrix died from a secobarbital overdose. On June 22, 1969, secobarbital overdose was the cause of death of actress Judy Garland. The drug was a central part of the plot of the hugely popular novel Valley of the Dolls (1966) by Jacqueline Susann in which three highly successful Hollywood women each fall victim, in various ways, to the drug. The novel was later released as a film by the same name.

Thimerosal

Further information: Thiomersal

Eli Lilly has developed the vaccine preservative thiomersal (also called merthiolate and thimerosal). Thiomersal is effective by causing susceptible bacteria to autolyze. Launched in 1930, merthiolate was a mercury-based antiseptic and germicide that "had been formulated at the University of Maryland with support of a Lilly research fellowship."

Additional Eli Lilly drugs

• Alimta (for pleural mesothelioma and non-small cell lung cancer).
• Amytal (a "barbituric acid derivative" introduced in 1925 was "the first American sedative of this kind").
• Ceclor (an oral cephalosporin antibiotic).
• Darvocet (an analgesic for mild to moderate pain).
• Darvon, (an analgesic alternative to codeine, introduced in 1957 withdrawn in 2009).
• Effient (an antithrombotic for acute coronary syndrome in percutaneous coronary intervention); co-marketed with Daiichi Sankyo.
• Ephedrine (introduced in 1926 for the treatment of allergies, including hay fever and asthma).
• E-Mycin (an antibiotic for respiratory and other infections).
• Erbitux (for metastatic colorectal cancer and head and neck cancer).
• Evista (for the prevention and treatment of osteoporosis and for the reduction in risk of breast cancer).
• Forteo (for osteoporosis).
• Glucagon (for severe, life-threatening hypoglycemia).
• Humalog (for Type 1 and Type 2 diabetes).
• Humatrope (a human growth hormone for pediatric growth disorders).
• Humulin (for Type 1 and Type 2 diabetes).
• Keflex (a cephalosporin antibiotic).
• Livalo (for hypercholesterolemia).
• Moxam (an antibiotic. Introduced in collaboration with Shionogi, a Japanese drug company).
• Mandol (an injectable cephalosporin antibiotic for treating "hospital-acquired infections").
• ReoPro (a cardiovascular drug used during high-risk angioplasty surgery).
• Strattera (a non-stimulant medication for attention-deficit hyperactivity disorder).
• Symbyax (for bipolar disorder).
• Tradjenta (for Type 2 diabetes).
• Xigris (for severe sepsis). Withdrawn in November 2011 after failure to show benefit.
• Zyprexa (for schizophrenia and bipolar disorder) Released in 1996.

Personnel

After three generations of Lilly family leadership under company founder, Col. Eli Lilly, his son, Josiah K. Lilly Sr., and two grandsons, Eli Lilly Jr. and Josiah K. Lilly Jr., the company announced a reorganization in 1944 that prepared the way for future expansion and the eventual separation of company management from its ownership. The large, complex corporation was divided into smaller groups headed by vice presidents and in 1953 Eugene N. Beesley was named the first non-family member to become the company’s president.

Although Lilly family members continued to serve as chairman of the board until 1969, Beesley's appointment began the transition to non-family management. In 1972 Richard D. Wood became Lilly's president and CEO after the retirement of Burton E. Beck. In 1991 Vaughn Bryson became president and Wood became board chairman. During Bryson's 20-month tenure as Lilly's president and CEO, the company reported its first quarterly loss as a publicly traded company.

Randall L. Tobias, a vice chairman of AT&T Corporation, was named chairman, president, and CEO in June 1993. Tobias, a Lilly board member since 1986, was recruited from outside the company's executive ranks to replace Lilly's president, Vaughn Bryson, and board chairman, Richard Wood. Tobias later became the U.S. director of Foreign Assistance and administrator of the U.S. Agency for International Development (USAID), with the rank of ambassador.

Sidney Taurel, former chief operating officer of Lilly, was named CEO in July 1998 to replace Tobias, who retired. Taurel became chairman of the board in January 1999. Taurel retired as CEO on March 31, 2008, but remained as chairman of the board until December 31, 2008. John Lechleiter was elected as Lilly’s CEO and president, effective April 1, 2008. Lechleiter had served as Lilly's president and chief operating officer since October 2005.

A number of global leaders in the fields of health policy, management, and scientific research have worked at Lilly, including:

• Ernesto Bustamante, Peruvian scientist.
• Jose F. Caro, American physician, scientist, and educator most notable for his research in obesity and diabetes.
• Richard DiMarchi, Chief Scientific Officer, Marcadia Biotech.
• Mitch Daniels, current president of Purdue University, former Governor of Indiana and director of the Office of Management and Budget for President George W. Bush.
• Roald Hoffmann, Nobel Prize-winning chemist.
• Michael Johns, former White House speechwriter and Heritage Foundation policy analyst.
• Claude H. Nash, CEO, ViroPharma.
• Peter Nicholas, co-founder of Boston Scientific.

Prominent Lilly board members have included:

• George H. W. Bush, former President and Vice President of the United States of America.
• Martin Feldstein, economist, Harvard University.
• Kenneth Lay, former CEO, Enron.
• William Verity Jr., former U.S. Secretary of Commerce.

Accolades

In 2006 Fortune magazine named Eli Lilly and Company one of the top 100 companies in the United States for which to work. Also in 2006, Barron's Magazine named the company among the top 500 best managed companies in the U.S.

In 2012 Working Mothers magazine named Lilly one of the "100 Best Companies for Working Mothers" for the eighteenth consecutive year. Working Mother reported that in 2012 forty-eight percent of Lilly’s U.S. employees and thirty-four percent of its U.S. managers and executives were women.

Community service

The Lilly family as well as Eli LIlly and Company has a long history of community service. Around 1890 Col. Lilly turned over operation of the family business to his son, Josiah, who ran the company for the next several decades. Col. Lilly remained active in civic affairs and assisted a number of local organizations, including the Commercial Club of Indianapolis, which later became the Indianapolis Chamber of Commerce, and the Charity Organization Society, a forerunner to the Family Services Association of Central Indiana, an organization supported by United Way. Josiah’s sons, Eli and Joe, were also philanthropists who supported numerous cultural and educational organizations.

It was Josiah Sr. who continued his father's civic mindedness and began the company tradition of sending aid to disaster victims. Following the 1906 San Francisco earthquake, the company sent much needed medicine to support recovery efforts and provided relief after the 1936 Johnstown Flood.

In 1917 Lilly Field Hospital 32, named in Josiah’s honor, was equipped in Indianapolis and moved overseas to Contrexville, France, during World War I, where it remained in operation until 1919. Throughout World War II, Lilly manufactured more than two hundred products for military use, including aviator survival kits and seasickness medications for the D-Day invasion. In addition Lilly dried more than two million pints of blood plasma by the war’s end.

Lilly Endowment

Main article: Lilly Endowment

In 1937 Josiah K. Lilly Sr. and his two sons, Eli and Joe, founded the Lilly Endowment, a private charitable foundation, with gifts of Lilly stock.

Eli Lilly and Company Foundation

The Eli Lilly and Company Foundation, which is separate from the Lilly Endowment, operates as a tax-exempt private charitable foundation that the company established in 1968. The Foundation is funded through Lilly’s corporate profits.

Controversy

See also: List of largest pharmaceutical settlements

Eli Lilly has been involved in numerous controversies, including political and medical ethics controversies. Eli Lilly is now the sole manufacturer of BGH having purchased the rights to manufacture the drug from Monsanto.

Lawsuits

In June 2008, Eli Lilly and Company agreed to settle a lawsuit stemming from discrimination charges. The lawsuit alleged that the company withheld severance pay in order to convince a former employee, Starr E. Johnson, to withdraw her lawsuit. Eli Lilly was accused by the U.S. Equal Employment Opportunity Commission of violating the federal anti-discrimination law when they withheld severance benefits to Johnson. Johnson originally filed a discrimination charge after she was fired in 2005. She is a black woman and became disfigured in 1997 when she was exposed to a blood pathogen. Her charge claimed that her supervisor stated that he was put in charge "so that he could watch her and get rid of her and that no one liked looking at her." Eli Lilly was ordered to pay $54,400 in severance pay, $7,000 in interest and compensatory damages, along with $3,000 in attorney fees.

NAFTA Suit

In September 2013, Eli Lilly sued Canada for violating its obligations to foreign investors under the North American Free Trade Agreement by allowing its courts to invalidate patents for two of its drugs. The company sought damages in the amount of $500 million for lost potential profits.

Criminal prosecution

See also: Olanzapine § Controversy, lawsuits and settlements; and James Gottstein § Eli Lilly memos

In 2009, four sales representatives for Eli Lilly filed separate qui tam lawsuits against the company for illegally marketing the drug Zyprexa for uses not approved by the Food and Drug Administration. Eli Lilly pled guilty to actively promoting Zyprexa for off-label uses, particularly for the treatment of dementia in the elderly. The $1.415 billion penalty included an $800 million civil settlement and a $515 million criminal fine. The U.S. Justice Department said the criminal fine of $515 million was the largest ever in a health care case, and the largest criminal fine for an individual corporation ever imposed in a U.S. criminal prosecution of any kind. "That was a blemish for us," John C. Lechleiter, CEO of Lilly, told The New York Times. "We don’t ever want that to happen again. We put measures in place to assure that not only do we have the right intentions in integrity and compliance, but we have systems in place to support that."

See also

• Lilly Endowment
• Lilly Research Laboratories

External links

• Eli Lilly and Company Official Web Site.
• Eli Lilly Company profile at NNDB.
• Eli Lilly and Company Snapshot at Bloomberg Businessweek