01/29 08:33 INTERVIEW-Lilly<LLY.N>plans for life after Prozac
By Marcel Michelson
PARIS, Jan 29 (Reuters) - Eli Lilly and Co., the world's number eight
drugs company in market value, is gearing up for life after the 2003 patent
expiry of its Prozac blockbuster but is unlikely to seek a major merger with
another pharma group.
Sidney Taurel, the chairman, president and chief executive, said Lilly
looked to new products to make up the loss of its Prozac monopoly. Many
recent mergers in the industry had not created long-term shareholder
value, he told Reuters in an interview.
One product planned for launch in 2002 is a challenger to Pfizer's
<PFE.N> Viagra developed in a joint venture with ICOS Corp <ICOS.O>.
"It is still in the early stages but it looks like it may work as well as Viagra
but without having some of the problems of Viagra, (such as) headaches
and cardiovascular problems," Taurel said.
Eli Lilly, named after its founder who created the firm in 1876, on
Thursday reported a 24 percent rise in 1998 net income to $567.3 million.
On Monday, it settled a patents challenge to its Prozac drug which makes
up 28 percent of sales. Its profits contribution was higher but Taurel did
not specify.
Taurel said it was now unlikely there would be generic versions of Prozac
until 2004: "We won a big battle."
Barr Laboratories Inc <BRL.N> and Novartis AG <NOVZn.S> unit Geneva
Pharmaceuticals Inc are appealing a judge's decision to dismiss their
challenge to Lilly's "composition of matter" patent on Prozac which
expires in February 2001. This appeal procedure is expected to take
some 12 to 18 months.
A challenge to the "mode of action" patent on Prozac, expiring in
December 2003, is not expected to start until the first appeal is finished.
The second challenge is by Teva <TEVI.TA> of Israel, Zenith-Goldline and
Reddy <REDY.BO> of India.
Taurel said the Prozac patent could be extended by another six months
as it features on a special list of drugs backed by the U.S. Food and
Drugs Administration regulator.
"We won't see generics until 2004 and by then our dependance on
Prozac will be reduced," he said.
Lilly has a three-pronged strategy for life after 2003.
* New applications of Prozac such as a patented once-a-week
formulation and combinations with other drugs and the launch of new
molecules to treat depression.
* Put more research and development money on promising molecules to
accelerate their market launch, with among the most promising ones a
treatment for hyperactivity disorder, diabetes and versions of Evista for
cancer treatment.
* More licencing deals such as the partnership with Takeda Chemical
Industries <4502.T> of Japan on a diabetes drug.
Taurel saw no need for Lilly to participate in the recent spate of drugs
mega-mergers.
"We want to continue alone but supplemented by partnerships,
acquisitions of molecules and technologies, and potential targeted
acquisitions to increase our marketing and distribution capacity in areas
outside of the United States where we are less strong, like in Japan,"
Taurel said.
The company was also weak in Germany and Italy, he said. |
