Eli Lilly: Recreating Drug Discovery for the 21st Century

Abstract

This MIT Sloan Management case study highlights strategic challenges for Eli Lilly who are facing changes in the structure of the pharmaceutical industry as a result of new science and untenable cost structures, and Eli Lilly's long-range strategy involving the development of tailored drugs. Learning Objective: A follow on case to "Lilly’s Project Resilience", although it can also be taught as a stand alone case. Designed to explore the issues inherent in trying to implement a significantly different strategy without investing in significant organizational change. Explores the choices Lilly has made to invest in "tailored therapeutics" and asks the students to consider whether they will lead to success. This case study is part of the MIT management studies "Industry evolution" stream. Industry evolution is the study of how industries begin, grow, mature and adapt to changing business environments.