As reported in Fierce Biotech this morning, Lilly is making the strategic move to fund about 20% of 3 new biotech venture funds - to tune of about $150 M - in order to shore up its flagging pipeline. This move may be even more critical than previously perceived due to patent cliff issues, given that Lilly has been hit by anothr wave of late stage pipeline failures in the past several weeks.
Some analysts are giving credit to Lilly management for being more aggressive and trying new models to help fill the pipeline. Lilly's stated plan is to back about 60 new molecules through these venture groups - with the expectation that 15 to 20 will make it past proof of concept stage. Lilly would secure first right of refusal at fair market rates. It's a start.
Posted by Bruce Lehr September 9th 2010.