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These excerpts taken from the LLY 10-K filed Feb 27, 2009. Pharmaceuticals −
United States
In the United States, we distribute pharmaceutical products
principally through independent wholesale distributors, with
some sales directly to pharmacies. Our marketing policy is
designed to assure that products and relevant medical
information are immediately available to physicians, pharmacies,
hospitals, public and private payers, and appropriate health
care professionals throughout the country. Three wholesale
distributors in the United States − AmerisourceBergen
Corporation, Cardinal Health, Inc., and McKesson Corporation
− each accounted for between 12 and 16 percent
of our worldwide consolidated net sales in 2008. No other
distributor accounted for more than 10 percent of
consolidated net sales. We also sell pharmaceutical products
directly to the United States government and other
manufacturers, but those sales are not material.
We promote our major pharmaceutical products in the United
States through sales representatives who call upon physicians
and other health care professionals. We advertise in medical and
drug journals, distribute literature and samples of certain
products to physicians, and exhibit at medical meetings. In
addition, we advertise certain products directly to consumers in
the United States and we maintain web sites with information
about all our major products. Divisions of our sales force are
assigned to therapeutic areas, such as neuroscience, diabetes,
osteoporosis, and oncology. We supplement our employee sales
force with contract sales organizations as appropriate to
leverage our own resources and the strengths of our partners in
various markets.
Large purchasers of pharmaceuticals, such as managed-care
groups, government agencies, and long-term care institutions,
account for a significant portion of total pharmaceutical
purchases in the United States. We maintain special business
groups to service wholesalers, managed-care organizations,
government and long-term care institutions, hospitals, and
certain retail pharmacies. In response to competitive pressures,
we have entered into arrangements with a number of these
organizations providing for discounts or rebates on one or more
Lilly products.
Pharmaceuticals − United States In the United States, we distribute pharmaceutical products principally through independent wholesale distributors, with some sales directly to pharmacies. Our marketing policy is designed to assure that products and relevant medical information are immediately available to physicians, pharmacies, hospitals, public and private payers, and appropriate health care professionals throughout the country. Three wholesale distributors in the United States − AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation − each accounted for between 12 and 16 percent of our worldwide consolidated net sales in 2008. No other distributor accounted for more than 10 percent of consolidated net sales. We also sell pharmaceutical products directly to the United States government and other manufacturers, but those sales are not material. We promote our major pharmaceutical products in the United States through sales representatives who call upon physicians and other health care professionals. We advertise in medical and drug journals, distribute literature and samples of certain products to physicians, and exhibit at medical meetings. In addition, we advertise certain products directly to consumers in the United States and we maintain web sites with information about all our major products. Divisions of our sales force are assigned to therapeutic areas, such as neuroscience, diabetes, osteoporosis, and oncology. We supplement our employee sales force with contract sales organizations as appropriate to leverage our own resources and the strengths of our partners in various markets. Large purchasers of pharmaceuticals, such as managed-care groups, government agencies, and long-term care institutions, account for a significant portion of total pharmaceutical purchases in the United States. We maintain special business groups to service wholesalers, managed-care organizations, government and long-term care institutions, hospitals, and certain retail pharmacies. In response to competitive pressures, we have entered into arrangements with a number of these organizations providing for discounts or rebates on one or more Lilly products. | EXCERPTS ON THIS PAGE:
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