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Expert: New Eli Lilly CEO Takes The Reins At A Good Time

By Lindsey Wright

Posted August 2, 2016

Eli Lilly's retiring chief led the company to new prosperity during his eight-year tenure, and experts say his replacement will have the challenge of keeping that going.

David Ricks will replace outgoing CEO John Lechleiter at the start of the new year.

Ricks has a long history in Indiana and with Lilly, says Indiana University corporate strategy professor Todd Saxton. He says Ricks takes the reins at a good moment. The company is doing well financially, with promising new drugs in the regulatory pipeline.

Since those approvals can take years, though, Saxton says Ricks can't let the company stagnate. It will need to create and acquire new innovations to stay competitive.

"But it's a constant challenge, and it's a challenge to balance that internal development with external partnering to show sources of future growth, and I think that's something that Dave will be very well suited to continue," Saxton says.

Ricks currently leads Lilly's biomedicine division, and has experience with the company's operations in China and Canada. Saxton says he'll need it, as Lilly faces increasing competition and demand for generics and other forms of medicine abroad.

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