Lilly Sets up Systems Biology R&D Center in Singapore.

Business Editors, Health/Medical Writers

INDIANAPOLIS--(BW HealthWire)--June 26, 2001

Eli Lilly and Company (NYSE:LLY) and the Singapore Economic Development Board (EDB) announced today that they have entered into an agreement for Lilly to establish a groundbreaking R&D center in Singapore focused on systems biology.

Systems biology is a creative approach to studying whole biological systems utilizing contemporary biotechnology strategies, including bioinformatics, in parallel with conventional biomedical research. Unlike traditional approaches, systems biology looks at all levels of biological information from genes to mRNAs to proteins in terms of the biological pathways or systems involved in physiology and disease. The promise of this type of integrated research is the ability to accelerate the rate of drug discovery and enhance the quality of information gathered about the drug during the process.

"This center will provide a vital link for our organization," said Thomas Bumol, Ph.D., vice president of research technologies and proteins. "Medical research is now conducted in an information rich environment in the post-human genome sequence world which requires a new paradigm to study biological systems. A systems biology approach will integrate and analyze biological information across the drug discovery disciplines of molecular biology, chemistry, pharmacology, toxicology and clinical development, which will be essential for innovation in drug development."

Lilly's state-of-the-art research and development center, the Lilly Centre for Systems Biology (CSB), will employ approximately 50 scientists and information technology professionals, adding to the company's presence in the region and enhancing global research efforts. The CSB will begin operations by 2002 and is expected to spend $140 million on research over a five-year period.

Lilly's CSB has a strong fit with EDB's strategy to develop the biomedical sciences industry in Singapore across the entire value chain ranging from research and development, product and process development and full-scale manufacturing to regional headquarter services and healthcare delivery. It will be the first biomedical sciences R&D center to receive support from EDB's $600 million R&D Fund, which was set up in June 2000 to promote private R&D activities during the next five years. This Fund will enable Singapore to attract world-class biomedical sciences companies to carry out their research activities.

"We are excited by the opportunity in Singapore and look forward to accessing top scientific talent in the region," said August Watanabe, M.D., executive vice president science and technology for Lilly. "During this extraordinary time in science, advanced bioinformatic approaches, such as the ones to be used at the CSB, will be the key to accelerating drug discovery and development. These techniques will increase the probabilities of technical success, provide a deeper understanding of biological systems and help us deliver better drugs for some of the most urgent, unmet medical needs."

"The Singapore Government places strong emphasis on developing both public and private sector R&D activities. This effort will strengthen the nexus between private and public sector R&D activities by building up the knowledge infrastructure through training researchers in the scientific and business operations of biomedical sciences companies. It will also lead to the commercialization of impactful drug discoveries," said Philip Yeo, chairman, National Science and Technology Board (NSTB) and co-chairman, EDB. "Lilly's commitment to set up an R&D center in Singapore is a testimony to its strong confidence in Singapore's biomedical sciences research capabilities. This center will enhance Lilly's existing research activities globally and provide a boost to the growing private sector R&D in Singapore."

Other than the new CSB, Lilly's activities in Singapore include a clinical pharmacology center that is a joint venture with the NSTB and the National University of Singapore. It is expected that the CSB will complement on-going research efforts at the clinical pharmacology center.

About Eli Lilly and Company:

Lilly, a leading innovation-driven corporation, is developing a growing portfolio of best-in-class pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers -- through medicines and information -- for some of the world's most urgent medical needs. Additional information about Lilly is available at www.lilly.com.

About Singapore EDB:

EDB is the leading government agency that plans and executes strategies to boost the Singapore economy in the manufacturing, manufacturing services and traded services sectors. Set up in 1961, it has played a key role in transforming Singapore into a first-world business location of choice, at the forefront of the most competitive global economies. Information about the EDB is available at www.sedb.com.

Through its Biomedical Sciences Group, the EDB promotes and enhances the range of biomedical sciences activities and ensures that there is a sound infrastructure to support such activities in Singapore. With an international network of 16 offices around the world, the EDB interacts with both established and growing biomedical sciences companies in the pharmaceutical, biotechnology, medical devices and healthcare services industries. Information on the biomedical sciences industry in Singapore is available at www.biomed-singapore.com.

About Singapore NSTB:

The mission of the NSTB is to encourage, develop and nurture scientists in scientific and engineering research and indigenous capability development for a knowledge-based economy in Singapore. This will be achieved through collaboration with tertiary research institutions in Singapore and abroad. The board is organized into two research councils, namely the Biomedical Research Council (BMRC) and the Science and Engineering Research Council (SERC). Information about the NSTB is available at www.nstb.gov.sg.