Internet Mini Case #1
Internet Mini Case #1
Eli Lilly & Company
Maryanne M. Rouse
A LEADING U.S. PHARMACEUTICAL COMPANY, ELI LILLY AND COMPANY (LLY) PRODUCED a wide variety of ethical drugs (approximately 94.2% of 2003 revenues) and animal health products (just over 5.8% of 2003 revenues). The company history began with Colonel Eli Lilly, a Union officer in the Civil War, who invented a process for coating pills with gelatin. Lilly’s principal activities were to discover, develop, manufacture, and market pharmaceutical-based health care solutions. The company’s two business segments are Pharmaceutical and Animal Health. The company’s pharmaceutical product lines comprised neuroscience, endocrine, anti-infective, cardiovascular agents, oncology, and animal health. Lilly manufactured and distributed its products through owned or leased facilities in the United States, Puerto Rico, and 26 other countries; the company’s products were sold in approximately 160 countries. In the United States, Lilly’s pharmaceutical products were distributed through approximately 35 independent wholesalers that served physicians, pharmacies, hospitals, and other health care professionals. Three wholesalers in the United States, AmeriSource Bergen Corporation, Cardinal Health, and McKesson, each accounted for between 19% and 23% of 2001 consolidated net sales. Products were promoted through sales representatives who called on physicians, wholesalers, hospitals, managed-care organizations, retail pharmacists, and other health care professionals. The company supported sales representatives’ efforts with advertising in medical and drug journals and distributed literature and samples of products to physicians at medical meetings. Like its competitors, Lilly also advertised certain products directly to consumers, a practice coming under increased criticism from public health and cost-containment advocates. Marketing methods and product emphasis were adapted to meet local needs and regulations in markets
Eli Lilly & Company
Maryanne M. Rouse
A LEADING U.S. PHARMACEUTICAL COMPANY, ELI LILLY AND COMPANY (LLY) PRODUCED a wide variety of ethical drugs (approximately 94.2% of 2003 revenues) and animal health products (just over 5.8% of 2003 revenues). The company history began with Colonel Eli Lilly, a Union officer in the Civil War, who invented a process for coating pills with gelatin. Lilly’s principal activities were to discover, develop, manufacture, and market pharmaceutical-based health care solutions. The company’s two business segments are Pharmaceutical and Animal Health. The company’s pharmaceutical product lines comprised neuroscience, endocrine, anti-infective, cardiovascular agents, oncology, and animal health. Lilly manufactured and distributed its products through owned or leased facilities in the United States, Puerto Rico, and 26 other countries; the company’s products were sold in approximately 160 countries. In the United States, Lilly’s pharmaceutical products were distributed through approximately 35 independent wholesalers that served physicians, pharmacies, hospitals, and other health care professionals. Three wholesalers in the United States, AmeriSource Bergen Corporation, Cardinal Health, and McKesson, each accounted for between 19% and 23% of 2001 consolidated net sales. Products were promoted through sales representatives who called on physicians, wholesalers, hospitals, managed-care organizations, retail pharmacists, and other health care professionals. The company supported sales representatives’ efforts with advertising in medical and drug journals and distributed literature and samples of products to physicians at medical meetings. Like its competitors, Lilly also advertised certain products directly to consumers, a practice coming under increased criticism from public health and cost-containment advocates. Marketing methods and product emphasis were adapted to meet local needs and regulations in markets