With Patents Expiring, Eli Lilly Looking for Deals

As the pharmaceutical industry is preparing for the expiration of several key patents, Eli Lilly & Co. is apparently ready to try and diversify their portfolio.  According to Forbes.com, Lilly’s Chief Executive has stated that they will pursue deals that cost between $5 billion and $15 billion, while staying away from any bigger acquisitions.  Lilly will also reportedly stick to acquiring drugs, rather than branching out in the medical device or diagnostic fields. 

This news may not come as a surprise, as the company will lose patent protection for Zyprexa, their best selling drug, in 2011.  Lilly will also lose patent coverage for Cymbalta, Humalog, and Gemzar in 2013.

Any of Lilly’s potential deals will follow what has already been a slew of deals in the pharmaceutical industry.  In January, Pfizer agreed to buy Wyeth for $68 billion.  Meanwhile, Merck & Co. will buy Schering-Plough Corp for $41.1 billion.  Lastly, Roche has paid $46.8 billion in cash to buy the 44% of Genentech that it didn’t already own.