Lilly unveils streamlined business structure
pharmafile | May 22, 2008 | News story | Sales and Marketing | lilly, restructure
A simplified and slimmed-down corporate structure has been unveiled by US pharmaceutical firm Lilly, which says it hopes to cut bureaucracy and speed up decision-making.
The company is just the latest to announce such moves, with the need for cost-cutting and changing business models giving pharma leaders the opportunity to re-think their day-to-day processes.
Pfizer, GSK and Novartis are among the companies which have all already begun restructuring, with generally fewer tiers of management involved and with geographical and business unit responsibilities reshuffled.
For Lilly, one of the biggest changes announced is the merging of its global regulatory, medical and patient safety business units.
The company says this unified group will create a single point of accountability for regulatory and medical affairs. Tim Garnett, currently head of global patient safety, will take on the role of chief medical officer and will lead the new organisation.
Europe streamlined
Meanwhile there are also big changes in the company's European infrastructure, with its current four separate areas being merged into just two.
Philippe Prufer will assume the role of vice president and area director of European mid-size as well as central and eastern European markets. In addition, the markets of Africa, the Middle East, and Russia will be combined with the Asian markets (excluding China and Japan) and will be led by Eberhard Ludewigs, who will serve as vice president and area director of this expanded region.
Newt Crenshaw, currently president and general manager of Lilly Japan, will assume the newly-created role of vice president of policy, pricing, reimbursement and access, and international corporate affairs. Crenshaw will be based in Indianapolis and will report directly to Alex Azar, head of corporate affairs. Replacing Crenshaw in Japan will be Alfonso (Chito) Zulueta, currently Lilly's area director for Asia.
The company's leadership structure in the US will also move from having four divisional vice president roles to two new vice president positions with much greater responsibilities. These roles are built around the company's main customer groups: health care professionals (e.g. physicians) and institution-based customers (e.g. hospitals, specialists and third-party payors).
Enrique Conterno, currently head of Lilly's US neuroscience business, will become vice president for health care professional markets. In this role he will lead all Lilly's US efforts aimed at health care professionals, and he will also have therapeutic responsibility for the neuroscience, diabetes and osteoporosis brands. Jack Bailey, current head of US sales and marketing, business-to-business, will become vice president for account-based markets, and he will have responsibility for institution-based customers. Bailey will also have therapeutic responsibility for the oncology, endocrine and cardiovascular brands.
Global marketing and sales
There are also changes to the company's sales and marketing operations, implemented by executive vice president of global marketing and sales Bryce Carmine.
Global marketing and international marketing operations are to be merged and Dan Hasler, currently vice president of global brands, will head up this expanded organisation. In addition, Nancy Lilly, currently vice president of US sales and marketing for specialty products, will be in charge of new product planning and market analytics. In this role she will be responsible for leading new product planning, market research, global pricing and business development.
Finally Rich Pilnik, the company's chief marketing officer is one of several senior figures who are retiring from the company.
The company says the change-over will begin immediately and will be complete by July this year.
"These leadership changes will help to strengthen key aspects of Lilly's operations as we also develop the next generation of leadership for the company," concluded chief executive John Lechleiter.
"I am excited about the improved focus on the customer that these changes will bring, and I am confident that each of these leaders will better enable us to remain a strong and successful company."
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