ELI LILLY AND COMPANY (INDIA) PVT. LTD.
Background
Eli Lilly and Company (India) Pvt. Ltd is a subsidiary
of the US pharmaceutical major, Eli Lilly and Company
that has an annual turnover of more than US$ 11
billion and is one of the top companies in Fortune 500 list of companies. Eli Lilly and Company is a
leading, innovation-driven corporation involved in
developing a growing portfolio of pharmaceutical
products. Eli Lilly India was set up in 1993 as a 50:50
joint venture between Eli Lilly and the Indian partner
Ranbaxy Laboratories Ltd., as Eli Lilly Ranbaxy Ltd.
The venture was started primarily to manufacture
and market a select range of drugs of Eli Lilly and
Company. After its inception in 1993, the Indian
operation achieved a quick break-even in 1996. In
August 2001, Eli Lilly and Company acquired the 50
per cent stake from Ranbaxy Laboratories Ltd. to
create a 100 per cent Lilly subsidiary, Eli Lilly and
Company (India) Pvt. Ltd.
Fastest growing pharmaceutical company in
India
Eli Lilly India is one of the fastest growing
pharmaceutical companies in India and operates in
therapeutic segments including diabetes, cancer, sepsis,
osteoporosis, cardio vascular disorders, growth
hormone deficiency, among others. Eli Lilly employs
540 people in India. It had invested US$ 1.3 million
initially in capital in 1992, an additional US$ 17 million
in capital in 2001 when it took over the equity of
Ranbaxy. It has invested US$ 25 million with TCS
for software and email systems. Eli Lilly has also
invested US$ 2.5 million every year in various forms
for the past 5 to 6 years.
Factors for success
Creating a motivated workforce
Eli Lilly has been successful in creating a highly
motivated and loyal work force that is helping the
company grow. Employee care is very critical to Eli
Lilly, and it reads the minds of its staff through the
Voice of Employee (VoE) survey that is done every
couple of years. In India, this practice has been
adopted as a broader survey called the ‘Health of
the Organisation’.
Leveraging the India Advantage
Eli Lilly India features in the top 25 companies in the
‘Best Employers survey’ conducted by Hewitt in 2003.
Eli Lilly India was ranked 4th in the ‘Great places to
work survey’ conducted by Great places to work
Inc., USA in 2003. Eli Lilly India has also borrowed
the concept of cross-functional movements from its
parent Eli Lilly and Company, and this makes it a
good place to work for specialists and generalists.
bulk drugs.
Using technology to tap human capital
InnoCentive is an E-Business company of Eli Lilly and
Company, a leading innovation-driven pharmaceutical
company. This is a unique initiative that has enabled
Eli Lilly to tap India’s vast scientific pool of talent.
InnoCentive is the first online forum that allows
world-class scientists and science-based companies
to collaborate in a global scientific community to
achieve innovative solutions to complex challenges.
It has established relationships with some of the best
research institutes throughout the world which include
CSIR, National Chemical Laboratories (NCL) in India,
among others. This is a concept called distributive
R&D where Eli Lilly is simultaneously exploring the
untapped knowledge base of scientists at multiple
locations.
Increasing investment in R&D
Eli Lilly has been successful in utilising the low-cost
R&D advantage that India offers. Eli Lilly is significantly
increasing its R&D budget from US$ 1.8 million in
2002 to US$ 2.1 million in 2003 and the projected
budget for 2004 is US$ 2.3 million.
Outsourcing manufacturing
Eli Lilly was quick to identify India’s outsourcing
advantage. It ventured into sourcing arrangements with
Sun Pharma in 2002 for manufacturing and clinical
research. It has made India as a global source for its
Future plans
Eli Lilly’s future plans are to increase investment in
clinical research, discovery research, biomedical
research, among other things, and launch more
products once the patent bill is passed.
Eli Lilly
could increase investments in India by three to five
times if the patent bill is passed.
Manufacturing in India makes sense for the company
as it decreases the cost of production. At present
Chennai-based Shasun Chemical and Drugs Ltd. is a
bulk provider of the anti-ulcer drug Nizatidine and
anesthetic Methohexital for Eli Lilly’s entire global
consumption. Ranbaxy currently provides bulk and
finished forms of antibiotics, Distaclor and Keflex,
and Effcal, a calcium tablet. About 70 per cent of Eli
Lilly’s sales in India come from products sourced from
Sun Pharma and Ranbaxy.
Clinical trials
India offers a perfect base for clinical trials and
research for pharmaceutical companies. Eli Lilly is
conducting as many as 20 clinical trials in India. The
Eli Lilly and Company (India) Pvt. Ltd.:
AT A GLANCE
• Eli Lilly and Company: Global pharmaceutical
major. One of the top Fortune 500 companies
country offers a huge base of disease population. Eli
• Eli Lilly and Company (India) Pvt Ltd: Fastest
Lilly’s trails are based on the ethical platform of
growing pharmaceutical company in India. 540
informed enrolment. The company is mainly focusing
employees
on Phase II – IV work in therapeutic areas of diabetes,
• Factors for success: Creating a motivated
oncology, infectious diseases, critical care and women’s
workforce. Using technology to tap human
health. Working with over 40 hospitals in India,
capital. Increasing investment in R&D
including government and private hospitals, Eli Lilly
• For Eli Lilly, India is: An outsourcing base for
currently has 17 large and small clinical research
manufacturing. A global source for bulk drugs.
projects involving both, phase II and III trials. Eli Lilly
focuses its internal research efforts primarily on six
core therapeutic areas: neuroscience; endocrine
disorders; cancer; infectious diseases; cardiovascular
diseases; and gene regulation.
US COMPANIES IN INDIA
Base for clinical trials
• Future plans, India: Increase investment in
research. Launch more products