Lilly Drugs Stolen

Lilly Drugs Stolen

About three weeks ago the Eli Lilly & Co., a pharmaceutical manufacturer, suffered a $75 million loss when thieves broke into a warehouse and stole a tractor trailer full of drugs. Amazingly there were drug thefts in the U.S. totaling $184 million last year and $110 million so far this year. For some reason this is the first time these thefts have been generally publicized, probably due to the dollar amount of the single massive theft. You can read in the paper almost every day about banks and convenience stores, or for that matter, any kind of store being robbed just about every day in the more urban areas. Julian businesses should be on alert, that although it may be rare, it could happen here. In this economy, when it comes to robbery, apparently anything goes. Especially when it comes to selling prescription drugs. More than likely a company of Lilly’s size has insurance to cover their loss, but a real tussle between Lilly and the insurance company can be predicted. Lilly will ask for the $75 million loss in full, which is what someone without any drug coverage would have to pay. They will finally offer to settle for about half that amount, which is what a drug insurance plan might have to pay. The insurance company will stoutly refuse and offer to pay the actual cost of production of the drugs, which will probably be in the neighborhood of $51,000.

©2010 Eric Stamets