Lilly Reorganizes Pharma Division

Eli Lilly has reorganized its US pharmaceutical division, forming a disease management unit and decentralizing sales and marketing functions. Integrated Disease Management Inc will offer disease management systems in the area of diabetes, depression, ulcer and respiratory diseases.

The company said that the new unit will focus on providing managed care customers with a set of interventions to manage specific disease states. Robert Luginbill, now Lilly's director of health care system marketing, will serve as general manager of the unit, which will have an initial staff of around 35.

Lilly said the program will include provision for risk sharing, in which drug companies agree to take on some financial risk linked to supply contracts, and cost capitation. From November 1, the US sales and marketing will be divided into eight geographic areas.