IBJNews

Lilly launching new venture capital fund

Back to TopCommentsE-mailPrintBookmark and Share

Eli Lilly and Co. is establishing a new venture capital fund that would seek to acquire experimental drugs from outside researchers and use Lilly’s Chorus unit to decide if they are promising enough to launch large, expensive human trials.

Lilly would then have “preferential access” to acquire the molecules itself and add them to its pipeline, said Lilly CEO John Lechleiter during a presentation to investors this morning in New York.

Lilly’s Chorus subsidiary, founded in 2002, has reduced the time and cost to figure out whether an experimental drug molecule affects a certain illness. Chorus has done this by using outside firms for 80 percent of its work, as well as pushing to identify proteins in the body, or biomarkers, that show a drug’s effectiveness sooner than patients and doctors could report manually.

Lechleiter said Lilly would also use “other alternative development engines” to decide whether the experimental drugs are promising for large human trials, something known in the drug industry as “proof of concept.”

Lilly spokesman Mark Taylor said the company would release further details about the fund in January.

“It continues on with the FIPNet strategy,” said Taylor, referring to Lilly’s efforts to use outside researchers and developers to share in the risk and reward of developing new medicines. He added, “It gets us in on the ground level.”

Lilly is not a stranger to the venture capital world. In 2001, it launched Lilly Ventures to invest in companies that it thought could produce a handsome return. It also looked to invest in companies that were developing technologies related to Lilly’s business.

Lilly has put $200 million in Lilly Ventures, including a fresh $25 million investment earlier this year.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT