LONDON, Jan 5 (APM) - Eli Lilly's new chief executive on Thursday announced management cuts, just weeks after it suffered the Phase III failure of solanezumab in Alzheimer's disease.

David Ricks said in a statement: "Lilly begins 2017 with a clear view of its opportunities for growth in the years ahead. The adjustments we are announcing today to pharmaceutical therapeutic and geographic business areas are designed to maximise the potential of our late-stage pipeline and newly launched medicines, while improving productivity."

Lilly announced in September that solanezumab did not meet the primary endpoint of its EXPEDITION3 Phase III clinical trial. The drug had not shown significant improvement versus placebo in mid-stage trials, but the company changed the study design to have a single primary endpoint, improvement in cognition. (APMMA 50576)

The results were seen as a major blow to the company. Analysts had forecast future peak sales of $3 billion a year for the drug.

On Thursday, Lilly said Christi Shaw has been hired from Novartis to lead the company's Bio-Medicines business beginning on April 3. Shaw will succeed Ricks as head of Lilly Bio-Medicines. She started her career at Lilly in 1989 and worked there until 2002.

Beginning on February 1, Lilly's Diabetes, Oncology and Bio-Medicines human pharmaceutical therapeutic business areas will assume commercial responsibility for their products in China - in addition to the U.S., Japanese and Canadian markets in which they already operate.

Lilly Diabetes will host the company's human pharmaceutical commercial operations in the U.S., China, Japan and Canada. Enrique Conterno, senior vice president of Lilly and president of Lilly Diabetes, will assume additional responsibilities as head of Lilly U.S.

Lilly's current emerging markets business will combine with Europe to form Lilly International, which will have commercial responsibility for the company's human pharmaceutical products in these markets.

Alfonso (Chito) Zulueta, who has led the emerging markets business for the last three years, will be senior vice president of Lilly and head of Lilly International. Dr Sue Mahony will continue as senior vice president of Lilly and president of Lilly Oncology.

Alex Azar, head of Lilly U.S., is leaving the company after five years with the group.

"These organisational changes are expected to increase productivity and simplify Lilly's global commercial organisation," the company said, adding: "These changes will also result in a reduction in leadership positions. In December, the company announced reductions to its U.S. field force in anticipation of patent expirations for key products later this year and in response to clinical trial results on solanezumab."

Ricks said: "With new medicines recently launched - and potential new medicines in development for cancer, diabetes, autoimmune diseases, neurodegeneration, and pain - Lilly is in the early stages of a new growth period. Now is the time to make sure that our organisation is set up to make the most of these opportunities. With clear priorities and the right structure, achieving growth while improving our productivity will go hand-in-hand."

"I'm confident that these changes will help to increase the flow of innovation from our pipeline and maximise opportunities in priority therapeutic and geographic areas."

Ricks took over from John Lechleiter on January 1.

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