WRAL Tech Wire

Shutdown: Eli Lilly Says It Will Close Laboratory in RTP, Relocate Operations

Eli Lilly is shutting down its laboratory and wet space facilities in RTP, affecting some 150 jobs.

Lilly, which is based in Indianapolis IN, made the announcement today as part of its quarterly earnings report.

"This site has historically been the company's center of excellence for high-throughput screening and combinational chemistry," the company said in a statement, "but much of that technology has evolved such that these operations can be more effectively performed in existing facilities in Indianapolis."

RTPTV first reported the possible closure and the number of jobs affected.

In all, Lilly said it was cutting some 1,000 jobs, more than half of which are in sales and marketing.

The company said employees involved in the cutbacks "will be given the opportunity to fill other open positions" or accept "voluntary severance" packages.

Lilly's CEO, Sidney Taurel, pointed to sales of the drug Zyprexa and price pressure on pharmaceuticals as reasons for the cutbacks.

"Specifically, we are now in an environment in which the increasing dissatisfaction with pharmaceutical prices compels us to relentlessly identify and eliminate any inefficiency in our business," Taurel said.