Jan Lundberg, Eli Lilly ($LLY)
2012 pay package: $4.85 million
2011 pay package: $4.42 million
2012 Compensation: $978,500 in salary; $2.25 million in stock awards; $1.25 million in incentive pay; $307,275 in pension growth; $58,710 in other compensation
Before joining Lilly, Jan Lundberg served as executive vice president and head of discovery research at AstraZeneca ($AZN). Previously, he taught pharmacology at the Karolinska Institute in Stockholm, Sweden.
Since Lilly brought him on board in 2010 to lead R&D, Lundberg has seen Amyvid, an Alzheimer's detection aid, through FDA approval and netted a new indication for Cialis in benign prostatic hyperplasia.
News has been less good for Lilly's other Phase III compounds. The company endured failures with the late-stage Alzheimer's drug solanezumab, the B-cell lymphoma drug enzastaurin, and the late-stage schizophrenia drug pomaglumetad methionil, among others. None of this is helping CEO John Lechleiter's quest for new revenue, as sales suffer from major patent losses. Medicare's rejection of routine Amyvid use in Alzheimer's diagnosis won't help much, either. Despite the recent R&D setbacks, Lundberg still received a 9.72% raise.
Still, all is not lost: The company presented positive data for its diabetes drugs dulaglutide--and, to a lesser extent, empagliflozin--at the American Diabetes Association annual meeting in June. Analysts were particularly intrigued by the dulaglutide data, which showed it beat several rivals at controlling blood sugar. And analysts are anxiously awaiting arrival of late-stage data on the cancer drug ramucirumab.
Even if just one of Lilly's high-risk Phase III drugs comes through, like its CETP drug evacetrapib, the pharma giant may just be able to beat a rep for consistent failure. But it will need to win big, and soon. Until then, everyone at Lilly has to work with a freeze in base pay as new generic competition looms.
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-- Skye Toor