Creative Austerity At Eli Lilly
Count Eli Lilly as the latest pharmaceutical casualty. On Oct. 11, it announced plans to eliminate 4,000 jobs, amounting to 20% of its work force. The company is also trimming research funding at its Hybritech diagnostics business and may seek ways to push new products out of its development pipeline. Chairman Randall Tobias says that he will consider additional joint-venture research or marketing projects and may even sell some of Lilly's research projects in exchange for products that can generate revenue immediately.