Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
Darron Cummings / AP
Pharmaceutical giant Eli Lilly is cutting 3,500 jobs, or more than 8% of its entire workforce, to put more money toward developing new drugs and to "improve its cost structure," the company said Thursday. Most of the job cuts, expected to save $500 million, will come from early retirement buyouts.
- Another major reason for the job cuts: Drugs losing patent protection. Cialis, Lilly's erectile dysfunction drug, which had $2.5 billion in worldwide sales last year, loses its patent in November. Patents on the diabetes drugs Humalog and Humulin have already expired, but they are biologic drugs without generic competitors.
- Yes, but: Lilly had a 17% profit margin in the latest quarter. The company is not hurting for cash.