Eli Lilly and Company: Case Study

Topics: Insulin, Blood sugar, Eli Lilly and Company Pages: 2 (323 words) Published: March 1, 2011
Brief – Eli Lilly and Company


The case talks about the dilemma faced by the management of Eli Lilly (a pharmaceutical manufacturing firm) regarding the timing and placement of the launch of their products and services – Insulin pen, Match insulin and Controlled Diabetes Services in the major world markets. They are struggling to introduce the new insulin pens in the market as they fear it would cannibalize the sales of insulin sold in vials.

Goals to be achieved

-Become the leader in pharmaceutical industry by beating their biggest competitor, Novo Nordisks -Successfully launch the Insulin pen and Match insulin in the world market -Set up Control diabetes services (CDS) which were anticipated as major source of generating profit for the firm


-Launch the insulin pen immediately and stop production of insulin vials since the presence of both products in the market could be detrimental to sales -Work on research and development of new products, product line rationalization and supply chain management


I would recommend that they expand and invest more in the Controlled Diabetes Services on a global basis by providing value added solutions, since no other firm is involved in it. They should be aiming at being the leaders of the industry and stop following their competitors. As the cost of patient care is high, insurance companies are not interested in investing in long term patient behavior modification. This would serve Eli Lilly as a blue ocean where they do not have competition from other firms with respect to providing long term patient care, educational materials, diet management aids, blood glucose test equipment, and syringes they needed to manage their disease. They would be generating revenue of $1,300 per patient along with a profit margin of 5% to 15%. Also, I believe they should not wait any longer to launch the insulin pens since they are way behind Novo, which had successfully launched it...
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