Eli Lilly and Company, which employs more than 10,000 people in the state of Hoosier, says it will be “forced to plan for more employment growth outside of our home state.”
The Indiana-based pharmaceutical giant made the disclosure in a statement on Saturday after it passed a near-complete ban on abortion in the state. Eli Lilly is the manufacturer of drugs such as Prozac and Cymbalta.
On Friday, Indiana Governor Eric Holcomb signed Senate Bill 1 into law, making his state the first to impose an abortion ban since the Supreme Court’s decision to overturn Roe v. Wade.
The ban, which comes into effect on September 15, will allow abortions for rape, incest, if the mother’s life is in danger or if “the fetus is diagnosed with a fatal fetal abnormality.”
Indiana Governor Eric Holcomb said after signing the abortion ban: ‘I am personally most proud of every Hoosier who came forward to boldly share their views in a debate that is unlikely to end anytime soon’
Eli Lilly is headquartered in Indianapolis.
“Lilly recognizes that abortion is a divisive and deeply personal issue with no clear consensus among the citizens of Indiana,” said a press release.
“Despite this lack of agreement, Indiana has chosen to swiftly pass one of the most restrictive anti-abortion laws in the United States.”
There are more than 37.00 Eli Lilly employees worldwide. In the second quarter, the company had revenues of $6.5 billion
The company argued that the new ban will hamper their efforts to bring in “diverse scientific, technical and business talent from around the world.”
“While we have expanded coverage of our employee health plan to include travel for reproductive services that are not available locally, that may not be enough for some current and potential employees,” Eli Lilly said in a statement.
“As a global company headquartered in Indianapolis for more than 145 years, we work hard to retain and attract thousands of people who are key drivers of our state’s economy.
“Given this new law, we will be forced to plan for more employment growth outside our own state.”
There are more than 37.00 Eli Lilly employees worldwide. The company posted revenue of $6.5 billion in the second quarter. Eli Lilly has a market cap of $292 billion.
After Saturday’s statement, Politico’s Adam Wren tweeted: “Lilly consistently declined to comment on the legislation until the bill was signed.”
In July, WTHR reported that Eli Lilly declined to comment publicly on the possibility of an abortion ban in the state. The specific question was whether the ban would affect their ability to recruit new staff.
Also in July, the ACLU released a letter opposing the potential ban, signed by more than 200 Indiana companies. Notable for their absence as a signatory was Eli Lilly, reported the Indianapolis star.
Another major Indiana employer that did not sign the letter, engine manufacturer Cummins, released a statement Saturday saying: “The right to make decisions regarding reproductive health ensures that women have the same opportunity as others to participate fully in our workforce and that our workforce is diverse.’
The bill has also been opposed by the Indiana Chamber of Commerce.
In May, Eli Lilly announced that the company would invest more than $2 billion in two new plants in Indiana. The new plans would create 500 new jobs at the company and 1,500 construction jobs.
Eli Lilly CEO David Ricks, pictured here, said in a speech in April: ‘Health, life and inclusion, overall, I think conditions are scoring badly nationally in our state’
Ricks has not personally commented on the abortion ban following his company’s statement on Saturday
But in April, Eli Lilly CEO David Ricks alluded to the state’s political climate in a speech at The Economic Club of Indiana: “Our level of education in the state is not good. The ability to retrain staff could be improved I think. Health, life and inclusion, in general, I think the conditions are bad nationally in our state.”
He concluded: “And also the readiness of the staff, also related to retraining, is an obligation for us,” reports WISH TV.
The company told the Financial Times that despite Saturday’s press release, they would honor their “current obligations” to Indiana.
White House press secretary Karine Jean-Pierre said of Indiana’s new law: “It’s another radical move by Republican lawmakers to take away women’s reproductive rights and freedoms”
David Hoppe, the chairman of Gen Con, one of the largest gaming conventions in the US, said in a news conference on Wednesday that the potential abortion ban would affect the convention that commits to staying in Indiana.
The convention takes place this weekend in Indianapolis.
While the Indiana Hospital Association said the Indiana Republicans “created an atmosphere that will be perceived as hostile to doctors.”
Across the country, several companies have threatened retaliation if the state passes abortion bans. In Pennsylvania, Duolingo, the education technology company, said they would move their headquarters out of Pittsburgh if an abortion ban were passed in Pennsylvania.
Companies such as Apple, Kroger, Amazon, Bumble Inc., Citigroup Inc. and Levi’s have announced they will offer employees resources for reproductive care, such as paying for travel expenses.
On Tuesday, Kansas voters rejected a vote that would have given state lawmakers the power to enforce a total ban on abortion in the state.
Karine Jean-Pierre, White House press officer, said of Indiana’s new law: “It’s another radical move by Republican lawmakers to take away women’s reproductive rights and freedom and put personal health care decisions in the hands of politicians instead of women and their doctors. ‘
Governor Holcomb said of the bill: “Personally, I am most proud of every Hoosier who came forward to boldly share their views in a debate that is unlikely to end anytime soon.”