Eli Lilly Expands Investment in China Amid Growing Pharmaceutical Market

US pharmaceuticals firm Eli Lilly and Company plans to further invest in China as the country's market is expected to become one of the world's largest in the next five to ten years. The company's executive vice-president, John C. Lechleiter, said China is "very strategically important" for the company, citing the country's growing demand for pharmaceuticals, particularly for erectile dysfunction (ED) drugs. Eli Lilly aims to introduce nine new products, including its ED drug Cialis, to the Chinese market over the next five years.

Key Takeaways:

• Eli Lilly plans to introduce nine new products, including Cialis, to the Chinese market over the next five years.
• The company's ED drug Cialis is expected to dominate the market share in other Asian countries and regions, including South Korea and Taiwan.
• Eli Lilly has a research centre in Shanghai and a pharmaceuticals manufacturing plant in Suzhou, Jiangsu Province, employing 700 people.
• The company's revenue skyrocketed to US$525 million in 2004 from US$203 million after Cialis was introduced to the US market.
• More than half of men aged over 40 in China are afflicted with some degree of ED.
• Foreign companies like Pfizer and Bayer are also vying for a share of the anti-impotence drug market in China.
• Eli Lilly is concerned about rampant imitation and counterfeit of its products in China's pharmaceuticals sector.

Statistics:

• More than half of men aged over 40 in China are afflicted with some degree of ED.
• Eli Lilly's revenue skyrocketed to US$525 million in 2004 from US$203 million after Cialis was introduced to the US market.
• The company's ED drug Cialis has already grabbed much of the market share in other Asian countries and regions, including South Korea and Taiwan.
• Over half of all Viagra pills available in China are counterfeit.

Sources:

• Reuters, April 12, 2004
• Asia Pulse, April 11, 2004
• Eli Lilly and Company press release, 2004