Lilly CEO: No Plans For Separate Follow-On Biologics Unit
May 29 2009 - 6:05PM
Dow Jones News
Eli Lilly & Co. (LLY) has no plans to form a new unit
devoted to copycat versions of other companies' biotechnology-style
drugs, but it may selectively pursue making drugs that improve upon
existing biologics, the pharmaceutical company's chief said
Friday.
Chief Executive John Lechleiter told Dow Jones Newswires "there
may well be a place for follow-on biologics in certain parts of our
portfolio, but we're not interested in developing a follow-on
biologics business per se."
Lechleiter's remarks came in a telephone interview from Orlando,
Fla., where he's attending a major cancer meeting, and they further
clarified Lilly's strategy for pursuing follow-on biologics.
He first broached the possibility of Lilly's entry into
follow-on biologics in December, when asked about rival Merck &
Co.'s (MRK) announcement that it would form a new division devoted
to making follow-on biologics. At that time, Lechleiter said Lilly
was "very much considering" that, but had no firm plans.
One form of follow-on biologics, "bio-similars," would be
generic versions of existing protein-based drugs, but there is
currently no regulatory pathway in the U.S. for their approval.
Legislation is in the works in Congress to establish such a
pathway, and Lechleiter said Lilly would assess the prospects for
this kind of business more intently once a pathway is in place.
Meantime, Lechleiter said Indianapolis-based Lilly was more
likely to selectively pursue another type of follow-on biologic --
what he and some other industry insiders have called "bio-betters."
These would be similar to existing biotech drugs, but different
enough to qualify for regulatory approval as new biologic entities
under existing regulations.
"They could in the best case be better versions of existing
biologics," Lechleiter said.
Separately, Lechleiter said Lilly remains interested in
acquisitions to build its animal-health business, potentially
including assets that may have to be divested by Pfizer Inc. (PFE)
and Merck & Co. (MRK) in order for those companies to gain
antitrust clearance for the pending acquisitions of Wyeth (WYE) and
Schering-Plough Corp. (SGP), respectively.
-Peter Loftus; Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com