Eli Lilly

From SourceWatch

Eli Lilly and Company is a pharmaceutical company based in Indianapolis, Indiana. In 2006, it had revenues of $15.7 billion and profits of $2.6 billion. It is the 149th largest corporation in the United States. The company manufactures and distributes pharmaceutical products for cancer, cardiovascular, central nervous system, endocrine and infectious diseases and disorders. Eli Lilly is perhaps best known for the development and distribution of the anti-depressant Prozac. The company is publicly traded on the New York Stock Exchange. ^[1], ^[2] In 2007, the company's sale were 18.6 billion. The company has 40,000 employees. ^[3]

Contents 1 Animal testing 1.1 Animals by species, numbers & location (United States) 1.2 Facility information, progress & USDA-APHIS reports 1.3 Contract testing 2 Monsanto's U.S. Posilac (rBGH) Division sold to Eli Lilly 3 Disclosure initiatives 4 Controversies 5 Tobacco issues 6 Political contributions 7 Lobbying 8 Personnel 8.1 Lobbyists 8.2 Selected members of the Board of Directors 8.3 Executive Compensation 9 Contact 10 Articles & sources 10.1 SourceWatch articles 10.2 References 10.3 External articles 10.4 External resources

Animal testing

Eli Lilly does animal testing.

Animals by species, numbers & location (United States)

• Eli Lilly, Indianapolis, Indiana ^[4]

Facility information, progress & USDA-APHIS reports

This facility performed animal experiments involving pain or distress but no analgesics, anesthetics or pain relievers were administered. For links to copies of this facility's USDA-Animal & Plant Health Inspection Service (APHIS) reports, indicating species, number of animals used and other information, see also Facility Reports & Information, Eli Lilly. ^[5]

Contract testing

Eli Lilly contract tests out to SNBL. ^[6] SNBL is an international contract research organization (CRO). Firms hire CROs to conduct toxicity animal testing for agrochemicals, petrochemicals, household products, pharmaceuticals and toxins. SNBL has a history of gross animal welfare violations. See also SNBL.

Monsanto's U.S. Posilac (rBGH) Division sold to Eli Lilly

In August 2008, Monsanto sold their Posilac division to Eli Lilly and Company for $300 million (who exclusively sold Posilac outside the US for 10 years before the acquisition.) ^[7], ^[8] Posilac creates additional Growth Factor One (IGF-1) in milk (a growth hormone which is identical in cows and humans). IGF-1 is considered to be a fuel cell for cancer growth and has been identified in the rapid growth cancer. The Food and Drug Administration (FDA) insists that IGF-1 is destroyed in the stomach. ^[9] However, if that were true, the FDA has proven that breast feeding cannot work. ^[10] It is worth noting that rBGH is banned in every industrialized country in the world except for the U.S., Mexico and Brazil. According to Dr. Michael Hanson of the Consumers Union of the U.S., there is strong scientific evidence to support potential health hazards of rBGH and a case for labeling dairy products that contain rBGH. ^[11] The FDA approved the use of bovine growth hormone (rbGH) for cows on February 4th, 1994. Both Europe and Canada turned down Monsanto's application for approval. ^[12] See also Food and Drug Administration, section 3.

Disclosure initiatives

In September 2008, Eli Lilly announced that it will begin reporting its payments to doctors in late 2009, using an online database. But the disclosure is limited to payments of more than $500 made for giving talks or advice to the company; payments for other services or gifts will not be included. Payments made before 2009 will also not be disclosed. Eli Lilly president and CEO John Lechleiter explained the move by stating, "We've learned that letting people see for themselves what we're doing is the best way to build trust." ^{[13] [14]}

Lilly announced its new registry of payments to doctors comes as Congress considered the Physician Payments Sunshine Act of 2007. The bill would require disclosure of any drug company payment to doctors of more than $25, whether the payment was for food, travel, entertainment, gifts, consulting fees or any other purpose. ^[15]

In May 2007, as the U.S. Senate Committee on Finance was investigating drug company grants to patient groups, Eli Lilly began disclosing its grants to U.S. nonprofit groups and educational institutions. ^[16]

Controversies

In 1994, the Food and Drug Administration (FDA) chastised Lilly for using alcoholics in a drug study.[2]

In late March 2004, the U.S. Attorney in Pennsylvania announced it was investigating Lilly's marketing practices for three of its big selling drugs - Zyprexa ($4.3 billion), Evista ($922 million) and Prozac ($645 million).[3]

In August 2007, the St. Paul Pioneer Press reported that Minnesota spent $28 million on the Eli Lilly antipsychotic drug Zyprexa in 2005, for poor and disabled residents. Unlike other states, Minnesota does not require prior authorization for antipsychotic drugs, a practice that Eli Lilly opposes. Lilly funds Minnesota's state contract with Comprehensive NeuroScience, a service that "identifies doctors who are prescribing psychiatric drugs outside of recommended guidelines." ^[17] According to the Pioneer Press:

"In fact, none of the states with Lilly partnerships use prior authorization to manage antipsychotic drugs. ... Wisconsin had a contract with Lilly last year, when the state's Medicaid agency placed antipsychotic drugs, including Zyprexa, on the prior authorization list. State officials were informed shortly thereafter that Lilly was canceling the program."

Minnesota also requires "dose optimization", often resulting in less profit for drug manufacturers; for other antipsychotic medications, but not for Zyprexa. ^[18]

Tobacco issues

In 1989, Eli Lilly started marketing an anti-depressant drug called fluoxetine (Prozac) that, in addition to elevating mood, was noted to help smokers quit. [4][5]

Political contributions

Eli Lilly gave $582,350 to federal candidates in the 05/06 election cycle through its political action committee (PAC) - 27% to Democrats, 71% to Republicans. ^[19]

Lobbying

The company spent $3,700,000 for lobbying in 2006. $720,000 of this total went to eight outside lobbying firms, including Barbour, Griffith and Rogers, OB-C Group, Ricchetti Inc, and Capitol Hill Consulting. ^[20]

Personnel

Key executives and 2006 pay: [21]				Options exercised
Sidney Taurel, Chairman and Chief Executive Officer		$1,650,000		$3,190,000
John C. Lechleiter, Chief Operating Officer		$1,110,000		$269,000
Derica W. Rice, Chief Financial Officer		$615,000		$57,000
Steven M. Paul, Executive Vice President of Science and Technology		$916,000		$59,000

Lobbyists

• Kathryn Dickey Karol is Assistant Vice President of Global Government Affairs ^[22]

Selected members of the Board of Directors

• J. Michael Cook, Former Chairman and Chief Executive Officer, Deloitte & Touche LLP, former board member AT&T, Fidelity, and Northrop Grumman
• George M.C. Fisher, Former Chairman and Chief Executive Officer, Motorola and Eastman Kodak Co. (Kodak)
• Ellen R. Marram, Also a Director of Ford Motor Company and The New York Times Company
• Kathi P. Seifert, Retired Executive Vice President, Kimberly-Clark Corporation
• Karen Horn ^[23]

Executive Compensation

According to Fierce Pharma, Eli Lilly's CEO, Sidney Taurel, was the ninth top wage earner in 2007 among pharmaceutical CEOs.

• Total Compensation: $13M
• 2007 Revenue: $15.7B
• 2006 Revenue: $18.6B
• Change: -15%

"Taurel earned $1.7 million in base salary in 2007, up from $1.6 million in 2006. However, his overall pay was down, from $15.2 million in 2006 to $13 million last year. He pulled in $7.04 million in stock and options, $4 million in incentives, and $215.044 in other compensation, which included $107,105 for use of the company's aircraft."^[24]

Contact

Lilly Corporate Center
Indianapolis, Indiana 46285
USA
Phone: 317-276-2000

Fax: 317-276-4878

Web address: http://www.lilly.com

Articles & sources

SourceWatch articles

• Angie Stone & Eli Lilly
• Animal testing
• Eli Lilly's Grants and Contributions (US)
• Food and Drug Administration
• Monsanto
• Meat & Dairy industry
• Pharmaceutical industry
• SNBL
• The Homeland and Lilly Protection Act
• Zyprexa

References

External articles

• Courtenay Edelhart, "Eli Lilly & Co.:A Firm Foundation", The Indianapolis Star, April 18, 1999.
• "Eli Lilly Exec to Head OMB", United Press International, December 20, 2000.
• Bethany McLean, "Prozac: A Bitter Pill", Fortune Magazine, August 13, 2001.
• "Lilly Launches Third Venture Capital Fund, Media Release, January 12, 2004.
• "Lilly in marketing probe", PMLive.com, March 30, 2004. (PMLive is the on-line version of the trade magazine Pharmaceutical Marketing).
• Jonathan Weisman, "Drugmakers Win Exemption in House Budget-Cutting Bill", Washington Post, November 30, 2005; Page A08.
• Richard Knox, "Report: Lilly Promoted Drug Under False Pretenses," All Things Considered/NPR, October 18, 2006: "A whistleblower report in the New England Journal of Medicine accuses the company of initiating false reports of a shortage of the drug, Xigris." re Surviving Sepsis Campaign used the P.R. firm Belsito and Company, which "created the message that doctors were being forced to ration Xigris because of its high cost."
• Alex Berenson, "Drug Files Show Maker Promoted Unapproved Use,", New York Times, December 18, 2006.
• Fred Gardner, "Exposé as Inoculant: HRT, Zyprexa , Lilly and the Death of Jack", Counterpunch, December 23/24, 2006.
• Jeremy Olson, "Minnesota / Lilly link to state program questioned: Critics see a conflict of interest in drugmaker's health plan role," Pioneer Press (St Paul, MN), August 20, 2007.
• "Lilly to Publish Information on Grants and Contributions", Media Release, May 1, 2007. See Lilly's Lilly grant registry here.
• Adam Creswell, "Eli Lilly fined $60,000 over Cialis spin", The Australian, July 5, 2008.

External resources

• Eli Lilly, Satan's Chemist, Whale, accessed August 2009

This article may include information from Tobacco Documents Online.