Eli Lilly and Company CEO Says Cost Cutting Won't Solve Drug Sales Loss, Advancing Pipeline Will

Eli Lilly & Co. (LLY), facing generic competition to two of its top drugs, needs to rely on new medicines rather than cost-cutting to overcome the revenue loss, Chief Executive Officer John Lechleiter said. Pfizer Inc. (PFE), the world’s largest drugmaker wrestling with sales losses after its cholesterol pill Lipitor began facing generic versions, has pledged to trim $1 billion from operations in 2012. A similar focus on costs won’t be enough for Lilly, Lechleiter said. Medicines accounting for about half the Indianapolis-based drugmaker’s 2011 revenue will face copycats by June 2013.