Eli Lilly 2013 Annual Report Download - page 18

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Human Pharmaceuticals—United States
In the U.S., we distribute human pharmaceutical products principally through independent wholesale
distributors, with some sales directly to pharmacies. In 2013, 2012, and 2011, three wholesale distributors in
the U.S.—AmerisourceBergen Corporation, McKesson Corporation, and Cardinal Health, Inc.—each
accounted for between 10 percent and 19 percent of our consolidated total revenue. No other distributor
accounted for more than 10 percent of consolidated total revenue in any of those years.
We promote our major human pharmaceutical products in the U.S. through sales representatives who call
upon physicians and other health care professionals. We advertise in medical journals, distribute literature
and samples of certain products to physicians, and exhibit at medical meetings. In addition, we advertise
certain products directly to consumers in the U.S., and we maintain websites with information about our major
products. We supplement our employee sales force with contract sales organizations as appropriate to
leverage our own resources and the strengths of our partners in various markets.
We maintain special business groups to service wholesalers, pharmacy benefit managers, managed-care
organizations (MCOs), government and long-term care institutions, hospitals, and certain retail pharmacies.
We enter into arrangements with these organizations providing for discounts or rebates on Lilly products.
Human Pharmaceuticals—Outside the United States
Outside the U.S, we promote our human pharmaceutical products primarily through sales representatives.
While the products marketed vary from country to country, endocrinology products constitute the largest
single group in total revenue. Distribution patterns vary from country to country. In most countries, we
maintain our own sales organizations, but in some smaller countries we market our products through
independent distributors.
Human Pharmaceutical Marketing Collaborations
Certain of our human pharmaceutical products are marketed in arrangements with other pharmaceutical
companies, including the following:
• We co-market Cymbalta in Japan with Shionogi & Co. Ltd.
• Evista is marketed in major European markets by Daiichi Sankyo Europe GmbH, a subsidiary of
Daiichi Sankyo Co., Ltd. (Daiichi Sankyo).
• Erbitux is marketed in the U.S. and Canada by Bristol-Myers Squibb. We have the option to co-
promote Erbitux in the U.S. and Canada. Outside the U.S. and Canada, Erbitux is commercialized by
Merck KGaA. We receive royalties from Bristol-Myers Squibb and Merck KGaA.
• Effient is co-promoted with us by Daiichi Sankyo or affiliated companies in the U.S., major European
markets, Brazil, Mexico, and certain other countries. We retain sole marketing rights in Canada,
Australia, Russia, and certain other countries. Daiichi Sankyo retains sole marketing rights in Japan
and certain other countries.
• Trajenta and Jentadueto are being jointly developed and commercialized with us by Boehringer
Ingelheim pursuant to a collaboration agreement under which both parties contributed certain
potential diabetes treatments in mid- and late-stage development to be jointly developed and
commercialized by the parties.
Animal Health Products
Our Elanco animal health business unit employs field salespeople throughout the U.S. and has an extensive
sales force outside the U.S. Elanco sells its products primarily to wholesale distributors. Elanco promotes its
products primarily to producers and veterinarians for food animal products and to veterinarians for companion
animal products. Elanco also advertises certain companion animal products directly to pet owners.
Competition
Our human pharmaceutical products compete globally with products of many other companies in highly
competitive markets. Our animal health products compete globally with products of animal health care
companies as well as pharmaceutical, chemical, and other companies that operate animal health businesses.