Eli Lilly and Company (NYSE:LLY) is a US-based multinational pharmaceutical company. It is the 12th largest pharmaceutical company by revenue and has offices in 16 countries. Its medicines are sold in at least 125 countries including its 8 blockbuster drugs. The company is a member of the S&P 500 and S&P 100 indices, it brought in roughly $5.5 billion in revenue for 2021 and employs more than 35,000 people across its network of research and production facilities.
Eli Lilly and Company was founded in 1876 by Colonel Eli Lilly. The colonel, a veteran of the Civil War, had recently dissolved an unsatisfactory partnership and set on his own to produce and develop medicinal chemicals. Colonel Lilly remained as president until his death in 1898. His charge to his family, company and coworkers was to “take what you find here and make it better and better”. The company is well-known for many drugs, including the first mass-marketing of quinine to treat malaria.
The company brought in $4,470 in its first year and saw that figure grow 10X over the next 3. Among the many innovations during this time period is the addition of gelation coatings for pills which helped set the company up for rapid expansion. The company was incorporated in 1881 as Eli Lilly and Company issuing stock to family and friends. The 1900s brought about more change for the company, change in the form of expansion which included international markets.
Advancements during the war years included increases in efficiency due to increased automation and the development of precision technologies. Among the technologies was pill manufacturing which included injecting medicines directly into a gelation capsule. This method allowed for more exact dosing, setting the standard for modern production. The company produced capsules for itself and sold excess capacity to competitors. Other major advancements include fruit flavorings in medicine, straight-line manufacturing and a method of blueprinting manufacturing tickets to prevent errors.
The modern period saw the company grow and discover new, world-class pharmaceuticals. Today, the company is engaged in the discovery, development and marketing of human pharmaceuticals. It offers a wide range of treatments, including Prozac but is perhaps most noteworthy for its work with insulin. The company is the first to mass produce insulin and has made numerous advances in treating diabetes in the time since. While other drugs are more widely known, its diabetic drugs Basaglar, Jardience, Trulicity, Humalog and Humulin are its top-sellers and contribute the bulk of revenue and cash flow.
Along with Diabetic research, the company also focuses on Alzheimer's, Oncology, Immunology, Obesity and Pain care. At the end of 2022, the company pipeline had 23 compounds in Phase 3 clinical trials and 1 in review. There were another 18 in Phase 2 trials and more than 2 dozen in Phase 1 trials. The average cost to discover a new drug was running at $2.6 billion with a 10-year discovery-to-patient timeline.
