Lilly Invests $30 Million in Partnership to Address Non-Communicable Diseases

INDIANAPOLIS, Sept. 13, 2011 /PRNewswire/ — Eli Lilly and Company (NYSE: LLY)
announced today a $30 million commitment over five years to fight the rising
burden of non-communicable diseases in developing nations. Lilly is launching
The Lilly NCD Partnership, which combines the company’s unique resources with
the expertise of leading global health organizations, to identify new models of
patient care that increase treatment access and improve outcomes for underserved
people. The partnership will initially focus on diabetes – a core business area
in which Lilly has deep expertise.

Non-communicable diseases (NCDs), known as chronic diseases, include
cardiovascular diseases, diabetes, cancer and chronic respiratory diseases. The
first phase of The Lilly NCD Partnership will focus on improving diabetes care
in targeted communities in Brazil, India, Mexico and South Africa.

“Non-communicable diseases are afflicting nations, communities and families
around the world, with the most vulnerable bearing most of the burden,” said
John C. Lechleiter, Ph.D., Lilly chairman, president, and chief executive
officer. “We believe we have a responsibility – and are uniquely positioned – to
assist in the global fight against these diseases. In partnership with leading
health organizations, Lilly will contribute its deep expertise and the company’s
broad research capabilities to help find solutions for these pressing societal
needs.”

Lilly and its partners continue to develop country-specific programs that will
launch in early 2012. Lilly and its partners will develop country-specific
milestones that, if achieved, will trigger future investments. Partners include:

— Brazil: Hospital Israelita Albert Einstein – Diagnostic & Preventive
Medicine and Research Institute
— India: The Public Health Foundation of India, Project HOPE, Population
Services International
— Mexico: The Carlos Slim Health Institute – Casalud
— South Africa: The Donald Woods Foundation, Project HOPE

The Lilly NCD Partnership Approach

The new program, based on the concept of “shared value,” is designed to identify
comprehensive, sustainable approaches to patient care, which, depending on local
needs, may include everything from patient education and provider training to
increased access to treatment. The concept of “shared value,” developed by
Michael Porter and Mark Kramer, and originally published in the Harvard Business
Review, occurs when a business identifies a select societal need and applies its
business model in collaboration with others to find new solutions.

Leveraging the company’s business model, the Lilly NCD Partnership will use the
following methodology:

— Research: Pilot models of healthcare for diabetes based on sophisticated
research and detailed data collection.
— Report: Work with well-respected partners to share data and key
learnings.
— Advocate: Inform key stakeholders about program findings and encourage
adoption of proven, cost-effective solutions.

“The business community can – and must – play a vital role in addressing complex
societal problems. And it’s clear that writing a check or donating product alone
doesn’t have a lasting impact,” said Lechleiter. “A growing body of evidence
demonstrates that when a company engages with partners in an area in which it
has deep expertise and a vested interest, society benefits and the company
enhances its own performance.”

The NCD Challenge

Chronic diseases disproportionately affect the economically disadvantaged, with
80 percent of all NCD deaths occurring in low- and middle-income countries. NCDs
claimed the lives of 36 million people in 2008, according to World Health
Organization, representing 63 percent of all global deaths. NCDs are a major
contributor to poverty and a barrier to social and economic development.

“While prevention of NCDs is a public health priority, early detection and
effective treatment is also needed to avoid premature deaths and reduce disease
related disability,” said K Srinath Reddy, M.D., president of the Public Health
Foundation of India. “It is important that health systems in developing
countries are strengthened, so that they can effectively respond to this
challenge.”

Jacques Tapiero, president of Lilly’s emerging market business group, noted,
“NCDs in developing countries haven’t garnered the same attention that TB,
HIV/AIDS and malaria have. There are few successful models of treatment for NCDs
and limited international funding. Meanwhile, governments in developing
countries are recognizing the need to focus resources on NCD treatment and
prevention. The Lilly NCD Partnership will work closely with governments to
identify, evaluate and prioritize healthcare solutions that meaningfully reduce
the burden of chronic diseases in cost effective ways.”

“Advancing the Conversation” around NCDs

Lilly supports the upcoming United Nations High Level Meeting in New York,
September 19-20, which will provide much-needed momentum toward uniting global
efforts in addressing the complex barriers to effective diagnosis and treatment
of people with or at risk for NCDs. Consistent with U.N. recommendations for
progress against NCDs, Lilly supports active, open collaboration among
government, the private sector, civil society and local communities.

To help further awareness of the need for better care for NCDs, Lilly CEO
Lechleiter will participate in a September 14 conference hosted by Washington
Post Live – “Sharing the Responsibility: Non-Communicable Diseases.” Sponsored
by Lilly, the conference will feature global thought leaders discussing the NCD
challenge and potential solutions, including the role of public-private
partnerships. In addition, Lechleiter will speak and participate in a panel
discussion on NCDs at the Asia-Pacific Economic Cooperation – Senior Leaders
Meeting, on September 16. APEC attendees will include ministers of health from
APEC countries.

“We will use our expertise and resources to collaborate on comprehensive
solutions that go beyond medicines alone, especially in countries with less
developed healthcare systems,” Lechleiter said. “This partnership is a natural
extension of Lilly’s vision to improve global health in the 21st century.”

Lilly Corporate Responsibility

The Lilly NCD Partnership will complement The Lilly MDR-TB Partnership, a highly
successful program the company launched in 2003 to help address multi-drug
resistant tuberculosis, which afflicts some of the poorest people in the world.
These programs underscore Lilly’s primary corporate responsibility focus on
improving health for people in need, especially in developing countries.

Lilly’s corporate responsibility efforts also include improving K-12 education
in the company’s home state of Indiana, strengthening communities that are home
to Lilly’s major operations and fostering a healthier environment.

About Eli Lilly and Company

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. CR-LLY

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SOURCE Eli Lilly and Company