The company also detailed the progress being made in its labs and across its five new business units on an expanding pipeline of innovative molecules and marketed medicines, and provided investors with the company’s financial guidance for 2010.
"In 2009, Lilly has once again exhibited strong performance in a tough environment, and we’ve continued with a series of actions aimed at speeding innovation to patients and delivering greater value to our customers," said John C. Lechleiter, Lilly’s president and chief executive officer.
"Through these actions and more, we are transforming Lilly to compete and to win in an ever more demanding and challenging environment.
“We see a divergence of strategies among our peers to deal with these challenges, including the wave of consolidation this year.
“Many companies are seeking to lower risk by reducing their focus on innovative medicines. This is not our path.
“Our strategy is to create value by accelerating the flow of innovative new medicines that provide improved outcomes for individual patients. We aim to discover, develop, or acquire innovative new therapies – medicines that make a real difference for patients and deliver clear value for payers."
The animal health business unit provides both diversification and growth potential to the company’s operations.
Elanco is currently the sixth largest animal health company in the industry and its sales continue to grow at a rate faster than the overall animal health market, bolstered by recent acquisitions and the launch of its companion animal business. Year-to-date 2009 animal health sales exceeded $850.0 million.
Elanco maintains the top position in the medicated feed additives and dairy segments and also ranks first in research and development output in the US, delivering more new molecules over the past six years than any other company in its industry.
In the companion animal segment, Elanco is growing faster than the competition, driven by the growth of Comfortis.
New product launches
In 2010, Elanco is planning for 7 new product launches and expanded indications, including two new companion animal products.
Elanco is positioned to double revenue in five years with five strategic initiatives:
- Increased investment and industry leadership in innovation;
- Continued growth and increased presence in the companion animal business,
- Greater investment and focus on emerging market opportunities;
- Transforming its manufacturing cost structure to better support innovation growth and emerging market opportunities; and
- A further-enhanced business unit model to amplify "best in industry" employee engagement and focused execution.
With strategic investments in research and development, along with focused efforts to accelerate growth in key emerging markets and the companion animal segment, Elanco is positioned to deliver double-digit annual income growth over the next five years.