Eli Lilly CEO: Recent Event In China Doesn't Change The Long-Term Opportunity And Strength Of The Market

The slowing of China's economy and the strength in dollar are significantly impacting companies with significant international presence like Eli Lilly and Co LLY. John Lechleiter, Chairman, President and CEO of Eli Lilly was on CNBC Friday to discuss how the company is dealing with these issues.

Long-term Opportunity In China Hasn't Changed

"Our sales today in China are modest in terms of our global sales," Lechleiter began. "But as we look at China, we see the world's largest market for healthcare emerging. So, we have a significant investment there. We have R&D there, we have manufacturing obviously, we have sales, we do clinical trials in China. So, we are watching this very closely."

Lechleiter went on, "I think, though there's no question that as china moves down the path of economic reform and, I think, there's a commitment to that on the part of the government. I expect we are going to see things move at times in fits and starts. And I believe as a business person we have got to keep our eye on the longer term picture there. The opportunity in China and the strength of the market long-term, I don't thing has changed based on these recent events."

Hard To Change Business Strategy Based On Currency Movement

Lechleiter explained how the company is trying to combat the strength in the dollar apart from hedging, saying, "We tend in these times to obviously control costs, but also to look at the underlying business - are we growing volume?, are we growing share?, are we positioning ourselves well with our key brands and our key market? Currency it's very difficult to change your business strategy based on the way the currency goes."