Eli Lilly SWOT Analysis

adam February 24, 2011 Health & Pharmaceutical No Comments

Eli Lilly, a largest globally renowned pharmaceutical company head quartered in Indiana and Indianapolis in USA was found by Eli Lilly, a pharmaceutical chemist. The primary services of the company include the therapies related to endocrinology, oncology, cardiovascular, neuroscience, and animal health. Primarily the focus was insulin production but now the major produce is psychiatric medications.

Strengths

• New York stock exchange is publicly trading Eli Lilly Company and has been given the membership of S and P 500 stock index.

• Eli Lilly products are in access for more than 140 countries.

• The company is lifted worldwide by almost 50.00 employees, which is its biggest strength.

• High research and development costs are contributed.

• Their committed worker and excellent working environment of high tech labs is promising to their bright future.

• Researchers are thoroughly working for innovative and constructive ideas for producing best pharmaceuticals of the day.

• Global interactions for acquiring up to date experiences and researches.

• Their manufacturing base is highly efficient, strong and very well developed.

• Consistently producing effective high quality formulated drugs.

• Competent and experienced workers in highly developed labs.

• With 6% increase in sales total sales of the company grew to $23 in 2010, in which 22% is being earned by a Zypexa, a disorder drug, 13 % by Cymbalta and 29% by Almita, a Cancer drug (Krauskopf, 2010).

• Their earning per share was $3.53 in 2010 which is comparatively better that that of 2009, that was $3.11.

Weaknesses

• Because of late storage problems, company discontinued the production of Alzheimer’s late stage drug which the only cure for lost memory patients. Despite discontinuation they should search for a replacement (Fitzhugh, 2010).

• Despite India is the biggest consumer of drugs but still Eli Lilly has given it less share.

• Their drugs are not the wholly solely products but also being manufactured by other companies, so uniqueness is still a question.

Opportunities

• Collaborative researches that are funded by other sources are also emphasized by Eli Lilly, beside their main research line.

• Formulation of innovative products for different therapies.

• Eli Lilly has acquired Avid Radiopharmaceuticals, Inc. by signings an agreement and through this they will also be able to acquire outstanding shares, thus expanding their market.

• They are in process of launching their new products like blood thinners for monitoring and detection of new chronic diseases including Parkinson’s disease and diabetes.

• Drugs delivery system is very efficient through out the world.

Threats

• Eli Lilly itself is a threat to global pharmaceutical industries including AstraZeneca, Pfizer, Johnson and Johnson etc but they are its competitors as well.

• The rates are cheaper as compared to technologies used as compared to the market rate provided by other companies which will cause economic slow down.

• The product first formed gets the first mover advantage, which can prove haul for the technologies employed by the company introducing the product secondarily, so the efficient and organized system is needed.

References

1. Lilly Reports (2010). Third-Quarter 2010 Results. Retrieved from http://newsroom.lilly.com/releasedetail.cfm?

2. Lilly Reports Strong Second-Quarter Results (2010). Retrieved from Results http://newsroom.lilly.com/releasedetail.cfm?

3. Fitzhugh M., (2010). Eli Lilly Approaches One of Biotech’s Steepest Patent Cliffs. Seeking Alpha. Retrieved from http://seekingalpha.com/article/221680-eli-lilly-approaches-one-of-biotech-s-steepest-patent-cliffs.

4. Krauskopf L., (2010). UPDATE 3-Lilly halts Alzheimer’s drug as symptoms worsen. Reuters. Retrieved from http://www.reuters.com/article/2010/08/17/lilly-idCNN1712079320100817?rpc=44.

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