Eli Lilly: Developing Cymbalta
Case Study 1: Analysis

The given discussion is based on Eli Lilly, a research-based pharmaceutical company. The first core strategy of Eli Lilly and company was to replace its premier drug “Prozac” before losing its patent. The second is differentiating the company and its brand. Lilly began concentrating and devoting its resources to other possible assets: R-fluoxetine, OFC (olanzapine-fluoxetine combination), 5HT2 Antagonist, SSRI, Business Development Opportunities, and Cymbalta (duloxetine) (Ofek & Laufer, p.8). In the initial section of this document, the company’s strategic issues and problems will be analyzed. In the next section of the document, an analysis and evaluation of several company related factors is performed which will help develop the facts. Finally, alternative solutions have been prepared, in relation to these actions, and some effective recommendations are also suggested for the firm 's enhanced future business. Identification of the strategic issues and problems: Since Eli Lilly and company started business, they have achieved tremendous success due to the provision of effective drugs for the treatment of depression. The company gained major success due to the sale of Prozac. In the year 1990, several substitute products of Prozac such as Celexa, Zoloft, and Paxil were introduced in the market which had cut the market of Lilly. After two decades of its business success, the company experienced a major problem of downward product sales. The problem of the company is stated as downward falling in annual sales, due to shared market by competitors through the provision of effective substitutes. For the solution of this problem, there are several options, as well as, constraints pertaining to the company. The main constraint of the company is specific treatment of its drugs. Less capital availability for clinical trials of drugs and time-consuming R&D process are the major restrictions. This problem can



References: Ofek, E. & Laufer, R. (2008). Eli Lilly: Developing Cymbalta. Harvard Business School Cases. Retrieved from http://hbsp.harvard.edu/product/cases. Eli Lilly Case Study 1 Analysis

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