Eli Lilly CEO: Recent Events In China Don't Change Much

The slowing of China's economy and the strength in the dollar are significantly impacting companies with substantial international presence like Eli Lilly and Co (NYSE: LLY). John Lechleiter, chairman, president and CEO of Eli Lilly, was on CNBC last Friday to discuss how the company is dealing with these issues.

Long-Term Chinese Opportunity Hasn't Changed

"Our sales today in China are modest in terms of our global sales," Lechleiter began. "But, as we look at China, we see the world's largest market for healthcare emerging. So, we have a significant investment there. We have R&D there. We have manufacturing. Obviously, we have sales. We do clinical trials in China. So, we are watching this very closely."

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Lechleiter went on, "I think, though, that there's no question that as China moves down the path of economic reform – and I think there is a commitment to that on the part of the government – I expect we are going to see things move at times in fits and starts. And I believe as a business person, we have got to keep our eye on the longer term picture there, the opportunity in China. And the strength of the market long term, I don't think has changed based on these recent events."

Currency Movement And Business Strategies

Lechleiter explained how the company is trying to combat the strength of the dollar apart from hedging, saying, "We tend in these times to obviously control costs, but also to look at the underlying business. Are we growing volume? Are we growing share? Are we positioning ourselves well with our key brands and our key markets? Currency – it's very difficult to change your business strategy based on the way the currency goes."

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