Lilly CEO Says Industry, Public Policy Must Pave Way For Innovation

By Eli Lilly And Company, PRNE
Wednesday, February 9, 2011

Lechleiter Delivers Keynote Address at 2011 Pharma Summit

LONDON, February 10, 2011 - A new approach to research, along with public policies that support
medical innovation, will help biopharmaceutical companies address stubborn
diseases with potentially devastating personal and financial consequences,
such as cancer and Alzheimer's disease, according to John Lechleiter, Ph.D.,
chairman, president and CEO of Eli Lilly and Company (NYSE: LLY).

Lechleiter made his remarks Thursday in London during a keynote address
at The Economist's 2011 Pharma Summit: Reinventing Pharma for a New
Generation. During his talk, Lechleiter said two imperatives are needed to
secure the future of the research-based pharmaceutical industry: changing the
way companies conduct research, and public policies that promote an
environment in which medical innovation can flourish.

The burden of several diseases is soaring in many countries, including
the U.K.

According to the Alzheimer's Research Trust, for instance, more than
800,000 people in the U.K. are directly affected by dementia at a cost of 23
billion pounds Sterling
per year.

And yet, just when the world desperately needs more new medicines for
diseases like Alzheimer's, "our industry is taking too long, we're spending
too much, and we're producing far too little," Lechleiter told the audience.

Lechleiter said the case for biopharmaceutical research and new
medications is compelling. Specifically, he noted that:

    -- Innovative medicines have proven themselves time and again to be the
       most effective way to reduce costs and improve quality in health care.
    -- Treatments for diseases that remain unconquered, like cancer and
       Alzheimer's, most likely will come from laboratories of
       biopharmaceutical companies.
    -- Even diseases that are being treated today, like diabetes, require
       better solutions.

"Ironically, the crisis in our innovation model comes at a time when we
have vastly more scientific knowledge and data than ever before," Lechleiter
said. "But unless we change the way we do research, we won't translate this
knowledge into advances for patients. In the face of diminishing results, we
can't simply perform the same old rituals and hope for a different outcome."

Specifically, Lechleiter stressed the need for research-based
pharmaceutical companies to be more networked, global, and entrepreneurial to
bring innovative medicines to patients faster and at lower costs. Such a
global network is enabling Lilly to strengthen its own R&D capabilities,
while attracting molecules, funding, and expertise from partners - creating
shared investment, risk, and reward, along with greater efficiencies.

Lechleiter said the new approach to research will be successful only if
matched with regulations that support an environment of innovation.

"Even as we rebuild our R&D engine, we must build an environment where
pharmaceutical innovation can thrive," he said. "As pressures on health care
systems around the world continue to grow, we will continue to make the case
that innovation is imperative, and to advocate for reforms that promote
innovation rather than penalize it."

Currently, government leaders in the U.K. are debating health care reform
options to ease the stress on tightening budgets. Lechleiter said the new
approach to research will be successful only if matched with regulations that
support an environment of innovation.

Biopharmaceutical research, Lechleiter said, has also preserved jobs in
the U.K. and other developed countries. In the U.K., there are 72,000 direct
jobs in the biopharmaceutical sector and 200,000 indirect jobs. At 12 million
pounds each day, the biopharmaceutical industry invests more in R&D than any
other sector in the U.K.

Equally important have been the medical advances: in the U.K. alone,
average life expectancy increased by 30 years from 1901 to 1999.

"Indeed, encouraging medical innovation needs to be a key purpose of
health care reforms in both the United States and the United Kingdom,"
Lechleiter said. "We must continually make the case for innovation through
our words, but more importantly, through our actions and the value we bring
to patients through innovative medicines."

About Eli Lilly and Company

Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of pharmaceutical products by applying the latest research from its
own worldwide laboratories and from collaborations with eminent scientific
organizations. Headquartered in Indianapolis, Ind., Lilly provides answers -
through medicines and information - for some of the world's most urgent
medical needs. C-LLY

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Greg Kueterman (Europe), +1-317-432-5195, Ed Sagebiel (U.S.), +1-317-433-9899

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