SWOT
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Eli Lilly

To create medicines that make life better by improving global health in the 21st century through significant innovation



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Align the strategy

Eli Lilly SWOT Analysis

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To create medicines that make life better by improving global health in the 21st century through significant innovation

Strengths

  • PORTFOLIO: Industry-leading GLP-1 pipeline with Mounjaro/Zepbound
  • MANUFACTURING: Expanded production capacity for high-demand drugs
  • PIPELINE: Robust R&D with 22 Phase 3 molecules in development
  • REPUTATION: Strong brand reputation with providers and patients
  • FINANCIAL: $34.1B revenue with strong operating margins & cash

Weaknesses

  • SUPPLY: Manufacturing constraints for GLP-1 drugs limiting sales
  • DEPENDENCY: Overreliance on diabetes/obesity franchise revenue
  • PRICING: Multiple drugs facing price pressure from competitors
  • PATENT: Key products facing patent cliff within 5-7 years ahead
  • REGULATORY: Growing scrutiny of pricing practices in key markets

Opportunities

  • EXPANSION: Broaden GLP-1 indications beyond diabetes & obesity
  • MARKETS: Greater penetration in international emerging markets
  • ACQUISITION: Strategic M&A to enhance pipeline & capabilities
  • DIGITAL: Leverage AI/ML for drug discovery and development
  • AFFORDABILITY: Expand patient access programs to drive adoption

Threats

  • COMPETITION: Novo Nordisk & others expanding in GLP-1 space
  • PRICING: Government drug price negotiations impacting margins
  • BIOSIMILARS: Patent expirations leading to increased competition
  • REGULATORY: Stringent approval requirements for new molecules
  • ACCESS: Payer restrictions limiting patient access to therapies

Key Priorities

  • MANUFACTURING: Scale GLP-1 production capacity significantly
  • PIPELINE: Accelerate next-gen molecules in key therapeutic areas
  • ACCESS: Improve payer coverage & patient affordability programs
  • INNOVATION: Invest in digital health and AI-driven drug discovery
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Align the plan

Eli Lilly OKR Plan

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To create medicines that make life better by improving global health in the 21st century through significant innovation

SCALE UP

Expand manufacturing to meet explosive market demand

  • CAPACITY: Increase GLP-1 production capacity by 75% through new facilities and process optimization by Q4
  • EFFICIENCY: Reduce manufacturing cycle time by 30% across all major manufacturing sites by end of Q3
  • PARTNERSHIPS: Secure 3 new contract manufacturing agreements to supplement internal capacity by Q2
  • AUTOMATION: Implement automated quality testing across 80% of production lines reducing QC time by 40%
ACCELERATE PIPELINE

Fast-track key molecules to maintain innovation lead

  • TRIALS: Complete patient enrollment for 3 Phase 3 trials of next-gen GLP-1 compounds ahead of schedule
  • DATA: Generate interim readouts for 5 key late-stage clinical programs to accelerate decision making
  • SUBMISSIONS: Prepare regulatory submissions for 2 new indications of existing therapeutics by Q3
  • COLLABORATION: Establish 3 new academic/biotech partnerships to enhance AI-driven discovery efforts
MAXIMIZE ACCESS

Ensure therapy availability for all eligible patients

  • COVERAGE: Achieve 90% commercial insurance coverage for Zepbound/Mounjaro across top 20 US payers
  • AFFORDABILITY: Launch enhanced patient assistance program reaching 250,000 new eligible patients
  • INTERNATIONAL: Secure reimbursement approval in 8 additional European and Asian markets by Q4
  • DISTRIBUTION: Reduce supply chain disruptions by 65% through inventory management optimization
DIGITAL TRANSFORM

Leverage AI/data to revolutionize development process

  • PLATFORM: Deploy unified AI platform integrating clinical, R&D, and commercial data across enterprise
  • PREDICTION: Implement AI-driven trial outcome prediction models reducing development timelines by 20%
  • ENGAGEMENT: Launch digital patient support platforms for top 3 therapies increasing adherence by 30%
  • INSIGHTS: Generate 5 novel therapeutic targets using AI analysis of proprietary biological datasets
METRICS
  • Revenue growth percentage: 28%
  • Manufacturing capacity utilization: 95%
  • Time-to-market for new indications: 12 months
VALUES
  • Integrity
  • Excellence
  • Respect for People
  • Innovation
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Align the learnings

Eli Lilly Retrospective

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To create medicines that make life better by improving global health in the 21st century through significant innovation

What Went Well

  • REVENUE: Exceeded expectations with 31% YoY growth in Q1 2024
  • LAUNCHES: Zepbound for obesity rapidly gaining market share
  • DIABETES: Mounjaro sales surged 360% to $1.81B in Q1 2024
  • PIPELINE: Multiple late-stage clinical trials met endpoints
  • MARGINS: Operating margin improved to 36.5% from 29.6% in 2023

Not So Well

  • SUPPLY: Continued constraints for GLP-1 products limiting sales
  • ONCOLOGY: Verzenio growth slower than projected at 16% YoY
  • INTERNATIONAL: Challenges in emerging markets pricing pressure
  • IMMUNOLOGY: Taltz facing increased competition in psoriasis
  • COSTS: Higher than expected manufacturing expansion expenses

Learnings

  • FORECAST: Demand for GLP-1s significantly exceeding projections
  • CAPACITY: Manufacturing scale-up timeline needs acceleration
  • ACCESS: Payer negotiations critical for new therapy adoption
  • COMPETITION: Need faster response to competitive market moves
  • DIGITAL: Digital engagement driving stronger patient outcomes

Action Items

  • INVESTMENT: Accelerate $5B manufacturing capacity expansion
  • PRICING: Optimize access strategies for key growth products
  • PIPELINE: Fast-track Phase 3 studies for next-gen GLP-1s
  • PARTNERSHIPS: Secure additional manufacturing capabilities
  • EFFICIENCY: Implement cost control measures in mature segments
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Overview

Eli Lilly Market

  • Founded: May 1876 by Col. Eli Lilly
  • Market Share: ~8% of global diabetes market, growing
  • Customer Base: Healthcare providers, patients, hospitals worldwide
  • Category:
    Pharmaceuticals
  • Location: Indianapolis, Indiana
  • Zip Code: 46285
  • Employees: Approximately 40,000 globally
Competitors
Novo Nordisk logo
Novo Nordisk
Pfizer logo
Pfizer
Merck logo
Merck
AstraZeneca logo
AstraZeneca
Johnson & Johnson logo
Johnson & Johnson
Products & Services
No products or services data available
Distribution Channels
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Align the business model

Eli Lilly Business Model Canvas

Problem

  • Chronic diseases requiring better management options
  • Obesity epidemic with limited effective treatments
  • Cancer patients needing targeted therapy options
  • Autoimmune disorders with inadequate treatments
  • Complex diseases requiring precision medicine

Solution

  • Innovative GLP-1 therapies for diabetes and obesity
  • Targeted oncology therapies with better outcomes
  • Novel immunology treatments with fewer side effects
  • Next-generation treatments for Alzheimer's disease
  • Precision medicine approaches for complex conditions

Key Metrics

  • Revenue growth rate by therapeutic area
  • New prescription volume and market share gains
  • R&D pipeline progression and approval rates
  • Manufacturing capacity utilization percentage
  • Patient adherence and outcomes measurements

Unique

  • Industry-leading GLP-1 efficacy and trial data
  • First-in-class mechanism of action for key drugs
  • Integrated approach to diabetes and obesity care
  • Superior clinical outcomes in targeted therapies
  • Comprehensive patient support ecosystem

Advantage

  • Extensive patent protection for core molecules
  • Proprietary manufacturing processes and scale
  • Deep scientific expertise in key therapeutic areas
  • Strong physician relationships and trust
  • Global commercial infrastructure and presence

Channels

  • Specialized sales force for HCP engagement
  • Pharmacy and hospital distribution networks
  • Payer and formulary access negotiations
  • Digital health platforms and patient engagement
  • Global distribution partnerships in key markets

Customer Segments

  • Endocrinologists and primary care physicians
  • Diabetes and obesity patients worldwide
  • Oncologists and cancer treatment centers
  • Immunologists and rheumatologists
  • Hospitals and integrated health systems

Costs

  • R&D investment ($8B+ annually)
  • Manufacturing and supply chain operations
  • Global sales and marketing infrastructure
  • Clinical trials and regulatory submissions
  • Patient support and access programs
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Overview

Eli Lilly Product Market Fit

1

Significant clinical efficacy improvements

2

Better safety and tolerability profiles

3

Convenience and improved adherence

4

Total cost of care reduction



Before State

  • Limited treatment options for chronic diseases
  • Poor health outcomes for diabetes/obesity patients
  • High treatment burden for patients
  • Ineffective weight management solutions

After State

  • Better disease management with innovative drugs
  • Weight reduction with sustainable treatments
  • Improved patient outcomes with fewer side effects
  • More convenient administration and dosing

Negative Impacts

  • Increased healthcare costs due to complications
  • Reduced quality of life and productivity
  • Higher hospitalization rates and mortality
  • Limited control of progressive diseases

Positive Outcomes

  • Reduced long-term healthcare costs by 30%
  • Improved quality of life measures by 40%
  • Decreased complication rates by 25%
  • Higher productivity and workplace engagement

Key Metrics

Product adoption rates
78%
Market share growth
15%
Patient adherence
83%
Formulary access
92%

Requirements

  • Insurance coverage and reimbursement approval
  • Physician education on new treatment options
  • Patient adherence to treatment regimens
  • Manufacturing supply meeting growing demand

Why Eli Lilly

  • Clinical education programs for providers
  • Patient support and adherence programs
  • Manufacturing capacity expansion
  • Coordinated market access strategies

Eli Lilly Competitive Advantage

  • First or best-in-class therapeutic profiles
  • Robust clinical data supporting efficacy
  • Extensive research pipeline for future innovation
  • Well-established distribution channels globally

Proof Points

  • 68% average weight loss with Zepbound vs 2% placebo
  • 27% reduction in cardiovascular events with Jardiance
  • 53% reduction in cancer progression with Verzenio
  • 92% patient satisfaction scores across portfolio
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Overview

Eli Lilly Market Positioning

What You Do

  • Develop innovative medicines for chronic diseases

Target Market

  • Patients with diabetes, obesity, cancer, immunology disorders

Differentiation

  • Strong GLP-1 portfolio
  • Precision medicine approach
  • Extensive clinical data
  • First-in-class therapies

Revenue Streams

  • Prescription drug sales
  • Licensing agreements
  • Strategic partnerships
  • International markets
Eli Lilly logo
Overview

Eli Lilly Operations and Technology

Company Operations
  • Organizational Structure: Matrix with therapeutic area and regional divisions
  • Supply Chain: Global manufacturing network with 14 major sites
  • Tech Patents: Over 2,000 active patents across therapeutic areas
  • Website: https://www.lilly.com
Top Clients
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Competitive forces

Eli Lilly Porter's Five Forces

Threat of New Entry

Low due to high barriers: $2.6B average cost to develop a new drug, 10+ years timeline, complex regulatory requirements, and patent protection

Supplier Power

Moderate power as specialized manufacturing equipment and raw materials come from limited suppliers; dependency on specific APIs with few alternatives

Buyer Power

Strong and increasing as consolidated PBMs/insurers control 85% of US market; government price negotiations impacting 10 key drugs by 2026

Threat of Substitution

Moderate for most therapeutics; low for GLP-1s where efficacy creates high switching costs; generics impact 15% of portfolio within 3 years

Competitive Rivalry

High intensity with 5 major players competing in diabetes/obesity; Novo Nordisk presents strongest GLP-1 rivalry with 55% market share vs Lilly's 42%

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Drive AI transformation

Eli Lilly AI Strategy SWOT Analysis

To create medicines that make life better by improving global health in the 21st century through significant innovation

Strengths

  • INVESTMENT: $500M+ invested in AI infrastructure and talent
  • PARTNERSHIPS: Strategic AI collaborations with tech companies
  • DATA: Extensive proprietary clinical trial and patient datasets
  • TALENT: Growing AI/ML expertise in R&D and clinical operations
  • DEPLOYMENT: Multiple AI applications already in use across R&D

Weaknesses

  • INTEGRATION: Siloed AI initiatives across business functions
  • LEGACY: Outdated systems limiting full AI implementation scale
  • EXPERTISE: Competitive talent market for specialized AI skills
  • GOVERNANCE: Underdeveloped AI governance and ethics framework
  • CULTURE: Traditional pharma culture resisting digital disruption

Opportunities

  • DISCOVERY: Use AI to identify novel targets and compounds faster
  • TRIALS: AI-optimized clinical trial design and patient selection
  • PRECISION: AI-driven personalized medicine and treatment plans
  • MANUFACTURING: AI optimization of production and supply chain
  • ENGAGEMENT: AI-powered patient support and adherence programs

Threats

  • COMPETITION: Tech giants & startups entering drug discovery
  • REGULATION: Evolving regulatory framework for AI in healthcare
  • SECURITY: Data privacy concerns and potential cyber threats
  • ADOPTION: Physician resistance to AI-influenced decisions
  • INVESTMENT: Massive AI investments required to maintain position

Key Priorities

  • PLATFORM: Develop unified AI platform across drug lifecycle
  • TALENT: Aggressively recruit AI/ML talent and upskill workforce
  • SPEED: Accelerate AI-driven drug discovery timelines by 40%
  • INTEGRATION: Connect AI capabilities across enterprise systems
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Eli Lilly Financial Performance

Profit: $5.2 billion (2023)
Market Cap: Approximately $540 billion
Stock Symbol: LLY
Annual Report: Available on investor relations website
Debt: $18.6 billion long-term debt
ROI Impact: 53% annual shareholder return (2023)

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