Lilly to Streamline Indianapolis Manufacturing and Engineering ...( Company taking steps to transform its...),Health

Company taking steps to transform its business; employment to be reduced by

up to 500

INDIANAPOLIS, April 16 /PRNewswire-FirstCall/ -- Eli Lilly and Company (NYSE: LLY) today announced a streamlining of a portion of its manufacturing operations in Indianapolis. These actions, which affect sites that manufacture active pharmaceutical ingredients for the insulin products Humalog(R) and Humulin(R) as well as for the osteoporosis medicine Forteo(R), will align manufacturing capacity and engineering support services with the needs of the business.

Lilly is offering a voluntary exit program to employees in selected areas, with enhanced financial incentives for those who leave the company. In total, the voluntary program is expected to reduce Lilly's Indianapolis employment by up to 500 people, predominantly in manufacturing but with a small portion in selected areas of research and development.

"For several years we have focused on strategic efforts to lower costs, increase flexibility, and improve productivity across the business," said John C. Lechleiter, Ph.D., Lilly president and chief executive officer. "This strategy calls for reducing investments in some areas while increasing investments in others, and the streamlining decisions announced today are an example of this."

Added Lechleiter, "We are constantly assessing our manufacturing capacity and taking the necessary steps to align it with the demands of the business. In particular, we must align our production capacity with anticipated customer demands over a time period in which some products will lose patent protection while other new products are launched."

"While these are necessary decisions, they are difficult becaus
'/>"/>