Essay on Eli Lilly

2932 Words Mar 24th, 2012 12 Pages
Eli Lilly and Company:Drug Development Strategy
Assignment One
RSM494: Technological Strategy

2/16/2012
Antora Sanchari Ahmed
997292139
Professor Terry Amburgey

TABLE OF CONTENTS

Executive Summary………………………………………………………………………..3

Market Analysis……………………………………………………………………………4

Industry Analysis………………………………………………………………………….5

Product and Process Analysis…………………………………………………………….7

Company Strategy………………………………………………………………………...9

Recommendations………………………………………………………………………..11

Conclusion………………………………………………………………………………..13
…show more content…
The different stages of drug development are outlined below (Exhibit 2): * Basic Research (about 2 years) * Preclinical (Biological) Screening (about 3 years) * Human Clinical trials (about 6 years)
Each drug then had to pass the following three phases of clinical trials under the U.S. Food and Drug Administration: * Phase I Safety Trials (1 year) * Phase II Efficacy Trials (2 years) * Phase III Long- term Efficacy Trials (3 years)
The last part is a FDA review which takes about 2-3 years.
Regimes of appropriability: Appropriability plays a critical role especially in the pharmaceutical industry, in which it is particularly tight once you have patent protection. However, since it takes a long time for a drug to be approved by the FDA, the effective term of the patent protection (which is currently 20 years) is around 5 years, as it takes 14.8 years for the drug to hit the market. Eli Lilly already has a promising lead LY334370 (which was already an improvement over LY329511), and according to Teece, since the industry has a tight appropriability regime, this will provide the researchers additional time to develop the product. In this case, Eli Lilly should either patent the lead compound as well as rest of the compounds to prevent imitation and continue research through combinatorial chemistry. Teece also mentions that usually the best initial leads turn out to be wrong (LY329511), but if correctly

More about Essay on Eli Lilly

Open Document