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Eli Lilly and Company
From Wikipedia, the free encyclopedia
| Eli Lilly and Company | |
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| Type | Public (NYSE: LLY) |
|---|---|
| Founded | 1876 |
| Headquarters | Indianapolis, Indiana, USA |
| Key people | Sidney Taurel, Chairman & CEO John C. Lechleiter, President Derica Rice, CFO Eli Lilly, Founder |
| Industry | Pharmaceuticals, Healthcare |
| Products | Prozac, Cialis, Strattera, Darvocet |
| Revenue |  $14.6 billion USD (2005) |
| Employees | 44,500 (2004) |
| Website | www.lilly.com |
Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company and one of the world's largest corporations. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States. The company was founded in 1876 by a pharmaceutical chemist, Eli Lilly, for which the company was ultimately named.
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A Fortune 500 corporation, Eli Lilly had revenues of $14.6 billion in 2005, making it the 148th largest company in the United States. The company is publicly traded on the New York Stock Exchange and is a member of the S&P 500 stock index. Eli Lilly is one of the Nifty Fifty stocks that propelled the late 20th century bull market.
Eli Lilly and Company grew from a tiny laboratory in Indianapolis in 1876 to one of the world's largest pharmaceutical companies.
Colonel Eli Lilly, a pharmacist who had served as a Union officer in the American Civil War, acquired a laboratory on Pearl Street in Indianapolis in 1876 and started Eli Lilly and Company. His innovative process of gelatin-coating pills helped establish the success of the company. When Eli Lilly died in 1889, his son Josiah K. Lilly Sr. took control of the company. Josiah inherited his father's civic mindedness and ordered the company to send much needed medicine to support recovery efforts following the 1906 San Francisco earthquake.
In 1919, Lilly hired biochemist George Henry Alexander Clowes as director of biochemical research. Clowes' negotiations with researchers who developed insulin at the University of Toronto helped launched the first successful large-scale production of insulin in 1923. The success of insulin enabled the company to attract well-respected scientists and, with them, make more medical advances.
Eli Lilly, the grandson of Col. Lilly, was named as the company's president in 1932. In 1934, the company made its first venture overseas when a Lilly office was opened in England. World War II brought production at Lilly to a new high with the manufacturing of Merthiolate and blood plasma. In 1943, the company began full-scale production of penicillin.
Eli Lilly International Corp. was formed in 1943 as a subsidiary to encourage business trade abroad. In 1945, the company opened a new plant on South Kentucky Avenue in Indianapolis and, by 1948, Lilly employed nearly 7,000 people. Also in 1948, Eli Lilly relinquished the presidency to his brother Josiah Lilly Jr. In 1952, the first public shares of stock were offered and, in 1953, Eugene N. Beesley was named president. He was the first non-family member to run the company.
Lilly continued to expand. In 1950, Tippecanoe Laboratories, in Lafayette, Indiana, increased antibiotic production with its patent on erythromycin. In 1954, Elanco Products Co. was formed for the production of veterinary pharmaceuticals. In 1969, the company opened a new plant in Clinton, Indiana. In 1968, Lilly Research Centre Ltd. near London, England, was built. It was the company's first research facility outside the United States.
Lilly made an uncharacteristic, but ultimately profitable, move in 1971 when it bought cosmetic manufacturer Elizabeth Arden for $38 million. Sixteen years later, Lilly sold Arden to Faberge in 1987 for $657 million.
Richard Wood was named CEO of Lilly in 1973. During the 1970s and 1980s, Eli Lilly and Company saw a flurry of drug production: antibiotic Keflex in 1971; heart drug Dobutrex in 1977; Ceclor, which would become the world's top selling oral antibiotic, in 1979; leukemia drug Eldisine; antiarthritic Oraflex; and analgesic Darvon.
Lilly ventured into medical instruments through the acquisition of IVAC Corp., which manufactures vital signs and intravenous fluid infusion monitoring systems. Lilly also purchased Cardiac Pacemaker, a manufacturer of heart pacemakers.
In 1989, a joint agri-chemical venture between Elanco Products Co. and Dow Chemical created DowElanco. In 1997, Lilly sold its 40 percent share in the company to Dow Chemical for $1.6 billion. In 1991, Vaughn Bryson was named CEO. During his 18-month tenure, the company reported its first quarterly loss ever. Randall L. Tobias, former vice-chairman of AT&T, was named Bryson's replacement in 1993. He was the first official recruited outside of the company. Sidney Taurel, former chief operating officer of Lilly was named CEO in 1998, replacing Tobias. Taurel was named chairman in January 1999.
Eli Lilly announced a major expansion plan in July 1999, totaling $1 billion and expected to create 7,500 jobs over 10 years, but Lilly lost exclusive rights to Prozac in 2001 and profits fell drastically. The company has since made a comeback with sales on Zyprexa and Cymbalta.
In October 2006, Eli Lilly announced that it was acquiring ICOS for $2.1 billion, or $32 a share. The initial attempt to acquire Icos failed under pressure from large institutional shareholders, causing Lilly to offer $34 per share. ISS, a proxy advisory firm, advised Icos shareholders to reject the proposal as undervalued. However, the acquisition was approved by ICOS shareholders and Eli Lilly completed its acquisition of the company on January 29, 2007.
Among the company's major pharmaceutical breakthroughs are cephalosporin, erythromycin, insulin, and, with Prozac® (fluoxetine), the world's first and most prominent selective serotonin reuptake inhibitor for the treatment of clinical depression.
Prozac has been a breakthrough therapy, and the first such therapy in its class to treat clinical depression by stimulating the release of serotonin within the human brain.
Prozac is the best-selling anti-depressant in pharmaceutical history and has given rise to a number of comparably-functioning therapies for the treatment of clinical depression and other central nervous system disorders. Prozac works by inhibiting the absorption of serotonin in the human brain.
In 2003, Eli Lilly introduced Cialis® (tadalafil), a competitor to Pfizer's blockbuster Viagra for erectile dysfunction. Cialis was developed in a partnership with biotechnology company ICOS. Cialis maintains an active period of 36 hours, causing it sometimes to be dubbed the "weekend pill".
With its television advertisement for Cialis during the 2004 Super Bowl Halftime Show, Eli Lilly was one of several companies whose costly 2004 Super Bowl Halftime advertisements were largely overshadowed by the Janet Jackson and Justin Timberlake Super Bowl XXXVIII halftime show controversy.
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.
Eli Lilly has developed the controversial vaccine preservative Thiomersal (also called Merthiolate®). Thimerosal is effectual by causing susceptible bacteria to autolyze.
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.
- Alimta® (for mesothelioma and non-small cell lung cancer).
- Actos® (for Type 2 diabetes) .
- Byetta® (for Type 2 diabetes),
- Cymbalta® (for diabetic neuropathic pain, major depressive disorders and stress urinary incontinence).
- Darvocet® (for mild to moderate pain).
- Evista® (for the prevention and treatment of osteoporosis).
- Forteo® (for osteoporosis).
- Gemzar® (a chemotherapy agent for lung, pancreatic and other cancers).
- Humalog® (for diabetes).
- Humatrope® (a human growth hormone for pediatric growth disorders).
- Symbyax® (for bipolar disorder).
- Xigris® (for severe sepsis).
- Zyprexa® (for schizophrenia and bipolar disorder).
Eli Lilly has a global reputation for attracting global leaders in the fields of health policy, management, and scientific research. Prominent former Lilly employees include:
- Ernesto Bustamante, Peruvian scientist.
- Mitch Daniels, current Governor of Indiana, former Hudson Institute executive, and former Director of 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.
- Randall L. Tobias, first United States Director of Foreign Assistance, serves concurrently as the Administrator of the U.S. Agency for International Development (USAID), with the rank of Ambassador.
Prominent Lilly board members have included:
- George Herbert Walker Bush, former President and Vice President of the United States of America.
- Martin Feldstein, economist, Harvard University.
- Kenneth Lay, former Enron executive (prior to the Enron scandal).
- William Verity Jr., former U.S. Secretary of Commerce.
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. The company was named one of the top 10 Best Companies for working mothers in 2004 by Working Mothers magazine.
- Colonel Eli Lilly was the inventor of the gelatin capsule.
- Some individuals with the surname of "Cialis" objected to the naming of Lilly's erectile dysfunction drug, but the pharmaceutical giant insists that the drug's name has nothing to do with the surname.[1]
- Commonly known as "reds" in the drug culture because of the tablet's color, Lilly's Secobarbital was a source of numerous drug overdoses during this period, the most notable of which was that of rock guitarist legend Jimi Hendrix, who purportedly took nine Secobarbital tablets the night of September 18, 1970, after a night of drinking alcohol, and was later found dead in his sleep in his London apartment. The cause of Hendrix' death was labeled asphyxiation after Hendrix vomited in his sleep from the excessive Secobarbital dose and alcohol and was unable to awaken.
- Lilly's Secobarbital was the underlying theme of Jacqueline Susann's novel Valley of the Dolls and the film of the same name. In the novel and film, three hugely talented young women rise to various levels of success and fame, while using Secobarbital, but they ultimately fall victim, in various ways, to the drug. One of the most successful novels of all time, it has sold over 30 million copies since its 1966 release.
- Lilly's antibiotic erythromycin, used to treat a wide variety of bacterial infections including respiratory tract infections, middle ear infections, and skin infections, was created by Filipino scientist Abelardo Aguilar, and has earned Lilly billions of dollars. Neither Aguilar nor the Philippines government received royalties.
- The popularity of Lilly's blockbuster antidepressant, Prozac, led to a best-selling book, Prozac Nation by Elizabeth Wurtzel. The book was later turned into a Miramax film of the same name, Prozac Nation, starring Jason Biggs and Christina Ricci.
- Conspiracy theorists claim Eli Lilly made Lysergic acid diethylamide (LSD) for the Central Intelligence Agency (CIA) during the 1950s and 1960s, which was used by the CIA and the U.S. military in the mind and behavioral controlling operation, MKULTRA. Eli Lilly holds a US Patent for Lysergic Acid Amides, Serial No. 473,443. Patented February 28, 1956.
- On December 10, 2006, it was reported by the The Observer newspaper in London that Prozac was building up in some of the UK's drinking supplies due to the large number of people now taking it. The newspaper reported that UK's Environment Agency is conducting tests and is presuming that the Prozac is very diluted. Nonetheless, the paper reported some environmental experts have voiced concern at the findings.