Navigation Links
Lilly Chairman & CEO Lechleiter Says Innovation Is Vital-But-Missing Plank in Health Reform Debate
Date:5/14/2009

Chamber of Commerce Speech Tackles Policy Issues, from Personalized Medicine to Biosimilars

WASHINGTON, May 14 /PRNewswire-FirstCall/ -- In remarks before the U.S. Chamber of Commerce today, John C. Lechleiter, Ph.D., chairman and CEO of Eli Lilly and Company (NYSE: LLY) said that federal policymakers' attention to access, quality and costs in health reform should also include a focus on innovation - or the results could include "unintended side-effects." Innovation, he said, helped boost the average American's life expectancy from 47 to 78 years, a rise of 66 percent over the past century and "unprecedented in human history." In his keynote speech before a group of business, government and health care representatives, Lechleiter identified specific policy proposals and their implications for patients and for developing breakthrough treatments and cures.

"Encouraging innovation needs to be the purpose of U.S. health care reform, not its victim," Lechleiter said. "It's innovation that explains why we are the healthiest, longest-lived and wealthiest human beings ever to occupy the planet."

But, he asserted, if heath care reform does not encourage innovation, "then the important goals of expanding access, improving quality and controlling costs will prove illusory."

He cited a Columbia University study that analyzed data from 52 countries and showed that, controlling for other factors, the availability of new medicines alone accounted for 40 percent of the increase in life expectancy during the 1980s and 1990s. He said the medical advances of the past century that made life-expectancy and quality-of-life gains possible included the invention of:

  • Antibiotics to cure infections
  • Vaccines that have nearly eradicated several conditions, such as polio
  • Effective treatments for a growing number of cancers, and
  • Medications that have lessened the toll of a number of dreaded diseases, such that they are now considered chronic, manageable conditions.

He then observed, "The economic payback from these gains is difficult to overstate. The payback is years of productive work, economic value added, consumer spending and tax dollars paid - which together outweighs the costs of treatment overwhelmingly - even if you resist the idea of putting a number on the intrinsic value of being alive."

Lechleiter expressed hope for similar future gains, but he pointed to major bellwethers warning that innovation is at risk:

  • The pharmaceutical industry, he said, is "in the midst of a wave of defensive consolidations that will leave the world with even fewer entities capable of taking an idea -- a discovery -- and turning it into a medicine approved for patients."
  • "Half of the smaller biotech firms in the U.S. have less than a year of [operating] cash remaining, and a third are down to their last six months"; and
  • Recent FDA new drug approvals have dropped sharply relative to the past 30 years.

Lechleiter rounded out his speech with a closer look at several areas of public policy under which, depending on the path taken in health reform, innovation will be enhanced or curbed.

Prefacing his policy prescriptions, he said: "When it comes to sustaining innovation, the burden remains on us -- as it should. We're not asking for a handout or a bailout. Instead, businesses that live or die by health care innovation in the U.S. ask only that we be allowed to continue doing just that: proving the value of what we've developed or failing in the marketplace."

He urged all stakeholders engaged in health reform to ensure that:

  • The value of medicines is evaluated by doctors and patients, who, when properly informed, can choose from the available alternatives a drug that's medically appropriate and best for the individual patient;
  • Innovators get a return on investment that accurately reflects the value of the innovations delivered, thus encouraging investment in new treatments and cures for patients; and
  • Innovators retain ownership, for a reasonable period of time, of their intellectual property, to provide the necessary incentives for risk-taking that leads to innovation.

Such an approach to public policy, he contended, would usher in:

  • An era of "personalized medicine," which would tap the insights of the Human Genome Project and replace the usual one-size-fits-all approach;
  • Market-based health reforms, including access to insurance for all Americans, supported by public subsidies and tax credits rather than a government-run option;
  • Solid comparative effectiveness research that informs on the benefits, risks and costs of various treatment options but that does not trump physician judgment, deny patients access to needed treatments or mandate prices;
  • A 14-year data protection period for biologic drugs, which balances the prospect of a return on investment with a clear path to lower-cost copies. The bipartisan "Pathways for Biosimilars Act" in Congress takes this approach.

Lechleiter spoke as part of the Chamber of Commerce's National Chamber Foundation CEO Leadership Series.

About Lilly

Lilly, a leading innovation-driven corporation, is developing a growing portfolio of first-in-class and best-in-class pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers - through medicines and information - for some of the world's most urgent medical needs. Additional information about Lilly is available at www.lilly.com.

(Logo: http://www.newscom.com/cgi-bin/prnh/20031219/LLYLOGO )

C-LLY


'/>"/>
SOURCE Eli Lilly and Company
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Lilly USA, LLC and Vision Racing Encourage Fans to get on Track With Their Health
2. WuXi AppTec Receives 2009 Lilly Global Supplier Award
3. Lilly Granted Preliminary Injunction to Prevent Launch of Generic Raloxifene
4. Lilly Declares Second-Quarter Dividend
5. Lilly Reports Strong First-Quarter 2009 Results
6. Lilly Names Susan Mahony Senior Vice President of Human Resources
7. Lilly Pulitzer(R) Launches A Colorful Cause Celebrity Designed Collection for EBMRF
8. Former Head of Office of Lilly CME, Steve Davidson, RPh, Named Medical Education Specialist at CME Enterprise
9. J. Michael Cook to Retire from Lilly Board of Directors
10. Lilly Sets Date and Conference Call for First-Quarter 2009 Financial Results Announcement
11. Anthem Blue Cross and Blue Shield, Eli Lilly and Company Establish Coalition to Help Improve the Health of Indiana Residents with Diabetes
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:8/22/2017)... ... 2017 , ... The Women’s Choice Award, a growing platform that gives a ... Women’s Choice Award. The identification by women of an effective new migraine relief ... are women. In a survey taken by the Women’s Choice Award organization, nine out ...
(Date:8/22/2017)... ... August 22, 2017 , ... GeBBS ... recently the availability of a new professional fee E/M leveling calculator tool. The ... to the healthcare industry. E/M coding is complex which supports the need for ...
(Date:8/22/2017)... ... August 22, 2017 , ... ... of child abuse and neglect, and the struggles faced while hoping for a ... creation of published author, Judy Von Bernewitz, who spent 13 years working with ...
(Date:8/22/2017)... ... ... “Call Of Spiritual Duty”: a revelation in an era defined by intentional confusion. ... up on the streets of North Visalia, California, Carlos Lizarde quickly became familiar with ... to his life, he noticed immediately that opportunities and blessings began to shift in ...
(Date:8/21/2017)... , ... August 21, 2017 , ... ... addition of two plastic surgery fellows for academic year 2017-2018, Christina M. Busuito, ... who have successfully completed residency in Plastic and Reconstructive Surgery. The candidate ...
Breaking Medicine News(10 mins):
(Date:8/2/2017)... 2017  Life Flight Network and PeaceHealth Oregon Network announced ... care and operational efficiency for patients at hospitals in ... Cottage Grove , and Florence, Oregon ... Life Flight Network work collaboratively to move patients who require ... a time sensitive emergency exists. ...
(Date:7/31/2017)... Tru-D SmartUVC robots have arrived at Brian Allgood Army Community ... for "Total Room Ultraviolet Disinfection," is a 5-foot-5 germ-killing robot that is ... cleans the area with traditional cleaning protocols. ... Tru-D fights germs at Army hospitals ... "Although the BAACH has a very low infection rate, below national ...
(Date:7/27/2017)... 2017  Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) ... 30, 2017.  The Company reported second quarter net sales ... prior year period, and an increase of 2.1% on ... of contribution from the LDR Holding Corporation acquisition, second ... of 2016, or 0.3% on a constant currency basis. ...
Breaking Medicine Technology: