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Cablegate: Ace Nomination From Amemb Pretoria for Eli Lilly And

VZCZCXRO4180
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSA #1227/01 1610530
ZNR UUUUU ZZH
R 090530Z JUN 08
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 4690
INFO RUEHTN/AMCONSUL CAPE TOWN 5669
RUEHJO/AMCONSUL JOHANNESBURG 8090
RUEHDU/AMCONSUL DURBAN 9879
RUEAUSA/DEPT OF HHS WASHDC
RUEHPH/CDC ATLANTA GA 2345
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE

UNCLAS SECTION 01 OF 02 PRETORIA 001227

SIPDIS

DEPT. FOR EEB/EPPD: N SMITH-NISSLEY, AF/S, OES/IHB
STATE PLEASE PASS OGAC: BPATEL; WCOGGINS
STATE PLEASE PASS TO USAID/W FOR GH AND AFR/SA
HHS/PHS FOR OFFICE OF GLOBAL HEALTH AFFAIRS WSTEIGER
CDC FOR GLOBAL HEALTH OFFICE SBLOUNT

E.O. 12958: N/A
TAGS: ECON BEXP EINV ELAB ETRD AMGT SOCI TBIO SENV SF
SUBJECT: ACE Nomination from AMEMB Pretoria for Eli Lilly and
Company, South Africa

PRETORIA 00001227 001.2 OF 002


REFTEL: STATE 34994

1. Summary: The U.S. Mission in Pretoria nominates Eli Lilly and
Company, South Africa (Lilly SA) for the Secretary's Award for
Corporate Excellence in the multi-national enterprise (MNE)
category. Lilly SA's pioneering initiative to fight the rapidly
growing threat of multi-drug resistant tuberculosis (MDR-TB) in
South Africa (SA) and around the world makes it an exemplary model
of good corporate citizenship. A centerpiece of parent company Eli
Lilly and Company's (Lilly) global MDR-TB Partnership is the
transfer of technologies and expertise needed to manufacture two
Lilly antibiotics used to treat MDR-TB to facilities in countries
most burdened with TB. This technology transfer is essential to
achieve Lilly's goal of increasing the supply of critically needed,
quality, affordable, second-line TB drugs. Lilly SA has transferred
its formula, technology, and trademark to generic drug-maker Aspen
Pharmacare (Aspen) in South Africa. Lilly SA's MDR-TB partnership
contributes to the overall economic and social development and
welfare of South Africa, while furthering the growth of competitive,
innovative activities and scientific capacity. End Summary.

--------------------------------------------- --
Lilly Partners to Fight Multi-Drug Resistant TB
--------------------------------------------- --

2. Highly contagious MDR-TB afflicts about 450,000 people each
year. The World Health Organization (WHO) estimates that the average
MDR-TB patient infects up to twenty other people in his or her
lifetime. MDR-TB is much more difficult and costly to treat
than non-drug resistant TB and is often fatal. Lilly SA supports a
comprehensive, multi-pronged strategy to fight MDR-TB through
efforts to increase the supply of drugs that can cure this
life-threatening disease, train health care personnel, and focus
public attention on prevention, diagnosis, and proper treatment.
Lilly SA's MDR-TB Partnership also concentrates on ensuring that
patients are not subject to stigma within their communities. On
World TB Day 2006, South African Nobel Peace Prize Laureate
Archbishop Desmond Tutu declared that the Lilly MDR-TB Partnership
is an "excellent example of coordinated action against the
disease."


3. Lilly SA's MDR-TB Partnership with Aspen began in 2004 and is
increasing the supply of two much-needed MDR-TB antibiotics that
will be supplied to the WHO at discount prices. It involves a
transfer of intellectual property, technical know-how and training
related to the manufacture, testing, packaging, storage and handling
of active pharmaceutical ingredients and finished dose product for
cycloserine (Seromycin(R)) and capreomycin (Capastat(R)) and aims to
develop a south-to-south quality and efficient supply chain. The
Partnership includes: training funded by Lilly SA and provided by
Purdue University in good manufacturing practices, transfer of Lilly
SA's customers and supply chain to ensure sustainability, a $3
million dollar commitment for the establishment of manufacturing
plants and an additional $1.6 million investment to date in the
project, with an additional $2.5 million anticipated investment
Qproject, with an additional $2.5 million anticipated investment
through 2011. In conjunction with the transfer, Lilly SA provided
the first in-country specialized lyophilizer (freeze drying) machine
for the manufacture of the product, contributing to the development
of local scientific and technological capacity.

4. Aspen staff have been trained to manufacture, test and release
cycloserine capsules. The factory has the capacity to produce over
four billion capsules of cycloserine per year. The ability to
manufacture cycloserine locally is essential to treating the
explosive epidemic of MDR-TB in South Africa. The factory
manufactured its first batch of cycloserine in 2006 and Aspen
cycloserine is currently being supplied to South Africa, southern
Africa and other world markets. Objectives for 2008 include
obtaining WHO product pre-qualification of the product dossier and
supplying the drug to WHO and all markets outside of the U.S.
previously supplied by Lilly.

5. The manufacturing facility for capreomycin vials was completed
at the end of 2007. Aspen staff will be trained to manufacture,
test and release capreomycin in 2008 and will submit a dossier to
WHO for product pre-qualification at the end of 2008. Lilly SA
donated 3,000 vials of capreomycin to the South African Department
of Health (NDOH) and made provision to supply an additional 6,500
vials should the need arise for treatment of MDR-TB and Extremely

PRETORIA 00001227 002.2 OF 002


Drug Resistant TB(XDR-TB).

-------------------------------------------
Lilly Launches Innovative Training Programs
-------------------------------------------

6. Lilly SA has launched innovative educational, training and award
programs to fill critical gaps in health care training. Lilly and
the International Council of Nurses (ICN) created a pilot "train the
trainer" program for nurses on TB and MDR-TB for delivery in
southern Africa with the Democratic Nurses Organization of South
Africa (DENOSA) and the NDOH. The program trained seventeen nurses
in South Africa in 2005 who used the knowledge they gained to train
more than five hundred other nurses. The program also trained
twenty nurses from Botswana and twenty from Swaziland in 2006.
"Through this unique and effective partnership, the ICN and nurses
on the ground aim to bring quality, dignified care to communities
and individuals living with TB, improved adherence to treatment, and
strengthened prevention strategies," said International Council of
Nurses CEO Judith Oulton. "We are convinced that the
cross-sectoral, multi-disciplinary approach of the Lilly Partnership
will lead not only to better outcomes for TB and MDR-TB patients,
but also a reduction in disease burden and drug resistance. This is
an innovation that works," she continued.

7. Lilly SA and the International Hospital Federation in 2006
piloted the first-ever training for Hospital Managers in South
Africa in partnership with DENOSA, the NDOH, and the Foundation for
Professional Development. Lilly SA and the NDOH sponsored a ten-day
intensive MDR-TB training for thirteen doctors and nurses from seven
of the nine provincial MDR-TB Hospitals in South Africa at the World
Health Organization (WHO) and Centers for Disease Control (CDC)
Center of Excellence facility in Latvia. Lilly SA, DENOSA and the
NDOH launched the global ICN/Lilly Award for Nursing Excellence in
TB Care in 2007. A nurse from Mpumalanga province in South Africa
won the first award which was presented on World Nurses Day in May
2007.

8. Lilly SA launched the Lilly for Life Achievement Awards in 2006
to celebrate achievements of people of all ages who live with
diabetes, as well as those who have positively impacted the diabetes
community with their personal or professional efforts. The awards
acknowledge and honor people who are living full, healthy lives,
despite the fact that they have diabetes, and those who support
others with diabetes. The awards enhance public awareness of
diabetes and its symptoms, which can be a life-threatening disease
if not managed properly.

--------------------------------
Lilly - A Leader in South Africa
--------------------------------

9. Lilly SA places a significant emphasis on the development of its
employees and has consistently been recognized as one of the
top-twenty best employers in South Africa. Lilly SA was recognized
as one of the "Top 5 Best Companies to Work For in South Africa" and
the "Best Pharmaceutical Company in South Africa" in 2005. Lilly SA
is committed to the South African government's policy of Broad-Based
Qis committed to the South African government's policy of Broad-Based
Black Economic Empowerment (BBBEE) for previously disadvantaged
people and has made progress across all seven BEE compliance
categories, including skills development and employment equity. The
company philosophy is one of equal opportunity and all staff have a
customized plan to best assist them to realize their potential.

10. Lilly is headquartered in Indianapolis, Indiana and views
protection of the environment and the health and safety of its
employees, contractors and visitors as fundamental values that must
be pursued vigorously. The company has established health, safety
and environmental policies, procedures and programs that apply
worldwide to promote safe and healthy working conditions, protect
the environment, and support its commitment to compliance with
applicable laws and regulations. Lilly SA is committed to working
only with suppliers that are in full compliance with local laws and
Lilly SA's standards of social, environmental, and economic
performance. Lilly SA conducts its business consistent with all
U.S. and local laws, regulations and government standards, and is
committed to honesty in its dealings with employees, customers,
suppliers, competitors, shareholders, and communities.

Bost

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