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Eli Lilly has announced that it is making major changes to it manufacturing operations.

PharmaLive: Lilly Announces Strategic Changes to its Global Manufacturing Operations

They are stopping construction of an insulin manufacturing plant in VA and are offering voluntary exit program for up to 250 employees on the small molecule program at their facility in Lafayette, IN which currently employs 1,000 folks.

I would say that I think Lilly really missed the boat several years back when they were touting their Humulin insulin. My wife is diabetic and so I appreciate their wanting the highest quality and best product. However, I think that they missed the convenience aspect that Novo Nordisk picked up on wit hthe whole insulin pen concept.

Like some other big pharma companies, Lilly is choosing to concentrate on the high margin biotech products ad plans on launching one new biological product each year starting in 2010. This is a trend that I definitely think will continue espoecially for any of the big pharma that have a major biologics program. This includes Bristol-Myers Squibb, Schering Plough, and Lilly. I personally think this is a bad idea and think a balance would be better in the long run. Dumping small molecules to concentrate on the high margin biologics is short sighted,. I am convinced there will eventually be a biogenerics industry(hopefully sooner rater than later) and that while it might be possible to get the high margins for biologics for some time, those will eventually degraed especially with all the consumer and political pressure on the pricing of medicines.

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