NEW YORK (TheStreet) -- Eli Lilly (LLY) - Get Report CEO John Lechleiter has announced he will retire from his position of eight years at the end of 2016, CNBC's Joe Kernan reported on "Squawk Box" Thursday.

"It's a great time for transition at Lilly. Because we've gotten through this period where we have these patents expiring. We're back to growth," Eli Lilly CEO John Lechleiter told CNBC.

The company saw 9% revenue growth in the second quarter and plans to launch new products soon, Lechleiter noted.

The board of Eli Lilly has chosen to replace the CEO with Senior VP David Ricks, who has been heading a large part of the company's commercialization and product development.

"I think he's the best person to lead the company from this point forward" Lechleiter said.

The company's plan since 2014 has been to put out 20 products in a 10-year period.

The healthcare industry is moving towards the idea of not paying for inputs but paying for results and those at Eli Lilly are welcoming that idea because they believe in the value of their products, Eli Lilly's David Ricks told CNBC.

The company has partnered with Anthem (ANTM) to make policy changes that allow the pharmaceutical industry and the insurance industry to follow the recent developments in healthcare, he said.

Shares of Eli Lilly are down by 1% to $82.57 this morning.

Separately, TheStreet Ratings team set this stock as a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. TheStreet Ratings team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: LLY

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