Lilly to lay off about 500 in wake of drug fail

Lilly USA has announced it will eliminate about 485 jobs nationwide in the wake of the failure of a drug that aimed to treat Alzheimer's disease.

The company said 75 employees in Indiana will be affected, according to the Indiana Department of Workforce Development.

In a letter to the state and Indianapolis Mayor Joe Hogsett, a Lilly official wrote that all of those affected worked in the unit that had been developing solanezumab, a medication designed to slow the development of Alzheimer's. In December, Lilly announced that trials showed that the drug did not achieve this goal.

Lilly said it was closing its entire Integrated Health Partners/Cardiovascular Account Specialists department, part of its Bio-Medicine Business Unit.

Some of those who worked in that unit have already found jobs elsewhere in Lilly, but approximately 485 have not, wrote Raymond Muller, senior director for human resources. The employees work from their homes in different states.

The layoffs, which the company said were expected to be permanent, will take effect March 31. Those affected can apply for openings within Lilly in the intervening period.

Company officials also said that some employees of Elanco, its animal health division, will be offered a voluntary exit package, based on their years of service. The package comes as a part of a restructuring at Elanco, said Edward Sagebiel, senior director of global corporate communications, reputation and branding for Lilly, in an email.

"These changes will allow us to simplify operations while enhancing our execution and productivity," he wrote.

Call IndyStar reporter Shari Rudavsky at (317) 444-6354. Follow her on Twitter: @srudavsky.

Briggs: Why Eli Lilly's failed Alzheimer's drug could chill research spending

Eli Lilly 'disappointed for millions' of Alzheimer's patients after experimental drug fails trial