Lilly outlines innovation strategy, reviews pipeline for 2010

NEW YORK Eli Lilly & Co. will pursue an innovation-based strategy to compete and serve patients, the drug maker said Thursday at its annual meeting with its investment company.

The Indianapolis-based drug maker boasts a pipeline of more than 60 potential drugs in clinical development, including 25 in phase 2 and phase 3 studies. It expects to have 10 in phase 3 studies in 2011 and launch two new medicines per year beginning in 2013.

“In 2009, Lilly has once again exhibited strong performance in a tough environment, and we’ve continued with a series of actions aimed at speeding innovation to patients and delivering greater value to our customers,” Lilly president and CEO John Lechleiter said. “Through these actions and more, we are transforming Lilly to compete and to win in an ever more demanding and challenging environment.”

Lilly’s situation stands in contrast with those of many other large drug makers, such as Pfizer and Merck & Co., which have pursued big-ticket acquisitions of Wyeth and Schering-Plough Corp. to stave off the effects of patent expirations on top-selling products and weak pipelines.

“We see a divergence of strategies among our peers to deal with these challenges, including the wave of consolidation this year,” Lechleiter said. “Many companies are seeking to lower risk by reducing their focus on innovative medicines. This is not our path.”