Eli Lilly decision leads to restructuring

A decision by pharmaceutical company Eli Lilly has led a development company to announce it is to restructure.

Eli Lilly previously chose to discontinue its collaboration on the development of Alkermes’ inhaled insulin product, AIR Insulin.

In light of this termination, Alkermes plans to restructure its operations and reduce its number of employees by 150, in addition to closing a manufacturing plant in Massachusetts.

The decision means approximately 18 per cent of its workforce will be without a role in the company.

“Lilly’s termination of the program forced us to make difficult choices,” said David Broecker, president and chief executive officer at Alkermes.

According to reports, Eli Lilly based its decision on the lack of market potential for the inhaled insulin product. However, it was maintained that the choice to bring the joint project to an end was not based on safety issues related to the drug.