The fiercest competition facing Eli Lilly is the substitutes and in the form of generic pharmaceuticals and animal products which do not require the costly, time-consuming clinical trials in which private and public payers encourage generic pharmaceutical use. “Competitive factors for both human and animal products include effectiveness, safety, ease of use, price and demonstrated cost-effectiveness, market effectiveness, research and development of new products, process and uses.”11 In the industry, the top competitors in the industry with current revenue are: Wyeth (Revenue $22.8 B), Teva (Revenue $21.9 B), Eli Lilly (Revenue $21.2 B), Bayer Heathcare AG (Revenue $21.4 B), Abbot Laboratories Inc (Revenue $20.9 B), Bristol-Myers Squibb Co. (Revenue $19.4 B). It should be noted that the company spends 18% of its annual revenue on research to continue the development pipeline. The years 2012 and 2013 were good for Eli Lilly leading up to a revenue decrease in 2014 and steady growth through 2016 to present as shown in the chart below: Source: …show more content…
This is evident of the pipeline the company maintains facing wins and losses. One example of a loss occurred on Monday April 17, the FDA has pushed back and requiring additional clinical trials and safety data for the drug baricitinib used to treat rheumatoid arthritis. However, the company acquired in 2017 Boehringer Ingelheim Vetmedica and CoLucid Pharmaceuticals bringing feline, canine and rabies vaccines and lasmiditan to treat migraines to the product portfolio. S&P projects that the 2017 earnings per share estimate to be above the peers which is great news for the company with expectations to launch 20 new products from 2014 to