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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

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

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

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:
  • Location: Indianapolis, Indiana
  • Zip Code: 46285
  • Employees: Approximately 40,000 globally
Competitors
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
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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
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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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