Eli Lilly and Company to Open a Diabetes-Focused Research Center in China

INDIANAPOLIS, Nov. 2, 2010 /PRNewswire-FirstCall/ — Eli Lilly and Company
(NYSE: LLY) announced today plans to open a research center focused on diabetes
in China, where the incidence of the disease has reached epidemic proportions.

The center, to open in Shanghai in the second half of 2011, will focus on
discovering new medicines to treat diabetes, and reflects both Lilly’s
longstanding leadership in this disease area and the priority Lilly places on
improving the health of the Chinese people.

“We are establishing this research center, first and foremost, to meet the
growing unmet medical needs of those living in China with diabetes,” said Jan
Lundberg, Ph.D., executive vice president, science and technology, and
president, Lilly Research Laboratories. “This center will complement our
existing network of collaborations in China and also will enable us to further
gain the insights of China’s talented scientists inside and outside of Lilly as
we further explore a disease state in need of new and innovative therapies.”

According to a recent article in The New England Journal of Medicine, an
estimated 92 million people in China – almost 10 percent of the adult population
- have diabetes(1), a number that is expected to increase in the coming decade
due in large part to longer life expectancy, dietary changes and lack of
exercise. Left untreated or undertreated, diabetes can lead to debilitating or
potentially fatal complications, including heart disease, stroke, nerve damage,
lower limb amputation, vision loss and kidney disease.

“Our strategy in China, and throughout the world, is to bring innovation to
patients,” said Jacques Tapiero, senior vice president and president of Lilly’s
emerging markets business area. “By establishing a diabetes research center in
China, Lilly will be better able to discover medicines that are well suited to
the particular needs of patients with diabetes in China.”

In another timely example of Lilly’s commitment to diabetes research, the
company said today that it is working with the China Diabetes Society (CDS) and
the European Foundation for the Study of Diabetes (EFSD) to support
collaborative diabetes programs between Chinese and European academic centers.
Lilly has committed a total of 1.8 million Euros over three years (approximately
$2.5 million or $16.6 million renminbi) to this effort.

More on the Diabetes Research Center in China
— Heading up the center will be Bei Betty Zhang, Ph.D., a native of
Shanghai and an internationally-recognized diabetes expert who also
serves as vice president of research for Lilly Research Laboratories in
China. Zhang is a graduate of Fudan University in Shanghai and completed
her doctorate at the Indiana University School of Medicine and
postdoctoral fellowship at Stanford University School of Medicine, USA.
— The center will initially employ approximately 100 scientists and
support staff, the majority of whom will be hired from within China.
— The center will focus on seeking to discover compounds with novel
mechanisms of action leading to breakthrough therapies for diabetes. Its
work will be complementary to Lilly’s global diabetes R&D efforts.
— Scientists at the research center hope to discover medicines that better
control blood glucose levels without hypoglycemia (low blood sugar),
along with diabetes therapies that address co-morbid conditions such as
cardiovascular disease and obesity.

“What we are saying in announcing the establishment of this center is that we
are committed to innovation, we are committed to diabetes, and we are committed
to improving outcomes for individual patients with diabetes,” said David Moller,
M.D., vice president of endocrine and cardiovascular research and clinical
investigation at Lilly. “Given key differences in the molecular basis of
diabetes in Chinese and other Asian populations, a major focus at this center
will be on discovering therapies that target critical aspects of the disease.”

Deepening Lilly’s Presence in China

Lilly has been consistently building its organization in China since the early
1990s. Lilly’s China operations and R&D efforts are based in Shanghai, and the
company also has manufacturing facilities in Suzhou in addition to more than 30
offices throughout the country.

“Lilly’s presence in China spans every aspect of our business, from R&D to
manufacturing to sales and marketing, and Lilly China is one of the leading and
the fastest growing multinational biopharmaceutical companies in China,” said
Eric Baclet, president of Lilly China. “Our new research facility is another
dimension of our long term and multi-faceted approach in China.”

— Since the late 1990s, Lilly has invested more than 2 billion renminbi
(nearly $300 million) across its value chain in China.

— Lilly is the first and, to date, the only global pharmaceutical company
to create a venture capital fund focused on the biopharmaceutical
industry in China. This fund, known as Lilly Asian Ventures, has made
six investments and deployed more than 250 million renminbi ($40
million) since being established in 2007.

— Lilly has a history of strategic collaborations with companies and
academic institutions in China, including Shanghai ChemExplorer Company
Ltd., which is a contract research organization providing exclusive
chemistry services to Lilly. “Lilly’s diabetes-focused research center
will further enhance our presence in China, a key component of which is
integrating Chinese companies and talent into our efforts to make a
difference for patients,” said Tony Zhang, Ph.D., Lilly’s vice president
of global external research and development-Asia.

About Lilly

Lilly, a leading innovation-driven corporation is developing a growing portfolio
of pharmaceutical products by applying the latest research from its own
worldwide laboratories and from collaborations with eminent scientific
organizations. Headquartered in Indianapolis, Ind., Lilly provides answers -
through medicines and information – for some of the world’s most urgent medical
needs. Additional information about Lilly is available at www.lilly.com.

This press release contains forward-looking statements about Lilly’s new
research center to be established in China and reflects Lilly’s current beliefs.
As with any pharmaceutical research, there are substantial risks and
uncertainties in the process of development and commercialization. There is no
guarantee that this research facility will produce any potential medicines, or
that any such compounds will be proven safe and effective for the treatment of
diabetes or any other indication. There is also no guarantee that any such
compound will be approved for marketing in China or any other country or achieve
commercial success. For further discussion of these and other risks and
uncertainties, see Lilly’s filings with the United States Securities and
Exchange Commission. Lilly undertakes no duty to update forward-looking
statements.

P-LLY

(1) Prevalence of Diabetes among Men and Women in China. The New England Journal
of Medicine. Volume 362, 1090-1101; March 25, 2010

SOURCE Eli Lilly and Company