Eli Lilly Case Study

Case Study Analysis Eli Lilly: Developing

Introduction

Eli Lilly is a pharmaceutical corporation that was established in 1876. After many years of successful business they decided to develop the New Antidepressant Team (NAT). The NAT was tasked to discover a suitable replacement for Prozac. Prozac had been Eli Lilly’s most profitable antidepressant drug. In December of 2003 Prozac’s patent was due to expire and with the termination of Prozac’s patent other pharmaceutical companies would have the opportunity to market and distribute a generic version of the drug at a much cheaper price. With the December deadline quickly approaching the evaluation process of what drug should be developed as the successor to Prozac began.

Strategic issues and problems

“The NAT quickly and efficiently narrowed down their options to five already existing products with enough potential to be Prozac's successors” (Okef & Laufner, p.7). Out of these five assets, Cymbalta a drug developed by Eli Lilly in the early 90s was selected. Shortly after Cymbalta was first developed Eli Lilly found that it was only insignificantly successful for the treatment of depression. However they were indications that a higher dosage could possibly provide a more acceptable response for the patients. Additionally to the higher dosage have a more success with combating depression it could possibly relieve the pain associated with depression, “despite this revelation the neurologists and the psychiatrics fluctuated in their opinions on whether depression caused such pains as headaches, and back pain” (Okef & Laufner, p.8). If Eli Lilly had discovered a drug that could not only cure depression and had consensus that there was pain associated with depression and Cymbalta could cure that too, then they would have a revolutionary product on their hands. However the difference in the doctor’s opinions would have a major impact on whether Cymbalta would receive the approval needed from management...