Reaffirming that it remains one of the staunchest advocates of innovation over diversification, Eli Lilly?s (LLY) strategy update yesterday contained few surprises. The company reiterated its intention to continue investing in its pipeline to deliver fresh growth post-patent cliff, and explicitly ruled out moves into new areas like generics or any attempt to buy its way out of trouble with a big buck acquisition.
Big pharma?s productivity problems have prompted a variety of strategic moves and Lilly, along with Bristol-Myers Squibb (BMY) and AstraZeneca (AZN), has largely resisted pressure to add more reliable and less risky revenue generators. The next couple of years will contain crucial tests of conviction as they all attempt to deliver on pipeline promises ? the analysis below suggests investors are still largely declining to bet on success.
Lilly has not completely shunned more stable revenue generators and has invested in what it terms
Complete Story »