Eli Lilly And Company- Outline Essay

This report is Part 1 of assignment for Marketing MBA 565-MBOL1 to Dr. Stephen Baglione

Lilly also saw opportunities to use the world for clinical testing, which would enable it to move forward faster, as well as shape opinion with leaders in the medical field around the world; something that would help in Lilly’s marketing stage. Ranbaxy‘s R&D efforts began at the end of the 1970s; in 1979, the company still had only 12 scientists. Ranbaxy approached Lilly in 1992 to investigate the possibility of supplying certain active ingredients or sourcing of intermediate products to Lilly in order to provide low-cost sources of intermediate pharmaceutical ingredients. The two companies had very different business focuses.

In our experience with Pharmasim we learned that Marketing decision making must be very sensitive and responsive to everything going on in the industry which is very complex. Consumer responses to marketing tactics can be volatile and unpredictable and no idea is guaranteed to work well. Marketing is a matter of meticulous research, assumptions, planning, and volatility at times. Overall we took away two major points: 1) that it is important to consider the product lifecycle in evaluating how to promote businesses and, 2) that the “Sweet Spot” as a competitive advantage should be the greatest point of consideration when evaluating how to best gain leverage to beat the competition in the minds of

Eli Lilly’s decision to create a joint venture was not surprising (figure 1). The India government limited foreign direct investment to 51%, importing was subject to manufacturing at high costs outside the country and then paying high importation tariffs, and licensing was not prudent due to an absolute lack of product patents laws that were needed to protect Eli Lilly’s intellectual property.

Specify the types of country risks that pharmaceutical firms face in international business. How do the political and legal systems of countries affect the global pharmaceutical industry?

Three ethical issues relating to marketing and advertising are Truth in Adverting and Marketing, Advertising and Marketing Harmful Products and Advertising and Marketing Tactics. The FDA (Food and Drug Administration) has requirements for truth in advertising and the FTC

The Pharmaceutical industry has been in the spotlight for decades due to the fact that they have a reputation for being unethical in its marketing strategies. In The Washington Post Shannon Brownlee (2008) states, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow.” This honorable statement is completely lost in today’s world of pharmaceutical marketing tactics. These tactics are often deceptive and biased. Big Pharma consistently forgets their moral purpose and focuses primarily on the almighty dollar. Big Pharma is working on restoring their reputation by reforming their ethical code of conduct.

What can be called a modern plague, the pharmaceutical industry is manipulating consumers and corrupting health care between questionable marketing strategies, sponsorship of physicians and scare tactics used to make a valetudinarian of an average person, drug manufacturers are becoming a menace to ethical health care operations. Their main concern is to make a profit.The Pharmaceutical industry has transformed into a billion dollar industry due to its ability to convince the world there is a pill for everything. How powerful is the industry? Enough so that it is referred to as “Big Pharma”. The biggest hurdle the industry is facing is how it can capitalize on the opportunities created by patients. That is why Pharma has been lobbying legalizing marijuana.

Merck is one of the biggest pharmaceutical companies in the world today. Although encountered with success, it still faces many problems today while trying to be the market leader competing against its competition. While being research and development driven company, Merck now has to go beyond R&D to stay competitive in the pharmaceutical industry. The main issue that seems to come up is that how far it can progress with the dual challenge of hitting peak annual financial performance while keeping the research pipeline full continued to weigh on senior management. Through the late 80s to early 90s, Merck was able to boast

Eli Lilly is a leading pharmaceutical company specializing in treatment of diseases like the depression, schizophrenia, diabetes, infections, osteoporosis among others. Evista, a newly developed drug by Eli Lilly, is an estrogen replacement therapy medicine for prevention of post-menopausal osteoporosis which also appeared to lower the incidence of breast cancer in women. This FDA approved drug is expected to be a potential blockbuster and generate revenue of 1 billion US dollars per year for the company.

Cambridge Sciences Pharmaceuticals (CSP) is an international healthcare company based in Cambridge, Massachusetts. The firm focuses on developing, manufacturing and marketing products that treat metabolic disorders, gastrointestinal diseases, immune deficiencies, as well as other chronic medical conditions. In 2008, CSP received its Food and Drug Administration (FDA) approval for its newest prescription drug, Metabical. Metabical is a drug that offers moderately overweight adults a medically proven, effective method to reach a desirable weight to improve their overall health by shedding ten to thirty pounds.

The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.

Eli Lilly was approached by a leading pharmaceutical firm in India to consider building a joint venture together. Ranbaxy Laboratories began as a family business in the 1960’s, but with strong entrepreneurial skills the company grew to become one of the largest manufacturers for bulk drugs and generic drugs. The two companies considered pursuing a joint venture that would support on another’s products by supplying one other with ingredients to complete company products without having to trade with other companies internationally. The JV would potentially lead both companies, together to become a dominant force in the Indian market.

* Large Balance, $1.4B in goodwill on Merck’s Balance Sheet – the goodwill on Merck’s balance sheet is primarily attributable to past acquisitions.

Ratios aside, the patent of its older product (mainly Zyprexa) will expire in 2011. However, the increased in the newer products that accounts for total sales has increased to 24% from 18% in