Founded in 1876 and headquartered in the US, Eli Lilly is global manufacturer and distributor of pharmaceutical therapies for cancer, cardiovascular diseases, central nervous system ailments, diabetic and endocrine system disorders, and infectious diseases. Lilly's top selling product is Zyprexa, an antipsychotic for the treatment of schizophrenia, with sales in 2006 of over US$4 billion.

Lilly believes in a strategic focus on innovation. The company has begun to pursue the development of “tailored therapeutics” through the application of pharmacogenomics and biomarkers. A total of 90 per cent of Lilly's clinical candidates have biomarkers associated with them, and the company's ultimate goal is to be able to deliver “the right drug at the right dose at the right time”.

To invest in this transformation, Lilly plans to drastically improve the productivity of its current business model. For example, Lilly has set a goal to cut its investment to bring a medicine to market by one-third by the end of the decade, from about US$1.2 billion per new molecular entity to US$800 million. The use of biomarkers is helping to identify early which molecules have the best chance of success. Lilly is also streamlining and improving the conduct of clinical trials.

In October 2004, Lilly began applying 'Six Sigma', a methodology it believes has delivered sustainable productivity improvements and customer benefits across a wide variety of companies and industries throughout its global operations. Lilly exceeded its goal of US$250 million worth of benefit from Six Sigma in 2006, and is on track to double that in 2007.

Lilly is working to rebuild its reputation in light of public scepticism over its use of pharmaceutical drug data. In June 2005, Lilly was found guilty of malpractice through withholding information regarding some of the side effects resulting from Zyprexa. Later in December 2005, the company was also found guilty of marketing Evista under false pretences for indications it was not yet approved for. Most recently in January 2006, the company faced fresh allegations regarding its marketing practices for Prozac. Lilly has responded by establishing the industry's first online clinical trial registry to provide more transparency for its future drug developments.