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To keep sales force busy, Lilly takes on new drug

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Eli Lilly and Co. beefed up its sales force this summer to promote its new blood thinner Effient. But it decided it needed to put at least one more arrow in their quivers.

Indianapolis-based Lilly has agreed to have its U.S. sales personnel promote a new cholesterol-fighting drug developed by Japan-based Kowa Pharamceuticals Ltd., called Livalo.

Financial terms of the deal were not specified. But Lilly will pay Kowa an upfront fee, help shoulder the marketing costs, and then in return receive co-promotion fees that escalate as the drug’s sales go up. Lilly will also license the drug to sell in Latin American countries.

"Our co-promotion arrangement in the U.S. and licensing arrangement in Latin America will allow Lilly to expand our product offerings in the cardiovascular therapeutic area and more efficiently utilize our existing cardiovascular sales force,” said Lilly CEO John Lechleiter, in a statement.

Lilly has only two major products aimed specifically at heart patients: Effient and ReoPro, a drug used for patients undergoing angioplasty or stent procedures, which hit the market in 1995. Both have modest sales, although Effient is expected to eventually achieve annual sales topping $1 billion.

Livalo, approved in the U.S. in August, is a late arrival to a huge party. Cholesterol-fighting drugs, called statins, were the second-best-selling class of drugs in the U.S. last year, with total retail sales of $14.5 billion, according to market research firm IMS Health.

Total dollars in the market have been declining, however, as cheaper generic versions of statins have hit the market the past three years. When the statin Lipitor, the best-selling drug in the world, loses its patent protection in June 2011, price competition will be fierce for Livalo.

But Kowa officials say Livalo appears to help some patients for whom existing statins do not. Also, they emphasize, Livalo has lower chances of negative interactions with other drugs, including clot-busting drug Warfarin.

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  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

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