In France By Thiébaut KELLER, Céline LEBLANC, Antoine LEPRETRE Best in France Case study September...
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Transcript of In France By Thiébaut KELLER, Céline LEBLANC, Antoine LEPRETRE Best in France Case study September...
![Page 1: In France By Thiébaut KELLER, Céline LEBLANC, Antoine LEPRETRE Best in France Case study September 2006 – December 2006.](https://reader038.fdocuments.us/reader038/viewer/2022110205/56649c785503460f9492e086/html5/thumbnails/1.jpg)
In France
By Thiébaut KELLER, Céline LEBLANC, Antoine LEPRETRE
Best in France Case study September 2006 – December
2006
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Outlay
Lilly’s overview
Specific issues of the pharmaceutical sector
Why and when did Lilly come to France
Main constraints in France
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Eli Lilly Co. Overview
Eli Lilly & Co.
Major drugs introduced
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Eli Lilly & Co
• Founded in May 1876 by Colonel Eli Lilly in Indianapolis, USA
• 14.6 billion $ net sales in 2005
• 41 854 employees worldwide (19% in R&D)
• Clinical research in more than 50 countries
• Research and development facilities located in 9 countries
• Manufacturing plants located in 13 countries
• Products marketed in 143 countries : Lilly’s performance influences these economies
Source (11/06 figures) : http://www.lilly.com/about/highlights.html
Source (11/06 figures) : http://www.lilly.com/about/highlights.html
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Major drugs introduced (1/2)
• Prozac®, which revolutionized the treatment of depression
• Zyprexa®, breakthrough product for schizophrenia and acute mania associated with bipolar disorder
• Cialis®, a new treatment for erectile dysfunction
• Gemzar®, for pancreatic and non-small-cell lung cancer, one of the world's best-selling oncology agents
Source : http://www.lilly.com/about/highlights.html
Source : http://www.lilly.com/about/highlights.html
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Major drugs introduced (2/2)
• Humatrope®, therapy for growth hormone deficiency
• Humulin®, human insulin, the first human-health-care product
created by biotechnology
• Ceclor®, which became the world's top-selling oral antibiotic
• Iletin®, the first commercially available insulin product, in 1923
Source : http://www.lilly.com/about/highlights.html
Source : http://www.lilly.com/about/highlights.html
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Lilly France
Overview
Institut Lilly in France
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Overview
• Headquarters in Suresnes (92 Hauts-de-Seine)• Fegersheim’s plant (Alsace) : main production factory of the
group’s subsidiaries, supplier of 126 countries all over the world.
• 2,02 billion € net sales (1,53 billion € from exports)• 2980 employees : 4th most important subsidiary of Eli Lilly • 10th best employer in Europe (Hewitt)• 4th “great place to work” in France in 2005
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“Institut Lilly” in France
• Established in 1990
• 2 goals : – Supporting clinical research
– Delivering educational and training programs to health care professionals and patients
• Has provided grants to 250 researchers
• Has delivered 90 training courses (90,000 professionals)– Specific courses for hospital pharmacists
• Ex: Aims at destigmatizing schizophrenia
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Lilly’s values
3 main values
Lilly’s values in France
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3 main values
• Respect for people :– Employees, customers, shareholders, partners, suppliers
and communities
• Integrity– Highest standards
• Search for excellence– Continuous search for ways to improve the performance
• Global values but adapted to each country to take into account cultural and corporate specificities.
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Lilly’s values in France
How do Lilly’s global values
adapt to France?
• Example: Search for excellence:– Means being #1 in the USA
– In France, it means excellence in methods and work quality. Being #2 doesn’t really conflicting with the search for excellence.
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Specific issues of the pharmaceutical sector
Clinical trials : specific and strict regulation
Research and development
Responsibility
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Clinical trials : specific and strict regulation
• In France : “Autorisation de mise sur le marché”
Discovery/Preclini
cal Testing
Phase 1 Phase 2 Phase 3 FDA Phase 4
Years 6.5 1.5 2 3.5 1.5
Purpose
Assess safety,
biological activity,
and formulati
ons
Success Rate
5,000 compoun
ds evaluate
d
5 enter trials
Evaluate effective
ness, look for
side effects
Monitor adverse
reactions from long-
term use
Additional post-
marketing testing required by FDA
Determine safety and dosage
Send to FDA
Send to FDA
LAUNCH
Review process / approval
: 1 approve
d
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Research and Development
• R&D expenses : – $2.7 billion– R&D development laboratories in 9 countries– Clinical research in 60 countries– 20% of turnover invested in research
• Necessity to discover breakthrough products, thanks to medical expertise, in order to finance research for new drugs.
• Recruit and retain the highest quality employees is critical to success in this sector
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Responsibility
• To act responsibly and consistently :
– Observing and complying with the laws– Set standards in operations– Greater transparency on trials (www.lillytrials.com)– Quality : people’s lives at stake : stakeholders trust
is needed for the business to operate– Work with WHO– High standards in ethical behavior (social
responsibility report)• Health, safety and Environment program (3 points)
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Why and when did Lilly come to France
A strategic location
Quality workforce
A great market
French health care system
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A strategic location
• Plant in Alsace region: close to Germany, the first pharmaceutical market in the world
• At the center of Europe:– Infrastructures– Well served by transportation : roads, airport, train
• Close to European institutions
• Headquarters in Suresnes (92), near Paris: – Close to institutions and agencies (AFSSAPS,
etc.)– Close to La Défense business district
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A quality workforce
• Skilled and well-educated employees– Numerous students in pharmacy– Public research facilities: INSERM
• High productivity– Productivity higher in France than the productivity of other plants of the group
• Low absenteeism in Fegersheim
• France is a net-exporter of high-profile executives within the group
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A great market
• France is a very attractive market :• more than 19 billion € in 2001
• US $2903 per capita vs. US $2307 in the OECD
• 340 doctors per 100 000 inhabitants
• The French spend a lot of money on medicine : they rank second within the OECD.
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French health care
system• Social security / High governmental investments
• 76.3% of health expenses paid by the government
• French doctors and hospitals are early adopters of new drugs
• In 2001, 38% of the turnover made with prescription drugs launched less than 10 years before vs. 26% in Germany
• Prices are not the lowest in Europe (close to the mean)
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Main constraintsin France
Social forces and regulations
Mentalities
The Judiciary
Administrative
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Social forces and
regulations • 35h work week• Everything needs to be negotiated : high
risk of strike.
HOWEVER• Fegersheim’s plant is not syndicated. So far
0 day of strike.
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Mentalities
• New employees are carefully selected to fit the corporate culture
• “Win-win” concept doesn’t always seem to be fully understood by the French
– For example: new drugs will help the social and economic development of France and create value for Lilly
– BUT it is sometimes only seen as a new cost for the Social Security
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Judicial
• The French society has become very risk-adverse (risk of punitive damages) :– “Principe de Précaution” is widely spread. Safety
expectations are very high.
– But in pharmaceuticals risk-zero does not exist• Nevertheless, no class actions in France yet
• Difficulties for foreigners to understand the protection of unionists by Work Law.
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Administrative
• Many governmental agencies with whom Lilly must continuously negotiate: AFSSAPS, etc.
• A lack of freedom to communicate about the products (whereas the lab knows its drugs the best)
• Sudden and unexpected political decisions (new taxes, etc.) in spite of annual contracts with firms.
• Very long approval process for new drugs : • Usually 2 more years to get approval of new drugs (“Autorisation de mise sur le marché”) than in other countries
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Perception of French issues by American
chief executives
• Difficulties understanding both social and political phenomena
• But pragmatic approach : – Relative Autonomy of French staff– Everything is controlled and measured, including
the mood of the workforce– Freedom as long as indicators remain as good as
expected
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Prospects
• Lilly keeps on investing in Fegersheim – Factory improvement and enlargement :
Between 1998 and 2003, number of employees from 900 to 1800 : multiplied by 2.
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• Philippe DEFOSSES, Director of corporate affairs
13, rue Pagès - 92158 Suresnes Cedex
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« Lilly believes that strong economies [NDLR: like France!]with a priority on human health [NDLR: like France!] and educated population [NDLR: like the French!] will yield the ultimate health care solutions »
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