1. In Vivo

GE's Pharma Ambitions Lead to a Lilly Deal

GE Healthcare's joint research collaboration with Eli Lilly is small and easy to miss. It's very early stage and doesn't involve money exchanging hands. But it's the first manifestation of GE's efforts to expand its relationships with pharma companies following its acquisition of Amersham PLC. GE will comb Lilly's extensive molecular libraries for targets that could help diagnose Alzheimer's disease earlier. GE could turn these targets into imaging agents. Lilly is eager for tools to help diagnose and manage Alzheimer's disease because it has several Alzheimer's drugs in development.

General Electric Co. 's joint research collaboration with Eli Lilly & Co. in Alzheimer's disease [See Deal] is easy to miss. It's focused on very early-stage discovery, it's not exclusive, it doesn't involve exchanging money, and it will take years to obtain revenue-generating results. But it's the first manifestation of GE's efforts to broaden its reach to pharmaceutical customers, part of a general strategy that aims to grow its total health care business by double digits in the next five years.

A year after its $9.4 billion acquisition of Amersham PLC (now GE Healthcare Bio-Sciences Inc. ) [See Deal], GE is now the world's largest diagnostics company, with solid...

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