IBJNews

Lilly's sales-force restructuring to affect 1,600-plus

Back to TopCommentsE-mailPrintBookmark and Share

Eli Lilly and Co.’s massive restructuring of its sales force will affect more employees than the Indianapolis-based drugmaker disclosed in early April.

Lilly will eliminate 1,624 positions from its U.S. sales force in July, according to a notice the company made to the Indiana Department of Workforce Development. The filing was dated April 26.

Those losing their jobs will have the opportunity to apply for as many as 560 sales positions within Lilly, the company said. Those who do not find new jobs by July 15 will be let go.

Among those affected are 379 workers on “fixed-duration” contracts that are scheduled to end during the first half of this year, anyway, Lilly said.

When Lilly first disclosed its planned sales force cuts on April 11, it said about 30 percent of its full-time U.S. sales positions would disappear. That statement referred to the estimated 700 full-time, permanent positions that will be cut.

But including the fixed-duration employees, Lilly is actually cutting its sales force by nearly 40 percent, Lilly spokesman Scott MacGregor said.

In April, the company said the layoffs would number “fewer than 1,000,” with less than 20 of those cuts occurring in Indiana.

In January, Lilly estimated that its sales force reductions would require severance payments of $26 million.

Lilly is slashing its sales force because its U.S. patents on two of its blockbuster drugs—the antidepressant Cymbalta and the osteoporosis drug Evista—are soon to expire. When that happens, cheaper generic copies of those drugs will steal their combined $4.7 billion in annual U.S. revenue.

“We’re just planning and expecting to lose that revenue and have had to make some changes in accordance with that,” MacGregor said in April.

The job cuts are primarily in Lilly’s Bio-Medicines division, which includes neuroscience, cardiovascular and osteoporosis drugs, the notice to the state said. 

Lilly had hoped that these cuts wouldn’t come. It had two neuroscience drugs in Phase 3 trials last year, both of which failed to meet their goals. One drug, mGlu 2/3, was supposed to be a new antipsychotic drug like Lilly’s former best-seller Zyprexa, but without Zyprexa’s side effects. Lilly halted studies of that drug when it proved ineffective.

The other drug was solanezumab, Lilly’s leading candidate to slow the effects of Alzheimer’s. That drug showed some encouraging signs, but regulators told Lilly it needs to conduct another clinical trial of the drug before they’ll consider approving it.

Lilly employs a total of 17,000 workers in the United States, with 11,000 in Indiana.

Other parts of Lilly’s business continue to grow, offsetting the impact of the patent expirations on Cymbalta and Evista. But Wall Street analysts still expect Lilly’s overall revenue to fall from $22.6 billion last year to as low as $20 billion next year.

Lilly’s revenue already declined from an all-time high of $24.3 billion in 2011, after the patent expirations of its blockbuster cancer drug Gemzar in 2010 and Zyprexa in 2011. Lilly has been furiously trying to launch new drugs to replace the roughly $10 billion it will lose from the patent expiration of these four drugs, but has largely been stymied in that quest so far.

ADVERTISEMENT

  • Remember the Zyprexa scandal
    The Eli Lilly company made an astounding $70 BILLION on Zyprexa that they PUSHED on the elderly and underage children (*Viva Zyprexa* Lilly sales rep slogan) with wanton disregard for the side effects *FIVE at FIVE* The Zyprexa antipsychotic drug,whose side effects can include weight gain and diabetes, was sold to Veterans,children in foster care, elderly in nursing homes. *Five at Five* was the Zyprexa sales rep slogan, meaning *5mg dispensed at 5pm would keep patients quiet*. *Tell the truth don't be afraid*-- Daniel Haszard FMI zyprexa-victims(DOT)com
  • A House of Cards?
    On the one hand, one wonders if these people know what they're doing. On the other hand, they sure know how to obfuscate what they're doing, especially when it comes to announcements of job cutbacks, etc. I wouldn't buy their stock and, unless they were the only makers of some drug I vitally needed, I wouldn't go out of my way to buy their drugs. Back in the day, before Lechleiter, et al., Lilly had some credibility.
  • Generics are stealing?
    "...cheaper generic copies of those drugs will steal their combined $4.7 billion in annual U.S. revenue." What kind of writing is this? Is the writer trying to lead us to believe that the creation of generic drugs is illegal or improper?
  • Good for them...
    Awesome, they can get rehired. Good for them. What about the 60 local Indy area workers that have lost or are losing them jobs because Lilly just outsourced them to India and Indian workers that were shipped over here to take their jobs? Why isn't that story getting any press?
  • What gripe?
    Teresa, Lilly makes a drug you could benefit from. Your comment is rambling and unfocused.
  • My gripe
    If I can avoid a lilly product,here I go. They will send these jobs elsewhere (overseas). Will they be made safely? I doubt it. Shame on lilly,you make Prozac for the masses who need to control/reduce the everyday depression and anxiety of NO JOBS here to be found.

    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. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

    2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

    3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

    4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

    5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

    ADVERTISEMENT