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Lilly and Covance form strategic alliance they call a “win-win” for themselves and patients
INDIANAPOLIS—Senior executives from Eli Lilly and Co. and Covance Inc. announced Friday that the first year of their "landmark alliance" has been a win-win for both companies, enabling Lilly to expedite the flow of innovation within its pipeline in order to provide improved outcomes for individual patients.
Executives from both companies announced key milestones of their first-year partnership as part of an Indiana Life Sciences Collaboration Conference Series titled "Effective Collaboration: A Study in Three Acts," produced by the Indiana University Kelley School of Business and its Center for the Business of Life Sciences in collaboration with the event hosts Barnes & Thornburg LLP. Successes from the first year included significant advances in growing the Greenfield, Ind., site, helping speed innovation to patients, and driving down the cost of drug development:
"The passion at Lilly and Covance for helping patients is evident," adds Dr. Andrew Dahlem, vice president Lilly Research Laboratories (LRL) Operations/LRL Europe. "With the Lilly/Covance model, everyone on the team understands the end goal and their role in it, and because of this, has a greater sense of urgency and personal pride in advancing the molecule to the next stage."
Covance will continue to invest in its Greenfield site, in order to grow it into a "world-class" research organization that could service the drug development needs of all pharmaceutical and biotechnology companies.
"This strategic alliance has proven it's a win for Lilly in terms of advancing of pipeline, in terms of job opportunities for Lilly employees and for the state of Indiana, with Covance continuing to grow its business. I also see it as a win for patients—those who will benefit from new and better treatments achieved from the speed this alliance is generating and through the cost reductions Lilly is achieving," says Bart Peterson, Lilly senior vice president corporate affairs and communications.
Lilly and Covance entered into a long-term strategic alliance in August 2008, in which Covance acquired Lilly's preclinical research facility in Greenfield for $50 million. As part of the agreement, Covance hired 264 former Lilly employees, and Lilly committed to providing $1.6 billion in work to Covance over 10 years for a broad range of drug development services. Covance also assumed responsibility for all of Lilly's toxicology testing and discovery support activities at Greenfield.