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A $400 million Investment and a New Service Concept Help Eli Lilly Launch a Major New Product
Situation
The expiration of its Prozac® patent, combined with multiple product launches, created pressures on earnings, budgets and internal resources for Eli Lilly just as it was planning a major launch for Cymbalta®, a new antidepressant and pain reliever.
Solution
NovaQuest's predecessor, PharmaBio Development, committed more than $400 million in milestone payments and sales force services to fund the launch of Cymbalta and support commercialization efforts for five years. A dedicated service company created by PharmaBio Development is providing more than 500 Innovex sales representatives to supplement the extensive Lilly primary care and specialty sales forces. Quintiles is also providing data management services, Quintiles Strategic Research Services, board certified CNS medical advisors, outstanding medical regulatory and due diligence specialists and biostatisticians. In return for its investment, NovaQuest is receiving a royalty on Cymbalta net sales for eight years.
Value Added
Eli Lilly maximizes its sales force effectiveness and leverages Quintiles' strong in-house CNS expertise. The transaction distributes commercialization risks, matches Lilly's expenses with returns generated by Cymbalta, and allows Lilly to remain in full control of its commercial program while benefiting from the operational and technical expertise of Quintiles.
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