Monday, August 11, 2008

Eli Lilly and Co. To Sell Greenfield Laboratories

In an update from a previous post, Eli Lilly, after deciding to cut costs as a result of the current economic climate, choose to sell their Greenfield Laboratories in Hancock County, Indiana. Covance, a contract research organization will be purchasing the lab for $50 million. While the lab was previously off limits for use by outside sources, with the change of hands, Covance will allow outsiders to come in and use the facilities for a fee. This article quotes Joe Herring, CEO and Chairman of Covance:

Today's announcement represents an innovative approach to the R&D productivity challenges our pharmaceutical clients are facing,

Herring was also quoted as saying that it

"carves a new path to growth for both Covance and the CRO industry.

The article continues by mentioning that Herring also was noted as stating that this marks a shift in dynamic where companies are changing from being a “fully-integrated pharmaceutical company” to a “fully-integrated pharmaceutical network”.

This new development is in line with what many of our previous posts have said about the changing environment for pharmaceutical companies who are starting to outsource more of their research and development to contract research organizations.

No comments:

Post a Comment