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Eli Lilly And Company Paper

1454 Words6 Pages

Chloe Helser
Mrs. McCreery
Business Management
13 May 2016
Eli Lilly and Company
Eli Lilly and Company was founded in May 1876 by Colonel Eli Lilly of Indianapolis, Indiana. Eli Lilly, a 38-year-old pharmaceutical chemist, was frustrated by the poorly produced and ineffective medicines of his day. After making the promise to himself and society that he would found a company that manufactured pharmaceutical products of the highest quality, Eli Lilly’s business flourished. Colonel Lilly still wasn’t satisfied with the quality of his company’s products. After hiring a young chemist in 1886, they both became dedicated to working on improving current products instead of developing new formulas. New products would come at a later date after existing …show more content…

The net income has been virtually cut in half from 2013 to 2015. Comparing 2014 and 2015 income statements, 2015 has more money invested or made in every account except for operating expenses. To come out of the downward trend, Eli Lilly and Company should focus on investing more into research and development and marketing their products. Eli Lilly is known for their quality products and keeping a steady flow in releasing new medicines could potentially cause a substantial rise in sales. With this being said, the downward trend started in 2013 because their patent on a very important product came up. Because of the patent expiring for Cymbalta, one of their most known products, it has made making generic alternatives for other companies very easy. Other companies are making money off of the generic brands because they are cheaper so Eli Lilly and Company is struggling to give their customers a reason for their higher prices. The company lost billions to competitors such as GlaxoSmithKline and Pfizer Incorporated when it lost patent protection for Cymbalta, Zyprexa and Humalog. To counteract the bad effects, Eli Lilly will stay focused on developing new pharmaceuticals that no other company has. This will give the market no option but to keep buying from and investing in Eli Lilly and Company. Another reason Eli Lilly and Company is down on revenues is because certain medicines have been known to come with bad side effects. Releasing these products has caused a lot of damage to the image of the company. Eli Lilly has to rebuild its name with products that are efficient and cost

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