On the Call: Eli Lilly CFO Rice on restructuring

[Anonymous]

http://www.businessweek.com/ap/financialnews/D9MM8ALG1.htm

 

[Anonymous]

Let's just shut down the whole f***ing U.S. organization and offshore everything to China, India and Vietnam! (I expect nothing less from someone named Rice).

Let's "exceed" the targeted headcount reductions!

 

[Anonymous]

"we're about 75 percent of our way to that goal"

that some funny math. I get only 40% of goal not 75%

 

[Anonymous]

"we're about 75 percent of our way to that goal"

that some funny math. I get only 40% of goal not 75%

As always, what shareholders are told, and what employees are told, are two different animals

 

[Anonymous]

"we're about 75 percent of our way to that goal"

that some funny math. I get only 40% of goal not 75%

He meant to say 75% of this month, not for the year or the target. That would be *astronomical* imrpovement in productivity.

If Lilly is adding 3 employees overseas (China), then reducing ~5500 to save 1billion dollars anally, US job loss could be over 9000 to maintan the steady state kinetics of 38,773 employees sans contractors. In that sense, a monthly lay of of ~700 from US facilities mean adding 2100 overseas. Of course, increase FTE in China will bring good news in about 5 years for the company, if serious business conflikt does not arise with China.

 

[Anonymous]

He meant to say 75% of this month, not for the year or the target. That would be *astronomical* imrpovement in productivity.

If Lilly is adding 3 employees overseas (China), then reducing ~5500 to save 1billion dollars anally, US job loss could be over 9000 to maintan the steady state kinetics of 38,773 employees sans contractors. In that sense, a monthly lay of of ~700 from US facilities mean adding 2100 overseas. Of course, increase FTE in China will bring good news in about 5 years for the company, if serious business conflikt does not arise with China.

One serious math issue here: Chinese scientists are already at 80% of the salary level of their American counterparts. It's a classic bait-and-switch game.

Except in this game, all of the shiny new facilities are located somewhere else.

 

[Anonymous]

One serious math issue here: Chinese scientists are already at 80% of the salary level of their American counterparts. It's a classic bait-and-switch game.

Except in this game, all of the shiny new facilities are located somewhere else.

And lets not forget that Lilly doesn't pay taxes until the bring the money back. Store it overseas and wait for a tax holiday that will no doubt be pushed in the name of "stimulus."

 

[Anonymous]

This is really a "Chinese Fire Drill". Move most of the operations to an emerging market, pay fewer taxes, lower your payroll & you don't have to deal with the FDA regulatory issues and oversight.

Looks like the Chinese may soon have their markets flooded with "tainted" goods i.e. Zyprexa et al. Similar to the lead based paint found in toys and jewelry imported from China or the toxic drywall utilized in the repair and rebuilding of thousands of hurricane damaged homes in the USA. Yep, what goes around comes around thanks to Lilly!

Off-label marketing is resurrected, black box warnings no longer exist, recalled Lilly drugs are now renamed and relaunched.

A stroke of genius by JL!

I hear JL is sending Lilly gift boxes to the survivors in Fukishima to help them cope. How do you say "5 mg at 5 pm" in Japanese? The ultimate Pearl Harbor payback!

Sayonara!!!

 

[Anonymous]

This is really a "Chinese Fire Drill". Move most of the operations to an emerging market, pay fewer taxes, lower your payroll & you don't have to deal with the FDA regulatory issues and oversight.

Looks like the Chinese may soon have their markets flooded with "tainted" goods i.e. Zyprexa et al. Similar to the lead based paint found in toys and jewelry imported from China or the toxic drywall utilized in the repair and rebuilding of thousands of hurricane damaged homes in the USA. Yep, what goes around comes around thanks to Lilly!

Off-label marketing is resurrected, black box warnings no longer exist, recalled Lilly drugs are now renamed and relaunched.

A stroke of genius by JL!

I hear JL is sending Lilly gift boxes to the survivors in Fukishima to help them cope. How do you say "5 mg at 5 pm" in Japanese? The ultimate Pearl Harbor payback!

Sayonara!!!

Well it's also true that there are no EPA air toxics regulations to comply with in China.

 

[Anonymous]

Don't we have an "Environmental Justice" officer?

Surely somewhere in the Global management someone handles that.

 

[Anonymous]

Don't we have an "Environmental Justice" officer?

Surely somewhere in the Global management someone handles that.

I heard it's on Bart's position listing.