Lilly announces strategic changes

Eli Lilly has announced that it is to make a number of strategic changes to its global manufacturing operations in a bid to lend better support to its drug pipeline and product portfolio.

Decisions affecting the company’s manufacturing operations include the halting of construction of an insulin manufacturing plant in Prince William County, Virginia, with staff who wish to stay with the company being relocated.

Additionally, a quarter of the staff at Lilly’s Tippecanoe manufacturing site in India will be offered a voluntary exit programme, while the company makes new investments in Kinsale, Ireland and Indianapolis for the development of new biotechnology products.

Scott Canute, president of manufacturing operations at Lilly, commented that the company was making these changes in order to perform better in an increasingly challenging pharmaceutical industry.

“Lilly is making several changes to its global manufacturing operations to ensure the company has the right capacity in the right places,” he said.

He added that this transformation would require a shift in allocation of resources, with investment in areas of new growth and cutbacks in other areas.

Last month, Lilly announced a 6.25 per cent increase in its quarterly dividend, with the board announcing a $0.425 dividend per share on all outstanding common stock for the first quarter of 2007.