Eli Lily Case Report

In: Business and Management

Submitted By jillianm1234
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Executive Summary
In an effort to follow-up its success with Prozac (see Appendix A), Eli Lilly and Company saw a market for an anti-migraine drug that similarly targeted serotonin levels. Their prior research and development involving such neurotransmitters put them at an advantage over their competitors. Their goal was to find a neurotransmitter (i.e. serotonin) that matched the receptor that they felt was the key to relieving the migraine. (Appendix B provides a basic overview on how receptors and neurotransmitters integrate and function.) Aided by cutting edge methods of combinatorial chemistry and high-throughput screening, Lilly was able to test compounds at a significantly quicker rate. In fact, their first set of compounds tested resulted in a higher potency compound than any that resulted from traditional chemistry methods of testing one compound at a time.
With time being of the essence in the drug industry, the natural solution was to utilize combinatorial chemistry to develop the anti-migraine drug. It will allow for a quicker drug development and hopefully ensure a spot as one of the first market entrants. First to market was not a must but being a fast follower was very important in order to gain significant market share. Having a facility dedicated to this drug will create and efficient production process and reduce waste. The goal would be to focus just on the one anti-migraine drug in the hope that it will make it all the way to market. However, if it were to fail one of the stages of clinical trials, Lilly would have this dedicated facility to test variations on the drug formula to quickly develop a backup drug.
In the mid-1990s, the pharmaceutical industry was very large and very profitable with worldwide sales around $250 billion. The G7 industrialized nations (Canada, France, Germany, Italy, Japan, United Kingdom, and the United…...

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