- Heritage more than 130 years strong : company founded in 1876
- Headquarters located in Indianapolis, USA
- 38,080 employees worldwide
- Clinical research conducted in more than 50 countries
- Research and development facilities located in 8 countries
- Manufacturing plants located in 13 countries
- Products marketed in 125 countries
Eli Lilly and Company produces medicines to meet patients’ health care needs. We believe that it is critical for patients to have access to our products, which save and improve lives. Therefore, Lilly is committed to participating in the political process as a responsible corporate citizen to help inform the debates regarding health care and pharmaceutical innovation globally.
Eli Lilly advocates policies that recognize the value of pharmaceuticals in treating patients and reducing total health care costs. In many instances, pharmaceuticals eliminate the need for surgery and hospitalization, slow or reverse the progress of a disease, prevent a disease from developing, and allow people to return to work sooner.
With the U.S., for example, devoting approximately 15 percent of its economy to health care (as measured by gross domestic product), there is increasing pressure to contain growth in these costs. Innovative and cost-effective pharmaceuticals are an important way to help contain overall health care costs. As a result, society benefits as health care solutions become more cost-effective and people live longer, healthier, and more active lives.
At Lilly, we believe that relying on the judgment of health care decision-makers who provide and pay for health care is the way to fully realize the value of pharmaceuticals. Excessive or inappropriate government regulations, including cost controls, stifle the innovation necessary to bring the next generation of lifesaving drugs to customers. Applying market principles to the health care system can ensure the delivery of high-quality, lower-cost health care by encouraging innovation and efficiency, which ultimately benefit patients
Government actions such as price controls, importation, and access restrictions impact availability of medicines to patients and Lilly’s ability to invest in innovation. Lilly maintains a comprehensive government relations operation to monitor and influence the public policy-making at both the state and the federal level. Through our policy and lobbying activities, we focus on a number of key issues of concern to Lilly and our industry, including:
Affordability and Access
- Lilly produces medicines to meet patients’ health care needs, and we believe that it is critical for patients to have access to our products, which save and improve lives. Access to medicines is a function not only of price but of health care coverage, particularly in the United States. For this reason, Lilly supports finding ways to increase the availability of affordable health insurance for all.
- Lilly recognizes the importance of containing rising health care costs triggered by aging populations, increased public expectations of the health care industry, and in some countries, the need to meet budgetary restrictions and/or reduce budget deficits. We believe that innovative pharmaceuticals are part of the solution to – not the cause of – this problem. Governmental efforts to reduce drug access and prescribing are not effective and ultimately hurt patients. Simply put, they shift costs to other components of the health care system. Pharmaceuticals, when properly integrated with other methods of treatment, lead to lower overall health care costs.
- The research-based biopharmaceutical industry is uniquely qualified to discover, develop, and produce lifesaving innovative medicines for patients who need them. Measures to artificially control industry growth and drug prices are counterproductive to that effort. Government-mandated restrictions reduce the return on investment needed by biopharmaceutical firms to engage in the costly research and development of new cost-effective products. The competitive market forces that exist in the biopharmaceutical industry are the best insurance against excessive drug prices and a key driver of continued discovery and development of innovative drugs that help patients. We believe that integrated, private-sector coverage for drugs is the best way to ensure access by all patients to the miracles of modern medicines.
U.S. Health Care Reform
- Lilly supports access to affordable, private health care coverage for all Americans.
- With a diverse population of more than 300 million people, all with individual needs, there is no single solution for health care reform in the United States.
- Effective health care policy is contingent on a balance between access, quality, and cost.
- Lilly supports health care reform packages that extend health care access to those who currently lack it while preserving or improving access for those who have it today. This includes improving outreach to enrol individuals in public programs for which they are eligible.
- Lilly prefers free-market solutions over government-managed systems. Giving Americans the same tax benefits whether they purchase health care coverage individually or through their employer, enacting medical liability reforms, and expanding Health Savings Accounts (HSAs) and other consumer-directed coverage models, would encourage participation in the health care system.
- Lilly supports patient-centred practices that enable individuals, along with their physicians and health care providers, to make informed choices regarding their health care. Health insurance benefit designs should foster the physician-patient relationship and recognize the essential role of prescription medicines and other innovations in providing cost-effective health care.
- Lilly does not support single-payer systems. These government systems have been given numerous chances to work in other nations, and evidence suggests they are far from ideal. Single-payer systems restrict access, ration care, eliminate competition, and hinder quality improvements by limiting innovation.
- The government’s role should be primarily one of financial and administrative support for the health care infrastructure, e.g., subsidizing and facilitating standards for rapidly implementing medical information technology, setting quality standards, and supporting a safety net.
- Lilly Principles for U.S. Health Care Reform include:
- Principle 1: Lilly supports reforms that protect and encourage patient choice in the management of their health and the health of their families.
- Principle 2: Lilly supports health care reforms that enable patients as responsible participants in their health, while requiring accountability to patients by all participants in the health care arena – including insurers, health care providers (HCPs), payers, regulators, and innovators.
- Principle 3: Lilly supports health care reforms that protect and promote free-market competition by rewarding providers and innovators based on quality and value provided to the patient.
- Principle 4: Lilly supports reforms to U.S. health care that improve the quality and efficiency of health care delivery, thus reducing waste and system costs.
Integrated Health Care Systems
- In keeping with our commitment to provide customers with effective results and lower costs, Lilly encourages the transition from the current component-based health care system to a comprehensive integrated health care delivery system. The traditional approach of trying to control costs of each treatment element ignores the fact that limitations on one element may lead to increased patient morbidity or mortality, resulting in an increase in total health care costs.
- For example, while a new drug may cost more than an older one, the benefits of the new therapy may far outweigh this increased expense by eliminating other expenses, such as hospitalization. We believe that the best approach to treatment is to consider the whole patient and to use whatever combination of interventions and therapies is most likely to produce optimal clinical and economic results. No element of the health care delivery process can work alone.
- The Medicare Modernization Act of 2003 (MMA) commissioned the Agency for Healthcare Research and Quality (AHRQ) to conduct comparative clinical effectiveness (CCE) reviews.
- Lilly believes that patients, physicians, and other stakeholders in the health care system should have access to objective, scientifically-based, and relevant information on the comparative clinical effectiveness of different diagnostics, therapies, procedures, health care delivery processes, and health policies in specific patients and populations. The evidence should be based on sound comparative research that is interpreted objectively, considering the inherent limitations of such studies and the need to recognize the potential differences across populations.
- In addition, Lilly believes there is an opportunity to evaluate health benefit design through comparative research, as benefit design plays a significant role in the health care delivery process (e.g. the impact of a tiered benefit structure on patient access and overall health outcomes).
- An inclusive and vibrant CCE research community, including academic centers, private health plans, pharmaceutical and device companies, hospitals and other providers, and other qualified research bodies, can create improved standards of care and better quality outcomes for patients.
- CCE research must not be used merely as a policy instrument for cost control that limits access to appropriate individual needs-based care for patients.
- There is a spectrum of complexity among biologic molecules and their manufacturing processes that determines whether, and to what degree, abbreviated approval requirements for Follow-On Biologics (FOBs) are scientifically feasible.
- Lilly believes any legislation that would create a new regulatory pathway to authorize FOBs should protect patient safety and product integrity, respect proprietary information, and contain intellectual property provisions that help ensure the research and development of innovative, lifesaving biologic products.
- FOB approval standards, including clinical trials and manufacturing requirements, must be sufficiently rigorous for both pioneer and follow-on versions of biologic products to assure that the patient will receive a safe, pure, and potent product.
- The important differences between a pioneer biologic and a FOB should be transparent so that health care providers and their patients can make the decision as to which medicine is best for them.
- Lilly supports strong and effective protection of intellectual property rights, including patent protection for pharmaceutical products. The pharmaceutical industry is dependent upon this protection, which grants the inventor of a new product an exclusive, yet limited, period to develop and market the product. Without this protection, pharmaceutical research companies would not be able to recoup the approximately $800 million to $1.3 billion that they invest, on average, to discover and develop each new drug. Lack of strong intellectual property rights would have a chilling effect on the industry’s ability to bring new lifesaving drugs to patients around the world.
- Lilly recognizes the importance of international efforts that seek to improve and harmonize intellectual property protection throughout the world. We continue to support international trade agreements that facilitate the implementation of effective patent protection for pharmaceutical products in important markets that formerly provided inadequate protection. Lilly also recognizes the significant contributions that U.S. trade laws and the World Trade Organization (WTO) rules have made in the area of intellectual property protection. We support their continued use to encourage developing countries to provide effective patent protection for pharmaceutical products. Adherence to WTO standards of intellectual property protection stimulates economic growth (through increased investment and retention of local talent) and ensures the availability of innovative medicines.
Legalizing the importation of prescription drugs will not result in significant savings for government or private payers or consumers
- Over the last few years a number of bills have been proposed that would legalize the commercial and personal importation of unapproved prescription drugs from foreign countries as a way to obtain cheaper medications. However, legalizing the importation of prescription drugs will not result in significant savings for government or private payers or consumers. European countries have seen very little cost savings with legalized importation, and the U.K. (one of the largest importers) has seen less than 2 percent savings.
- Legalizing the importation of prescription drugs will also import foreign price controls and have a negative effect on the development of new medicines.
- Most importantly, Lilly understands that the importation of prescription drugs will put U.S. patients at risk of receiving counterfeit or otherwise adulterated products.
Medicare Part D- Non-Interference
- The non-interference provision of the Medicare Prescription Drug, Improvement, and Modernization Act bars the Secretary of Health and Human Services from interfering with the negotiations between drug manufacturers, pharmacies, and sponsors of prescription drug plans, or from requiring a particular formulary or price structure for covered drugs.
- Many leaders in business and government understand that this provision is central to allowing the private sector to effectively contain costs, while others have attacked the provision and believe that the government should use its buying power to attempt to control spending. A number of bills have been introduced since the Medicare Modernization Act was passed in December 2003 that would repeal or amend this provision.
Counterfeit drugs: The growing threat to patients
Counterfeit medicines pose a real and growing threat to patient safety and worldwide public health. Pharmaceutical counterfeiting crosses geographic boundaries and impacts patients suffering from a variety of diseases. It is a crime that generates large profits for the counterfeiters even as it steals one of medicine’s most important ingredients: trust.
In every part of the world, patients are unknowingly encountering counterfeits that look like the actual medicine — from the package to the size and colour of the pill. These are dangerous imposters that may contain inactive and useless ingredients or even toxic substances. In each case, they are unreliable. In some cases, they can cause harm to patients, including death.
Drug counterfeiters have steadily expanded their reach to making illegitimate versions of lifesaving medicines, including cancer medicines, cholesterol-lowering drugs, antibiotics, hypertension medicines, hormones, steroids, and copies of many commonly used pain killers and antihistamines.
In some parts of the developing world, counterfeit medicines for the treatment of life-threatening conditions such as malaria, tuberculosis, and HIV/AIDS are now threatening public health on a massive scale.
With so much at risk for patients, Lilly believes it’s time to act on this issue for what it is: a serious problem that needs serious answers.
Lilly is actively engaged in efforts to combat counterfeiting in order to protect the health and safety of our patients. These initiatives include:
- Securing the integrity of Lilly products throughout the supply chain
- Deterring criminal activity
- Partnering with government and non-government organizations and trade associations to strengthen enforcement and raise awareness
This global problem requires a sustained, long-term commitment. To stop this dangerous trend, collaboration and cooperation are critical, and Lilly is committed to working with a wide range of public and private partners
Elli Lilly Membership in Associations
Lilly is committed to supporting organizations who champion public policies that contribute to pharmaceutical innovation and health patients.
- Animal Health Institute (Board Seat)
- Biotechnology Industry (Board Seat)
- Business Round Table
- Central Indiana Corporate Partnership (Board Seat)
- Greater Indianapolis Chamber of Commerce (Board Seat)
- Healthcare Leadership Council (Board Seat)
- Indiana Chamber of Commerce (Board Seat)
- National Association of Manufacturers (Board Seat)
- Ph RMA (Board Seat)
- U.S. Chamber of Commerce