Eli Lilly sells off its chemical company as it steels itself for stiff competition
DRUGMAKER Eli Lilly has agreed to sell one of its manufacturing facilities to German chemical company Evonik Industries, as it gears up for an intense period of competition in the pharmaceutical industry.
The financial details of the transaction were not unveiled.
Lilly said last month it planned to cut 5,500 jobs, or 13.5 per cent of its 40,500-strong workforce by the end of 2011 as it prepares to lose patent protection on its top-selling schizophrenia drug Zyprexa and cancer drug Gemzar.
The company said the facility it had sold would remain in operation and continue to supply Lilly with ingredients for some human and animal health products under a multi-year contract with Evonik.
Lilly has said it expects to record a 2009 profit of $4.20 (£2.83) to $4.30 a share and create a new organisational structure focusing on five business units across the company.