Balancing R&D Investment and Supply Chain Expansion for Long-Term Innovation

28 days ago

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"We spend 25% of sales on R&D. This year that'll be $14.2 billion. And with our commitment to building out the supply chain, constructing six plants with plans for four more, we're betting on both organic growth and external innovation to fuel the next generation of drugs. We have to balance lowering prices for accessibility with preserving incentives for future innovation."

The CEO outlines Eli Lilly's strategy of reinvesting heavily in R&D (25% of sales, amounting to $14.2 billion this year) and expanding its supply chain through new plant construction. This approach aims to maintain a competitive edge in innovation while carefully managing drug pricing to sustain future product development. The discussion provides investors with an overview of both growth catalysts and inherent risks in the pricing-innovation trade-off.

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