“Certain core internal R&D capabilities and expertise remain in-house, but to do everything internally in the current environment simply won’t work,” he adds. “Lilly is openly collaborating with external experts to innovate faster and at less cost than in the past. Essentially, each part of Chorus and its partners does what it does best, and Lilly can run a much larger portfolio with fewer people than if it did all the work internally. Think of Chorus as an example of a ‘force multiplier’—an approach to provide Lilly with more innovative molecules for development faster and at less cost.”  

 

There are certain situations where admittedly the CRO concept can be a little less than perfect, he says.  

 

“Not all molecules in a Big Pharma research and development pipeline are amendable to development in focused proof of concept studies that is at the heart of Chorus,” Armstrong notes. “The molecule and molecular target need to possess a subset of characteristics that provide substantive and actionable data in moderate sized trials.”  

 

To select an outside contractor to run tests on drug candidates, Armstrong notes that Chorus partners with experts in their particular therapeutic area and based on Chorus’ proven experience with the CRO. The effort gives Lilly several areas in with savings can be realized, Armstrong adds.  

 

“Chorus is a virtual development engine that relies on our network of external partners to enable all aspects of the process, from production of the drug candidate through execution and analysis of clinical trials,” he says. “A combination of a lean trial design as well as leveraging the external network is what results in the overall savings.”  

 

So far, five of the 25 molecules studied since Chorus began in 2004 have shown enough promise to merit further study. The first one likely to go to late-stage development: the experimental treatment for rheumatoid arthritis.

 

Some analysts say Chorus won't help Lilly soon enough. Drugs accounting for more than half of Lilly’s current revenue will face generic competition by 2013, as U.S. patents on top-selling treatments expire. The company recently halted work on late-stage compounds for multiple sclerosis and osteoporosis that were developed entirely in-house.  

 

“Neither the cost cuts nor the structural changes help R&D productivity,” Keyur Parekh, a UBS analyst, told the Wall Street Journal recently. He said he thinks Lilly might need to make acquisitions to replenish its pipeline. Lilly bought ImClone Systems for $6.5 billion in 2008, and CEO John Lechleiter has said he’s hunting for more, similarly sized deals.