Indianapolis-based Eli Lilly and Co. (NYSE: LLY) is reaffirming previously-announced financial expectations through the remainder of the decade, including at least 5 percent average annual revenue growth. Despite shelving a once-promising potential Alzheimer’s disease treatment because of disappointing late-stage clinical trial results, the company says it still has the potential to launch 20 new products in the period between 2014 and 2023. Inside INdiana Business has learned that dropping the development of solanezumab will result in 500-550 job cuts.
IIB has learned most of those cuts will be sales positions added in anticipation of positive results for the treatment.
Lilly says it is expecting 2017 revenue between $21.8 billion and $22.3 billion, with growth driven by recently-launched products. The company says it has launched seven products since 2014, with one under regulatory review. New products include Trulicity (diabetes), Cyramza (oncology), Taltz (psoriasis) and Lartruvo (oncology). Diabetes treatment Basaglar is expected to launch in December 2017.
While Lilly will no longer seek regulatory approval for solanezumab, the company says it remains committed to Alzheimer’s care and has multiple assets in clinical development. Last week, Lilly announced a codevelopment agreement with AstraZeneca PLC (NYSE: AZN) involving an antibody currently in Phase 1 trials.
In July, Lilly Chief Executive Officer John Lechleiter announced plans to retire in January. Longtime Lilly executive Dave Ricks will become CEO on January 1 and chairman of the board on June 1. Lechleiter will be a guest this weekend on Inside INdiana Business Television.