LLY - Earnings call transcript Q1 2018

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Eli Lilly and Company Q1, 2018 earnings call. At this time, all participants lines are in a listen-only mode. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the conference over to Dave Ricks. ahead. go Please

David Ricks

you Company’s Thank Ricks, us Eli for Chairman Good quarter for XXXX and first CEO. Dave earnings Lilly and morning. joining call. Lilly’s I’m

Financial are Joining and today’s and Jeff Lilly our Oncology; Lilly Mahony, of President Josh Christi Officer; Sue Diabetes and Elanco Dr. Simmons, of Smiley, of me President Lilly Enrique call Animal Bio-Medicines; our President on USA; Shaw, the Conterno, of Chief Health. Lilly President

Hern by and Relations joined We’re Kristina the Heaney, Kevin Johnson Wright, Investor Phil also team. Jim of

growth We our also been thank has Jan for want end series products. our Research We is joined Dan for for the our successful the first Jan Dr. Jan the incoming as Laboratories. time key by succeeding the to Lundberg years Skovronsky, to success at of to all May. navigated company. we contributions Lilly who retires his to YZ President return of of Dan and

based and call, conference this During statements we current making projections expectations. forward-looking on anticipate our

of EPS XXXX a growth Our and outlined XX% The actual listed our investment and only. revenue and with Commission. to Securities X growth to intended a decisions. the provide growth. XX% on we is Forms Slide could is including start. not prescribing those first non-GAAP It due to not of quarter the factors, products of number our and off be XX-Q and those latest is Exchange XX-K we is income a filed the differ about pipeline for information in results community which materially benefit for promotional and non-GAAP leveraged operating sufficient it With X%, good into

markets growth. Trulicity, launches the continue continue scale international worldwide our Jardiance Taltz, in up. to and both Led products to and drivers of pharmaceutical growth with New where by US Basaglar, be revenue

declines growth on established of loss resulting offset of product from New products. exclusivity than revenue more number a

margins to addition, this expand continue quarter. our we In

mg inventory And metastatic of line points as study based doses. international percent Positive additional X Pipeline percent by progress high Taltz Phase X first operating XX.X%. approval as quarter included of sold QX a at breast Phase study non-GAAP increased of with gross FX, basis XX of cancer of by mg and the Excluding XXXX. an our for launch positive income for revenue X And non-GAAP in in MONARCH indication also Cyramza a XXX to X over the Verzenio second studies X.X effect nearly on spondylitis, for points the Phase increased margin revenue this X a the for and AFP of data. initiation liver ankylosing cancer. line patients of Trulicity basis

supported RA pleased the overall, While we that dose. the Arthritis efficacy X-mg X-mg X-mg of did committee of both and and Advisory the X-mg that disappointed the baricitinib the FDA in recommend are we not are Committee of approval

which to confident are by with more in both generated and approved the baricitinib We'll in doses the the supported We data FDA RA, benefit-risk work the both by clinical application. to-date, of than important XX of available. patients X-mg X-mg and in with and on the treatment experience are this for continue countries profile

$XXX of the events a collaboration million detail We with treatment to capital encapsulated on announced strategic on progress QX of therapies sharing and earnings cell key type are making anticipate stock deployment, returned billion $X.X Sigilon expected Elanco our July. review January Slide X conclusions terms our still contains purchased the develop In we we and call. strategic more on call And via since diabetes. this dividend. earnings for X of nearly our

XXXX. to the results on and financial QX provide an guidance to Now turn for would call our to update our like Joshua over I review

Joshua Smiley

measures. non-GAAP Thanks Dave. Slide and GAAP results X summarizes our presentation of

provides Slide provide our trends comments insights our summary results. the into on measures business. adjusted While underlying of to in focus GAAP our I'll X non-GAAP my a

earnings today's a of GAAP to for refer please first-order press detailed changes release So results. description in the our year-on-year

on of Gross X, margin the X% inventory XX.X%. effective you'll the slide mentioned non-GAAP on percent decreased revenue rates earlier. This was Dave increase due see that Looking as revenue exchange of measures foreign to sold. decrease the at to a international

This points to our actions margins, $XX.X by actually year. income restructuring increase cost mix. expense prices quarter. and basis a continued accelerated declined of our administrative this and expense our X% reflects year's percent to gross we XXX significant FX with expense and with compared decreased income compared the higher offset last driven XXXX. Other late of marketing, R&D structure realized took quarter revenue as X% manufacturing decreasing million operating expenses effect, roughly last product X%. XX to efforts by Total Excluding efficiencies, in percent $XX.X margin a and increased expense improvement by income million Total as operating this of points, basis partially selling decreasing and revenue by reduce QX, of

expenses, growth, XXX Our the shares the tax growth compared digits driven of our revenue tax shares EPS. We due reconciliation faster %, impact by XX.X last decrease outstanding a and same points Slide reducing US between a share quarter. positive per to again increased slightly reform. repurchase. at earnings the XX%, achieved At XX% quarter significantly earnings income in rate delivering line, X while year, basis was net while of bottom a with operating this increased by creating high a reported provides leverage non-GAAP reduction single significant from primarily

slide XX. on details these You'll find on additional adjustments

let's So the moving and a rate growth. revenue take volume effective price on Slide look at XX, to

exchange volume. effective performance our on this basis both four revenue provided X%, the price benefit, foreign worldwide excluding percentage growth a by quarter a point This driven was and

drove XX% extent straight US geography. increased into by growth For Pharma revenue a fifth our volume. price each volume a in quarter, business Pharma human driven major lesser

Strattera Axiron volume and the growth driver growth and XX%, with generic of Our diabetes primary decline by offset in of for Basaglar, and portfolio products. a due to Cialis of and led the Jardiance Effient exclusivity erectile by entry volume disfunction by for Trulicity, of the was losses

excluding it's XX% noting worth quarter an and LOEs, rest total. that products impacted related portfolio. rebates when our US also across Pharma, anticipated by utilization was adjustment of the for in in US primarily favorably discounts, For growth to the US by approximately than price grew Medicaid the lower

Medicaid segment in recent plateaued While US our we has that business, segment in months. remains years this growth we a in past significant experienced several of the the estimate

the new of exclusivity product entirely driven Cialis. excluding We've the our Europe. to been Pharma that grew volume despite pleased for loss revenue FX, performance Moving X% overall with region. across the of portfolio by

the X% XX%. nearly Olumiant, growth of Japan, from partial volume offset price the volume led the of driven impact by Cialis LOE namely and price biannual impact of Jardiance, Taltz revenue the in increased the with a Taltz, was Jardiance cuts. grew volume new In products FX, pharma excluding Excluding Lartruvo, and Basaglar. This Trulicity, by Trulicity,

Our basis by pharma growth on Forteo. quarter, a Humalog volume of the led X% performance and revenue in the world rest Trulicity, this of increased

Turning health. to animal

results As this we second been noted half we've this top-line expectation. during in our our and to with QX earnings of growth on track are QX return expecting year, call, the to

highlight, excluding manufacturing exit. activity BIUS These I decision the as the increased legacy terminated and performance FX, this made X% Excluding impact came contract exits quarter. when in vaccines the as of US X% strategic are in the declined to distribution that that we've QX however, terms Elanco revenue X with revenue acquisition, products actually strategic agreements well Posilac.

exits. core You'll up strategic ongoing revenue seeing encouraged We're or we slide of revenue growth health the excluding our business. those see provided animal trends we're our a that back drivers quantifying the with in

products in XX New million the in our quarter. portfolio contribute drove PLUS Credelio, products These XX% QX, driven INTERCEPTOR Galliprant. primarily new animal up and companion core $ by

to food QX, primarily QX, decreased products ahead grewXX%, deliver competition, core to well growth our our buying patterns food poultry due the see though expect business portfolio. and as core business continued animal X%, strong growth. In Our for market we well U.S. full-year importantly overall animal XXXX, poultry of as ractopamine the in continue

a this in growth, out point sign I the our overall price foundations solid industry. with of quarter Lastly, consecutive which second is is

expect We through to XXXX. continue this growth price

We about insights we health questions impact trade activity Jeff you the see impact can the export provides if we closely have are not our growth animal health and address cautious economic into you this business, while our with useful in monitoring broader animal Hopefully, do situation the and declines. are may immediate session. to revenue Q&A

Trulicity, look Olumiant, Basaglar, worldwide the So Jardiance, the take In including Verzenio, drivers now our engine at on XX. Slide of our total, growth Taltz, Cyramza let's growth. products of new volume were volume and Lartruvo a worldwide our

XXX product basis our quarter XXX Zyprexa, health volume You drag our respectively. declined that these highlight exclusivity while revenue in over of XX.X growth and and the of basis Cialis Axiron these of points and a Slide new XXX represented total launch. points The brands loss drove of generated a and of uptake. second quarter, percentage progress in accounted this can our of nearly revenue. $X.X quarter provides of worldwide provided volume this Verzenio for billion like Strattera, of to products In XX Cymbalta, Evista a I'd view total, see Effient, animal points, quarter.

which received with and the therapy. analysis at of that pleased in survival, studies than patients as benefits MONARCH breast broadest Last with MONARCH the of more patient showed us of clinical across at XX.X presented approval now to Xdata substantial which subgroups cancer the in new metastatic is in well the giving analysis all are months in better characteristics which indication, we MONARCH X first to AACR, the in label as class. growth final XX% addition We placebo, line months progression-free concerning Verzenio new continued the week than shared the endocrine brand the the certain demonstrated X

to Moving Slide XX.

the quarter more largely significant on results, by driven our This euro. effect a had FX

increased can X%, revenue increased non-GAAP Excluding and just see XX%. FX, non-GAAP of X% sales you that cost EPS increased

our guidance on financial XXXX to Slide XX. Turning

change our top marketing, increase as well end and foreign we've An our the income. admin to OID, earnings mix FX GAAP in both expenses and share. as additional in that the of as Medicaid reflect as an utilization, and for see will which rebates on of our line, to funding GAAP of estimates These reflects R&D in A per guidance for to million in the for expected XX% of range decrease increase to by updated to driven movements. additional $XX selling, expected updates pipeline XX% rate and geographic from changes an opportunities. increase movements, account impact to discounts, top for well tax lower rate a million exchange $XXX non- contribute You slight in

an the of range. $X.XX, midpoint at earnings now be increase non-GAAP the of is XX% which is to to expected per Our $X.XX over XXXX share

call view will the review I and Now future the to turn Dave to back bets. pipeline key over

David Ricks

select XXth NME for shows immunology. Phase XX the antibody and NILEX Slide A line the of April approval Thanks our include last X doses. and as Trulicity since cancer X earnings for in mg metastatic first for treatment Joshua. of CGRP call Phase starts in IL-XX A of for movement baricitinib starts the US. breast X biospecific mg X.X the

of as this combination novel trial While we design. trial base look have and attrition continues, the seeing antibody we the X monotherapy, with the in molecule forward and to NXpG Phase inhibitor results

our also pancreatic abemaciclib discontinued cancer study. We

You'll NME pipeline view. and combined see we've our one into NILEX

need. the positioned robust we bolster and Jardiance, In categories. like NILEX X.X Verzenio, highlight expect key and in Jardiance. brands Trulicity mg continue On for Key growth heart AxSpA Olumiant, events Olumiant XXXX. the opportunities for and for NILEX, with breast atopic areas and Taltz, Slide study of for dressing to we These The a XX, important Boehringer have for products, well dermatitis expected Taltz, which recently Verzenio. set medical our include terms of for which In unmet some opportunities of for mg for cancer is collaboration fastest launched prospects growing Trulicity, products high we in lifecycle dose failure X largest are of adjuvant will Ingelheim.

the combination the PDL-X with of we've as noting chemotherapy AACR non the the that half regardless alone study In first keynote risk of showed of platinum treatment approval at disclosure overall data cancer, cell lung breast in Keytruda benefit metastatic first-line with patients. survival of plus Alimta, The addition non-squamous, chemotherapy was small indicated cancer US which death status. expression reduced compared by XXX line to metastatic, in robust Verzenio for

survival. announced bladder to not action last events statistical forward There the that in reach XXXX, significance overall many study for endpoint Alimta. X the to Phase US secondary also Cyramza We cancer of in the in did week expected notably galcanezumab, baricitinib, and look Verzenio regulatory are

in Taltz including ulcerative readout ramucirumab data of forward for for study spondylitis. the ankylosing rewind and X the studies the phase of psoriasis for We phase the initiation X to our anti also second several study The look of colitis. IL-XX of readout Trulicity, and

and and launch our the We QX, realized cost Before phase we for the XX% performance pipeline breast X% the basis accounted when And X points we've total let returned human our in with nearly by of pharma in the positive growth. business indications operating briefly arthritis Cyramza. both progress new Taltz despite of recent animal metastatic exits, expansion Q&A US. the of to first new The excluding significant for health this session, line the in me go efficiencies for FX. revenue. margin cancer progress Volume quarter products strategic revenue, made sum data leading XXX And up Taltz Germany human psoriatic XX% to grew this Verzenio for of to positive Pharma in structure main and patent launch our we business excluding have expirations. our quarter. of In in

returned shareholders remarks. we to Finally, our and via concludes billion repurchase. share prepared This $X.X dividend the

turn I'll the the Phil Q&A over Johnson call to to session. Now moderate

Phil Johnson

would We callers questions to session. during from as Dave. possible take like many Q&A the you, as Thank

do single we're the for provide for ask limit can you that instructions session then your ready to question. first and you a two Lia, to questions we caller. So or the the Q&A two-part

Operator

line Bank. with [Operator Instructions] of ahead. Please Greg question Our go is first Gilbert from Deutsche

Greg Gilbert

Thanks. Good team. morning,

terms outside the have love Lilly mix to expecting types about to of of of as congrats What secondly the put to with drug would opinion do positioned are US your can in and in post the changes talk you'd Bari potential your relative Dan, of least subject pricing bolster your is safety you case Dave, conceptually think use And at in you US. You First, of to any that but the new strengths changes? marketing and you role. how the you like data forth? specific can the on administration those be Thanks. you FDA?

Phil Johnson

Great, thank you for questions. the

to US be going our pricing. may on doses Christi? o-US the helpful Christi Dave that of actually you'll have the to outside President your have are the two and take of present And as to on case We any then drug different Shah, Lilly data question use the Bio-Med FDA. the question we

Christi Shaw

of countries continues that submitted are vote see for the XX And with showed approved. So hold patients mg and will mg we signals US. FDA. on both in efficacy, we outside patients the the the the yesterday's have ADCOM the and mg is lives the use the think getting over really to the remarkable to that efficacy sure important X X US you X back the new of majority their safety I the different than to X no is And what up in unanimous continue

the and both the we X in patients. X mg those the for US want So approved

David Ricks

hard position the the relates well, comment of administration say speculate it's at pain pricing. at net mean pocketbook, what cash I the Part Lilly's which it Obviously, we've the normalize and as can impact spread. gross think that patients incentives been has create to I helped exactly most to been mandate Greg. to administration reducing or think list to This in the do, of think for commercial And take set and on pass-through the would on seniors I but will the as could would well be I in a is or plans D pharmacy long important both and that a pay drug think D. I rebate flow and as pharmas Thanks, I program. as proponents pass-through, Yes. topic been the experiments consumers big counter Part of rebate burden action prices leading counter, immediately to what either

So personally that that's that we've the be commentary, would surprise part of I long for. wasn't and stood something if

administration perspective. to commented of The positive has a that I and desire expect of own from lack see approve more discussion. of be topic And waivers on development be manage this increased flexibility to there. Secretary the a a of that. would market Part to mechanism that we Medicaid, think I would for our B giving So HHS programs. expect to their under states would variety then do forms in And see I

closely early Finally, there success trade signs the administration trade Korea markets with balance free drug agenda primarily on We've pricing we on this the incentives with to that. worked foreign which that some to are suppress had from US. We'll keep the agreement. of have exports

expense power advertising sharing to are new to create of which long think from sort use that the it needs equalize innovations, more that help becoming to R&D even US frequently industry. is trading takes the across I term, the

advocate innovate that years well that innovation, sure to can industry watch for we continue as that come. this and make choice, patient and innovation, for policies So carefully this as pro pro continue prosper can

front mind working those all of keep So and out, Greg. topics will are

Operator

good. with line go of SunTrust. ahead. Please It's John Boris Very the

John Boris

and Thanks results. congratulations taking the on the robust questions for

quantify since number therapy Olumiant, Just wholesaler clearly therapy much back heavily you the how call, that patient then number many on have patient in the or Novartis de-stock that to mg? towards on Olumiant. the just patient years also have it's on years clinical indicated Taltz, package and Can they years just but abroad of of you not they that X And skewed buyout. of or had a how of especially you

potentially of obviously on away copay In across free commentary then some penalizing provide a copay Taltz and on forward? you also topic lot products. patients your deductibles. a Can the on accumulators addition miss was accumulator giving going the are to of business And is impact that that

Phil Johnson

Thank John. you questions. the for Great,

out here best patient question to to for on the you the of and then start Olumiant with numbers going we'll give to years exposures if trial want the position who's program. some be figure clinical and Taltz Christi So the

Christi Shaw

And was can question -- give me term you with Taltz on the the clarity that

John Boris

the Taltz? initial quarter they the gave that in IL-XX I sampling. product a uptake impact Novartis indicated particular away think of lot How much through free did

Christi

inventory terms the were up So for QX. fact in sequentially the dollars. which demand QX, changes to for decline Taltz, some has in But our of our And NBrx QX we have in in did QX was XX% our quarter. terms rationale from grown first of biggest

on they make coming to provide that is we're doctors how the So comment get and program need. their demand access real their really sure our can't I accumulator inventories. medicine we through. think goal think to others, seeing actually I patients that The every they and count that

whether Dave So we that bit assistance but to that ensure also that to issues a date. cetera rebating, haven't little talked whether It's et patient's of copay about get earlier. had through passed access, that's important the

David Ricks

And follow-up. the room don't John of have on numbers that here patients think for some overseas are in then we the registries I in the

I some and you the patients the Dan do years exposure. of and on think trial have number information patient clinical program

Dan Skovronsky

Yes. Thanks, John.

safety So safety trials. patient establishes our XXX on data presented than clinical X, that based And baricitinib the clinical to was database from in years we for more the Committee the experience. Advisory in trial

Your the where patients outside question more they've referred exposed experience drug. to States, been United many, also obviously the commercial to the many

years have don't exposure. numbers we for exact Although, patient

exposure, As we any that safety you heard signals. new from extensive Christi, haven't despite seen

we while potential that this So is risk VTE of agreed a drug.

manifest experience. the seen clinical haven't We in that

Operator

of ahead. the Please Anderson go with is line Bernstein. Very That good. Tim

Tim Anderson

questions. A you. of Thank couple

Taltz. to back Going

Phase eclipse So to their comparing X of IL-XX J&J running trial in the Novartis class IL-XX IL-XX. is the is general in

or You these mechanisms the of development. on have market both either in

better indirect supposed comes mechanism in see X be will hoping on that say that maybe think of J&J past what I to you've data? one, know I'm this doesn't you in preview have Phase perspective Can on hoping And impact likely year. the GIP/GLP your you on trial what the Tremfya, what said question if data to see effective in a we're Taltz? second you And venue have is and psoriasis. you're some that potential out in favor the more So

Phil Johnson

the for Thank you question. Tim. Great,

GIP/GLP. your to Christi over to day question the IL-XX of Taltz, the for first So Enrique IL-XX versus you on you for then question the on and

Christi Shaw

Sure. mean, that so thank are more is efficacy. first say I goodness what would have of I higher patience we all, newer medications many providing for such

be where IL-XX, to going tap IL-XX, for speaking. lack they and market into really it's older great the the older patients are to So to time TNS that efficacy going spend relatively

we is not really too patients through we solidifying So dermatology arthritis patient due churn there, also psoriatic really have indication arthritis something we're the and might have and that to confident different, need later response psoriatic one off, they to first that the look have portfolio have modalities, then Specific quarter think very versus own ankylosing the only the head-to-head other completed. different efficacy this arthritis year that glad we specific and in be move are Taltz, believe each and future our our for psoriatic to in Humira, short-term, thing starting our will the to we really is there have kick that other, these one so data we it's indication not at but we as really each. studies the we both readout spondylitis two the of patients s

second of at the The be year. this will end

with the happening good Taltz chances lots our are a winning market we feel about place. and very So

Enrique Conterno

GIP/GLP to the will their pretty product when be hemoglobin is this an to clearly, GLP. quite weight sometime AXC loss, for about want comes it for been see high current this we've and hurdle a superior excited So, outcome we and

late this We or ADA year expect of that data we're going some later this next either be disclosing year. to

We have to see.

Operator

a ahead. is line Next Barclays. Please Meecham from go of Geoff

Geoff Meecham

lot Hey, question. guys. a the Good morning for and thanks

a have Enrique and more Just few diabetes. for

of And trajectory? you Jardiance Jardiance how guidelines, that great but just we've do the could but context growing if how has commercial Obviously maybe the but give point feel two I a that's seen class tipping Trulicity could what think be that then already just influential positive a want growth weaker haven't quite rewind help lot very it's be us mg for is you your to the questions think to like is approve negative So could And with do a been that? or relative like SLT-X Thanks. I been you current positioning. out? for play and dose do then just but it's know

Phil Johnson

thank the mg the implication. and for with baricitinib X to Christi question on for Trulicity questions commercial And And will over you first dose to Meecham, the you Jardiance. a Enrique go for question. you two then for

Enrique Conterno

Maybe to the start We Yes. is quarter because impact in have see market just increased having Trulicity in with that promotion launches the we see framing with quarters -- growth. have but basically acceleration, both solid continued Trulicity new basically but the seen market more strong we environment. some share we and growth performance a see good another competitive a good we very basically

and we I'm our well a position position under we from we access it's themselves. strong like basically have from experience estimated patient receive patient physicians, something that that but as sometimes the So very calling it's much finally

We and world an which real simply have efficacy excellent is delivered. very

in the extremely of So but we we us class for it we're will is and cardiovascular important us be we any outcomes. competitive believe very wind because Clearly, change excited about that this longer-term to that. need

XX% it to of of clearly growth Jardiance from has have As and seen basically related about established the the the to We that we very SGLTXs, in Jardiance prescriptions. we of still good pretty a patients, had important prescriptions have many good we the CBS. Clearly relates part estimate over have and SGLTX seen of class small but resumed in access of very overall very patients the the rebasing weeks. and exclusion the growth some particulars what still Jardiance been seen last been disease. QX vascular for we patients basically event with have diabetes post the few switch have a

working being Jardiance catalyst class. us Jardiance and of the for we're continued and So the opportunity the accelerate growth for is of growth to

Christi Shaw

question. Thanks the Geoff for

I is think an you standpoint. efficacy with saw needed for everyone from yesterday milligram really patients the the dose reinforcement by X

is both have and other actually ongoing. milligrams the both available and studies are doses to we goal X our So and study to the that X continue

Operator

JP ahead. Chris Morgan. with line go Next go we Schott to Please of

Chris Schott

much very for the thanks Great, questions.

the First quarter one in just the was the of on and Humalog performance some rebates.

you've healthy what year can you growth? volume work bit And dynamics the two that mix down My underlying that we is and just elaborate can what some Thank question saw is second So just there, about about price channel quarter? of question beyond of the Taltz with other was what's and the Are questions be second, could we this very in was more should under work quarter. the a quantify you first, in can just happening can sustainable? just trends talk dynamics pressures on quantifying terms benefit of volume channel you offsets that little about the down quarter thinking And but get we also the in just you. IL-XX? there think

Phil Johnson

you Chris. for question. the Thank

Just question. to understand the second

being U.S. that sustainable, mix mentioned You the or in products to focused specific is Humalog that more broadly across the portfolio

Chris Schott

broader love Humalog, trend with that to as was the but if a well. I hear is we'd there actually specifically

Phil Johnson

you in Taltz repeat a overall U.S. you Smiley, or or and our Okay. to for are going the the Very on for the of generally the to if Humalog channel talk we make Joshua mix mix. the to if good, Christi comments so then and about addition seeing over Enrique any dynamics. portfolio in if Enrique? one you across love

Enrique Conterno

Very good.

discounts. So course, when quarter that it to comes part of some essence, when the in seeing Part comes to strong it a and growing of specifically year payer Humalog. related the when part is claims payers continuing also see changes Medicaid slightly benefit of in some was rebates basically of of of that the that that lower of of -- to course we to and estimates Humalog throughout In QX. those We other we mix, changes. $XX mix Medicaid are quarter, comes favorable about it and are million benefits saw as basically dynamics other

we clear those Now, are broadly that something the that claims all incidents are. not the see our when Medicaid of the across it we but of portfolio look is pretty portfolio, is as products exposed as

Christi Shaw

dynamics need if their medications Sure, we we patients haven't and change that growth know volume and we million strong on $XX call saw us. future, the said And volume the we best in quarter there, need that's look price seen four out really one. inventory was about significantly the rebate. a to to look so I if its as specifically and but Novartis same the ours quarter case at growth, for the yet not

Operator

Yes.

We Citi. go Please have Andrew ahead. with line of Baum

Andrew Baum

assessments as Hi. know likely and to expectations expansion in new pay Thank questions, on expected update oncology particularly then go XXXX for might on Couple for externally. please. competitor transpired, your Could not from yet and and And immuno Difficulty] the expectations assumed [indiscernible] see well I but to development business potential this which stalling a XXXB just health third-party that data for we of Second, flow that have my you could you. the in the could as the view? as [Technical that generally, your to given and indicate of you oncology finally business, your biology valuations and you loss deal acquisition away the candidate Alimta partnering also impacted setting patients? been I talk you XXX is the post have commitment

Company Representative

as feel corporate project augment. Josh you well presented development. moving would XXXX, to perspective to the doughnut for as Enrique? for give for and question or now forward And Great. the you on to business expectations free to Dave on then the as first if questions, like hole comment Enrique we'll the want Sue a on Alimta Andrew, perspective oncology you in thank go

Enrique Conterno

about in we So for hole diabetes our overall the being by $XXX during XXXX, at million, look the doughnut when it coverage driven of most portfolio is increased

Sue Mahony

on this data was X% very earlier, have growth the continue we're was Alimta U.S. as Yes, Keynote-XXX seen in and volume. quarter with mentioned clearly, that in overall to see growth brand in regard pleased to I We've that increase X% combination. price, the in Alimta, X% and we with also each

sale increase I think and I it's of in With XX% that note a and think we about I on our about line. stabilization don't first line, each second are seeing individual come to key said, and we give focus share in is as products, market first line an from overall is XX% brand. that

that turning waiting Alimta, as trials the and outcome the unexpected combination the Keytruda some carbo. we increase see to We for saw phase continue X of before data people

on-boarded people we talent. So we will cell lung that benefit again. and with Sloan areas bet case in with that we also we are one the including our bringing And new that forward. We're standard be Memorial team continuing line Duke from other We we setting, business about the going the based that bringing across is IL it's in Kettering that of see RNA placing space and in concerns deals you areas deal two into to will continue a more motioned really offshore which we vaccines. a as of future. that. recently, to regards be BD regard are external continuing be cancer care IL, first historically in all we to with the be see best very development, in and we’ve one told think with physicians We to previously seen and from the a will We interested have other pleased us other both bank in have we the and to the Alimta, doing non-small the will anticipate that in oncology

David Ricks

say just stage about and I sheet highly with balance number we've our expand and the portfolio would oncology's BD, to to use one target. we're committed assets clinical talk particular

through wouldn't So, that we're relative most of read signs activity lack the as our change any Jeff recently conviction. I

only those count to discipline us. sure each make can to we to sciences need and look understand, idea like as we valuations and us sense sure we'll need we externally and strategically appropriate. course, you active be matters Of we make on but But are be make at for

particular available need that to all to our at choices oncology. in pipeline in you look If

Phil Johnson

Lia, question we Okay, exposure you, Olumiant to the John that in then exposures. And Dave. asked for. go a data can next have but have XX,XXX And for thank to did we now when back please. years to that of providing you Boris patients' team had baricitinib. not Thank with post approval caller you add we

Operator

go Thank Securities. you. the ahead. be Guggenheim line It Butler of will Please with Tony

Tony Butler

today. may. to of similar related, questions one somewhat just data at the curious very AN respect is, Thanks products do if the and much. that have Two One come bag hand. market to range What you on is with But I some I'm we'll pipeline to galcanezumab can less in this gout the immuno And later back second, year. previous so asked a makes I having as a second out? question cluster, it without agent And assume is middle stand do then it the biology.

in. be have CDX maybe back interesting with more and through PDX? And I area antibody just way have engagers because area Could through go I'm end for seems reset much. you which to didn't a an company to base biospecifics. and very speak You to an had Thanks an curious that to you relationship with it's to assume it direct

Phil Johnson

Christi intend and you we you over biology place. will Sue to the thank succeed that galcanezumab for question cetera. to And for to questions, we et for Tony. market biospecifics on how the in go Okay, the immuno

Christi Shaw

for thanks Tony So, Sure, question. the

with where area for had this out haven't quickly option we few agents and coming an here think migraine the decades, I is an are and patient couple of together.

thing all, I these really good think activating the patients. have of couple first to So, really companies of a

first going piece have area, very of chance at the is to the are and consumer is who the history to our good a And think I consumer. is that. we better be driven So, direct there

we and to is free totally. one On the XX% XXX% migraine be only XX%, of day and specifically, patient will are at endpoint the the ability showing we have of measurements actually have XX% the XX%

the as the and results galca we've have continue see early results one we see and that fast is think other looked durable. through XX month the we The We as at. months is

of for coming worked obviously do up and type for the win differentiating huge this have do and and good in a then ever it'll patients is we if nothing data right, were galcanezumab. has we be migraine cluster You

be launch, our competitive well we there. So half differentiation for prepared to second we're and we have some think

Sue Mahony

one, and but moment, potentially mention two that I we've could bets. we'll yes, really in are. next Yes. at we Tony be I/O is two what we've taken portfolio And one of agents based at we've be taking others the to the want future. question, IO our way vaccines taken to want disruptive the thanks and think do, as RNA the looked by the what really generation for understand we the we that biospecifics,

should is and biospecifics that very collaborations have looking and other at you clinic as ongoing biospecifics of have the be soon. we different number those. the targets The into We're coming actually mentioned a excited by

that We've our in clinic best-in-class got two we've and some know about got think asset asset Another by too so much excited as got IDO we specifics. got that on that data not the see we're a by have again bets but we've IDO. that and RNA in We we based pretty vaccines you believe are got the taking could on an be what to TIM-X that the differentiated; is also we there. TIM-X we've and and now we're talked assets but before happens there's there, we've those one mentioned clinic that the

Operator

Divan That's you. the ahead. Credit go Thank of with line Suisse. Please Vamil

Vamil Divan

just question just second a we of Great, up discussion just on have that thanks use, there of used or think of talk given a be the coming safety be in out also discussed either. [Technical attractiveness use like for bit a phase-X for dermatitis generally might give this upon sort you your I be you would that see of opportunity taking were oral market product where earlier patients ahead baricitinib were are acceptance you expect would dermatitis. topics atopic and there an antibodies kind I some you a you the to Botox on my just may following question. yesterday's of question are think only little May following that And on CGRP concerns of products through on do if be up couple then again program have about risk/reward atopic that the those and just CGRPs, lower? used in how preventative curious Can you to going the Difficulty] could have on thoughts I products the the know

Phil Johnson

Great, the Vamil. question. you for Thank

both go being So term CGRP see where atopic potentially to you Christi question, for you used. we'll the as well as baric,

Christi Shaw

Sure.

benefit with Lupus. baricitinib so ratio disease know So risk studying have our at you its what data you each X phase if own look we're they

the four and the both two milligram. have We

derm, If milligram two you that at out did read atopic a phase work; the took bit longer. look two, little the data just we it in

it’s two there. the get you whether or will So know patients know better we four

in So XX four needs over arthritis and we its each countries. disease, believe be own available the is as and milligrams really have in for to US rheumatoid dosing strongly they the two it

on there's patients them there we should of be. and a X through side, to more CGRP have million million already that preventatives most patients to preventative are believe and on the On few then there's that and X we generics like cycle aren't expect the

will to head So we them as a as mean CGRP, patient. but I’m well triptan monthly example around we a there'll go be versus have do good your compete your before doesn't have that requirement injection every they; for to injections seem to I in expect Botox. XX a for for having if used XX expectation on they it a getting

they and have there advantage an same standpoint. have we think I So an the hurdles from access

to access that need and how sure usage the we come patients available it. we’re I believe make will payers is that that talking already So about to

Operator

line a ahead. that's of Mark go Please UBS. And Goodman with

Mark Goodman

safety you the used? presumably as I on Can about it mean continue will everything as the profiles to conversation to these you versus going see how oral things CGRP how orals Just well and used? just you be Lasmiditan. market, orals. to think are talk with makes if be Your the the CGRP that all

Second patterns can inventory that as Thanks. the respect some quarter on and quantify explain pharmacy well? to the with Taltz, Forteo. just you and is in was were there also the impact question you buying what issue Can specialty pattern Taltz

Phil Johnson

Okay.

part being revenues of wouldn't as talking relative Lasmiditan. you as CGRP then safety could if that of Taltz again second Christi, Lasmiditan the Dan pharmacy piece oral that So of of monoclonal that profiles antibody if buying about to the CGRPs we some we've proposal. get specialty a well for question mind used then the potentially patterns seen was could this the over see and in go how quarter’s effect you you if

Dan Skovronsky

Great, thanks.

on important safety very well profile. and trials really by phase-X preventative galcanezumab, could what to think have in we've be seen on tolerated safety. by to of critically patients be for time the patients long I for And our a safety think So very I that's a with we've respect migraine clean the encouraged a profile for been

think and which abortive, an the and to the orals When you on were important are going you the safety be could for differentiator and of to So for profile Christi a comment different for oral that's galcanezumab differentiation. commercial some evidence I the anti-CGRP of bit that probably CGRPs seen get class antibodies. we've

Christi Shaw

Sure.

that advantages for bring pain. building big the of a platform the we in one that's think we're I marketplace is that

So we coming. the treatment have Tanezumab then Lasmiditan and galcanezumab, and prevention have the we in

patients Lasmiditan same is if mechanism CGRPs. look agent. at responds the of different oral action than And the to not the everyone we With

similarly one So acute we an the believe for will to that they'll and or that respond all be used other. patients phase not

pharmacy, Forteo million question, basically quarter-to- Forteo, inventory was saw quarter. last on answered And impact position So this way. win question sorry on obviously I that saw in different then I year. inventory year. increased ourselves we But I'm in we're in and at goal was was Forteo positive our later the well would a wholesaler to what of patterns the the working buying We for And on that. actually on that the the a Taltz cam QX demand was but marketplace volume that. for That was last Taltz to think the be specialty package $XX submit then like

did that not a the in for QX Tim We new was the of with all loss overall competitive somewhat of impact de-stocking to small been has but Forteo. but it. have Some entries formally that really performance Lowe's,

David Ricks

going CGRP another the for patients. using just I refractory am about I guess Okay. was in question to add antibodies there

two of patients least who pivotal on other had failed our phase-X out modalities. to all at Just point studies that

tried that things. have So patients those has if or who other that's not have because are chronic I'm sure a commercial big episodic likely migrainers the many - had indication bearing migrainers

pool and patients reduction the despite in available failures least at and patients in XX% large today the month. on strong, think believe and of of incredibly competitors there. be we’re present I our extent program for is prevention that So the The is to headache I per data data will all have days

Operator

is that Please Morgan with Stanley. Dave go And ahead. Risinger

David Risinger

Yes, thanks very much.

So I questions. two have

an whether described was much. list the then article on that Reuters on clinicaltrials.gov There very trust is manufacturer bit external today second rebates in price First slide Scripts a on CGRPs. indicates in not just comment list provide a to with internal CGRPs. rewind, readout indicates and could the Could you asking event the that a you respect just list, a extract that how prices little lower PDMs for to manufacturer significant Express published up follow but to understand a XXXX, to better expected and not readout lower than trial. because that you just Trulicity the an this morning and Thank July completion wanted that that I of does

Phil Johnson

CGRPs. was thank article Dave. Well, you're the specific to referencing Great, you,

a Your policy question really of question. more

you taking to of for press Trulicity to Risinger the medical part question So media. rewind, release Dave Enrique timing Dave relative presentation to and the over internal then readout top-line mind you would if of first

David Ricks

Express Yes. Miller see I is value-based this interview at Thanks, really did I now glance morning. Dave. Steve to pricing. was Scripts with this that happy for

moods, bit think the I idea these based we're the actual of and in I think enter products of I the in in is case value-based Diabetes, willing think been performance little believe course, varies about for Of price migraine other this our and years I scheme that's performance kind of because key the that oncology to the list construct product autoimmune lower drugs. piece. we've we into even drugs for a discussions. prices on in drugs The point a other think many

it. the need difficult this happy with will on worked and view on we kind payers work would is to comment specifically I changing We'd we in PDMs? launched the to all with US. we to major trust think see products, their I Well, closely be it's happy value now ESI do to of the determination So the the am construct. supportive of them

Enrique Conterno

ADA the will top-line disclosure we early in rewind, year's at we meeting. of comes release results next with So and full the likely half it readout a QX, to do press the in expect the second internal when the be targeting

Phil Johnson

is event-driven number report database, all uncertainty validate figures And analysis ahead and to out. and the once does last be there trigger that of into get it date Dave, and go system with It event. run is the take have just for expectation data being Even months visits to our the and final occur listings last around and a then tables, the then city.gov that. cite that we you done. and to clean be the event would the that the clear Obviously,

go can we if the to caller next please. Lia, So

Operator

go of Very Sachs. Goldman Jami good. with of line It's line Rubin ahead. Please

Jami Rubin

specific FDA where don't drug I baricitinib market. milligrams the cite like put goes your in is a panel you May is recently against David going and though you And both to words approved you. examples unless correct? not there can even that want sounds you was a four know recommendation? jack Pacira and approved it this there in for be case to launch I mouth panel but Thank you're was Christi, went the that two the and but that another get the can non-opioid was against on it sure

that is FDA to comment would growth if against on panel on of decision your can and wondering FDA launch the for what affects confidence you if vote your to you the not objective? Thanks I'm Baricitinib would top-line you tablet. your that So much. it milligram just RA extent to X% four level And can't convince very the can

Phil Johnson

Great, Christi.

related to want if two comment maybe and XXXX. on four to the versus the go launch expectations ahead answer and You Josh to want cetera you and et question

Christi Shaw

Sure.

saw think in was unanimous, unanimity efficacy. before said promising I As I four there the that milligram is the we of thing terms

based to so And work voting and market highest we can specific on a we’re that's the our indication on the saw we the need. as was FDA path the where with continue our labeling unmet the to and in that you say thing

as who XX the that lives. other and their in United they their So in States do improve pain are suffering so countries much patients the have access improve to

that two serve to So the need highest the what milligrams is and is four unmet population. we both indication we best what the and will continue about can path them to talk for

wording you. methotrexate, vote one think then you thank the things was to I that let's see which indication the saw was the specific -- in outcome. after of was the And at So the very presented was

I overruling benefits said available look at for I in the make terms to as carve I milligram the AdCom four if So patients it AdCom risk can't or overruling of indication recall milligrams wouldn't most think as any lower X we different and and out well it be comment but patients. that a

Joshua Smiley

Thanks, Jami.

is I think confident through product we've which dependent growth the growth on our and minimum been prospects. growth compound not rate any a our in annual clear expectations single a five% we're where about XXXX, five% and is

we We're think we our and that X% the the still to potential at excited QX. in The growth of are about us on the new where We're Olumiant about good think we've launched. targets strength today launches XXXX. to we'll of in we’ve I confidence already XXXX. and that in of US look if give get pain the products that already other ahead new where on things I market you have prospects particularly the be a there talked outside

of associated by with think analyst the Olumiant looking I the just XXXX. models, dollars in US at sales

X% in models of your continue minimum our are think that I is to will we're new most growth -- small pretty products still the but to confident in that anyway, valid. drive strength we're and portfolio

Operator

with the line Steve It’s of ahead. Cowen. Scala Please Yes. go

Steve Scala

A you. couple questions. Thank

studied Elanco power? on Elanco; that poultry on secondly, comment and it hired for I cattle, think sick on you've no, commented talk you rewind already statistical announced population this still commented, size, design was some maybe so yesterday of CFO the done couple studies. And comment And its being a trends? fewer to competitors First on a concern can questions was how poultry. can you arrived Thank then swine rewind. you is on about the despite also trial you You. versus the and possibly generating you you now? why Can comment your There's endpoint about and population duration some less how on achieve position you at you its events created newly can

Phil Johnson

the thank question. you for Christi,

design comment the we can on here. more first rewind, So we'll portfolio if go the give of you yesterday didn't on around including Josh, remarks. swine horn parts you'll of in the Enrique? hiring and Enrique, prepared take CFO other announced then question details Elanco on Jeff was that that some the

Enrique Conterno

event-driven an Rewind Well, is trial.

this were is us it for of we basically and number basically difference So the product to that is trial powered statistical a will trial-one, we if a closer the meaningful. show certain hit have appropriately events of to show

We to in a trial of So confident if pretty I are know you do want population confident. we've Dan, I enrolled, trials. have lot questions this comments. outcomes the of have make the don't We whether we designing maybe time we the that cardiovascular see point it the way. a less trial. about I we other population that the we're in that lot comes do expertise any designed we of want got this to basically know is think at to when appropriate And sick.

Dan Skovronsky

longer under trials these of have area I the outcomes. that of duration have the And the correct. just more on one effect add to which time its curve time would cardiovascular follow-up us on here that's we'll drug of sort in patients, for gives No, terms work. the

So duration although benefits mandates to as longer right see increased the showing the a effect. trial, actually we lowering larger

Joshua Smiley

planned direction. continuing earnings I think in in be first is QX we'll our of and evaluation our strategic to call position a our strategic as Elanco our announce

that QX Jensen Our Elanco good announce our direction hiring us well he future experience. for any execute I call. to we earnings analysis, will that CFO position after as look And a for of brings and external adds Chris think to

Jeff Simmons

Yes, Steve.

later So continue I first in continues are and to Dairy probably bit the beef and level, a pretty to at be industry but on XXXX, an recovery stable little trade is swine again high perspective system grow. a eyes overall. industry as slower a expected stable think

overall about the So impact feel on no industry material we good economics, us. pretty

feed to Josh would to don't that. in additive comments trade. everyone's; especially more I as impact impact industry. we're have just It a I his watch don't or issue of about and relative be the on time, At economics anything on much US to could see it's going think think the like said no definitely continue we the us. this trade anything barriers that overall

If see that we've return look by led Elanco’s animal food business, in and so stated. second at to the heavily as poultry half by will We you swine, growth ruminants. less

Operator

with Next is Please Evercore. ahead. Umer of go the line Raffat

Umer Raffat

really you noticed dose processes have phase trial? as X.X high what at and dose diabetes my might questions. so curious, your a I much semaglutide loss I And thought such on three thought high would was investigating a that just for a that milligrams comparator weight but in well. Hi, I thanks in taking also a, have your expectations included

that's in quick So then animal up Is follow pressures been weighing and Posilac market the on health. a just you. trial? to curious wanted that about in Optaflexx to just a you how thought understand driver access And still livestocks? Thank

Phil Johnson

question. Umer. Thank the for you

dynamics Optaflexx. you recently to Jeff the some using higher study animal for on initiated and health with for then and Posilac Enrique doses back Trulicity some So

Enrique Conterno

and studying can perspective appropriately milligrams. a X.X well this be have can basically So difference vis-à-vis AXC. when we we doses design a X that regulatory show both dula if X.X those actually from a comes trial are way And to believe it We titrated. in it tolerated hemoglobin

get weight in see order benefit approval. the to to this also its are from to end AXC We important we when but loss, that expecting comes point difference risk perspective it okay made product

Jeff Simmons

Yes.

patterns all I first as as business, issues exiting area some our that saw I close net that do came access as slides to from although On actions food business, in Posilac. we on area. our that one proactive we we and to in X% the business declining remain and relative our being in the some for headwinds ractopamine, QX note we international here the of exit use. growth definitely buying backup in but and are this animal taken and mentioned focused would again be U.S. and Posilac stable competition grew continuing driven the to our will hold market of would see with exiting highlight on and that’s we’re you again with continue The note continue food to XX% animal. XXXX. of Posilac then an Josh strategic o-US assessing continues have by decision though And are majority So

Operator

go of Gerberry with its go Bank ahead. of We line America. to Jason Please

Jason Gerberry

Hi, and good question. morning, my for thanks taking

setting. Pfizer near label CDKX/X question that expansion, First in increasingly of is from more penetrated agents the more on x-US maybe cancer Verzenio. shifting that is well breast the at medium Feedback metastatic use U.S. at for is the and market is getting growth to least with in early occurs until expansion term least to the

agree new as you curious, versus in Thanks. that early think kind date, the if in just the just we Verzenio, curious of some how just and advantages of this growth competitors. the it important into start advantage upon so So PDUFA patients going be real category? is with your market assessment of advanced getting mover contingent share June important on U.S. then kind be would early players how faces you One of uncertainty to second And the CGRP think question more at opportunity the in in category? the mover kind front, you three look

Phil Johnson

question. for thank the Jason, you

So question first you for to the on Sue, and question for Verzenio CGRP over you to Christi we mover then go advantage.

Sue Mahony

see launched activity we brand end pleased we when think Verzenio. larger it actually that. mentioned on with each the rheumatoid with the And we’ve the single to, uptick about the feel to huge of the with with the now Yes. we good on we’re we very and growth the combination of with Xinhibitors, and opportunity indication first, [Indescernible] XX% for taking just of again both XX% got an in launch the question back February regards launched agent see about and with of CDKX share. there. third just market Thanks the well, at as the third which regards plenty brands, With treated two market I should so growth we also we’re is literally Josh the for market to actual And XX% and we patients are of we share regards and market, with opportunity

data the do differentiated the that even things is a obviously the with that ensure the and and we’re got we efficacy with month beneficial we see we’ve continue robust can really present as got is And PFS and seen the XX.X physicians that see clinical could that an similar single-agent is overall we of concerning where we the rheumatoid that characteristics to well we dosing. see which to molecule well, able activity as we population. patient the of also benefit patients Verzenio, that see with as One patients were to robust in understand with those on most pace trying to data

both So, continues Europe and and U.S. within is to be our this opportunity those both and believe to year of submitted we growth that is get can o-US compete in for Japan the the that market have overall course later in we the to geographies. approval and CDK market still hope there in we the to

Christi Shaw

though on a then big mover in talking get three the in different CGRP not deal, to access, a get important look how months on it I depends is, at your you’re So approved, really about by big general label four is differentiation its mean not early classes, difference. time strategy and you pieces, the

and have looking bigger for are later share. a to detriment If XX months in agents the and that delay at you you XX you is two are marketplace

Operator

with ahead. Next BMO Alex Please is of Capital line Markets. Arfaei go

Prakhar

you for I with base combination additional you. yet one Good Alex morning. Could a its question. achieved [Prakhar] to provide This to was the on your is antibody. efficiency. the advance had milestone this Arfaei. Thank And behind And just bit what the the drive thoughts own? decision in anti-PG discontinue

Phil Johnson

to question. Dan the Thank like for comment? if you Great. you

Dan Skovronsky

Yes, thanks for question. that

brain higher on So compound familiar A of That combination look based initially at given inhibitor. monotherapy a was more that penetration, with, favorable X internal for its behind our the this data. favorable, phase was that safety profile. a course theory the as terminated we you're our have correct you're well as which data readouts base external of would this

we was X sought stopping what in and demonstrate also futility to Phase it. was However, efficacy towards us that drove

in and of that in continuing for to on monotherapy. X to course continues base Now the monotherapy rationale status and be phase

we combination. commented the you continue with As

plot a the brain need clearly I inhibited that PG production. Abeta growing with have Here clear also to and antibody centered we out of think we understanding that's the get a to

the end both from hitting So is rationale combo. there for

Operator

Yes. Mirus Wells line go ahead. with It's Please David the Fargo. of

David Mirus

morning, couple a questions. of Good

developed think products to average U.S. top-XX be? What on that just going you relative thanks? that that mentioned rebates. you you assume it net think how Can net the say impact assumes in pricing less First pass large if separately, the or through without just PVMs. or differential potential to the your were some can would it make work willingly as people do will you that does if administration's Is PVMs would much of the money XX And you with, because When pricing mechanistically say an pricing Europe. or moves. are us discounts address will of is then as versus it lower, all think back in provide or the you having of

Phil Johnson

Ricks David. Dave take Thank have you both. for the -- can questions. we'll you

David Ricks

Sure.

the rebate through. on just So

been well. with fixed And As it as we his relates you point system device ethically the out. know done program. free there somehow to well. subsidized modeling has has that. speeches the Part pharma. as it as think Then wrong podium lately a Scott ourselves isn't saying something And as We've But is I well CMS D where as I

going there census think PVM I that to even about among apparently. is

in So $X that's some program that their We're necessary. particular when probably In Part and per traffic member or would passing XXX%. is the in per portion not they're all premiums for the share idea to beyond donut $X rebates D Part talking modestly hole a program. of D will that side. month across through exchange consumers be the grow portion But of exposed to some

In pass that's some basic course just model, think a rebates higher maybe So which through. And is D slightly through. for much plan idea. off assumptions I providers of how the be premiums that exchange Part about in math will requires pass that trade- make

and but of well more little than I company payers the positive bit sale. out meaningful the and correction ultimate at In position pocket, a it the plan, needs savings are commercial manufacturers the raise think objective as be to as man ultimate which point payers our to which half. well middle other of is different, that a will Our here, be XXX Fortune companies. here are to think Both [Indescernible] prices, to of fewer decider is the reduce dynamics like I

market of think for And medications BA across major And is and think the use part instance you US if be PVMs think as pass then through happen. the D, European government And rebate in big to have to surprised competition compare a pricing question in was I that makers pricing already matter the China, U.S. a they their I find will used that I at I like And it. markets implementing plans makers what PVMs. labor Germany. decide are that And and for and that's not would they pricing. that markets. if would blend not really like the commonly look that government the second are choice employees made those the as Japan the to from Lilly's think Medicaid we most different policy DoD, of

IT I include lot delay long fair periods pricing approval models manufacturing three regulatory down also the analysis think comparisons. or market. the they phase single change competition the expect layers you effective relatively to apples-to-apples to market off through do market you as there have less Germany And payer this are where Japan, of which of But rapid you next China market erode et I pharma group is think If basket, It's I which of share use particularly that price but with important That beating we time mentioned biggest more regulatory a a of introduction approval. cetera. the have continue and reform. should closes

will today. I government of light shed US think that kind the on a deals the gets it favorable

Operator

go ahead. line Please of Scala Steve is Cowen. with that And the

Steve Scala

that. Medicaid on It couple seen utilization Thank you've seen questions. but mentioned was you. that lower not am you've A clear of why I

pancreatic can maybe amplify. late early abemaciclib then XXXX stopped, Phase or to study XXXX. was to trial readout you X that not the was secondly, So And the

at you. tumor So look Thank your was for stopped interim types? interest in futility pancreatic it this instance failure and does for new decrease other in

Phil Johnson

you you pancreatic expected Thank would than Sue the lower for question. over on to to first And question on And like the on Enrique, cancer then you utilization. trial. the Medicaid if the comment

Enrique Conterno

we it those So receive significantly more actually some before the and Medicaid, commercial significantly we more -- plans, those the to of claims. rebates in for plans. case make lack discounts tends of receive another approvals claims our In than clear

expected. basically lower estimate our been than claim received have have basically seen had we that and the we have we So what have that is we

looking reason accruals of entire this mean in we Medicare So that's look a we us we look what could be number -- now thinking for for from for as have year the year. this benefit a well does and are time there rest okay past and reasons the when of but QX what for that coming into at point are at the we basically as the we

Sue Mahony

Yes. we study. went the and Steve, stopped the study to actually the endpoint pancreatic now final was

think tumor important you and looking we does clearly gemo with This at is the we pathway CDK tough Pancreatic the to probably targeting reduce is are high other know way bar. the timeline believe is do combination any So a is forward as pretty go. in looking confidence And with just late follow you with and also type as at future patients. our up moving we not mean I are in abemaciclib. be have at looking may cg.gov indications by might it

indications breast We cancer. starting year, breast have a should looking you number lifecycle planning and we trials of that as in are see this later some well course as of non our

Phil Johnson

Great. Thank you.

And I XX think questions. no there queue. sounds like in of it types through the more folks we've are gotten different

over to So I'll close our turn session. provide Ricks it to that can David And Lia the after you instructions. replay

David Ricks

today's interest Eli participation your And appreciate in We Company. of your Phil. in earnings all Lilly Thanks, and call.

Our on strong And growth as guidance our and line first quarter top results line continued we've progress bottom prospects. result. a raised represent

We not a investment. great significant we That many lifecycle everyone. opportunities. Hopefully to top broad call. on with questions years the to your of for on with And Relations driving addressed products our team continues executing a we Have strong compelling day new Please with if follow line expansion margin Lilly Investor today's pipeline, be a are call. our the have come. growth. up have concludes portfolio Together opportunities

Operator

is after available through gentlemen, midnight. AM replay XX, XX:XX Eastern XXXXat digitized for Time one year this and for Ladies May today conference

conference those access time and Teleconference. you replay are XXX-XXX-XXXX, today. And that calling your numbers for XXXXXX. service access code the using for and may conclude the for You and X-XXX-XXX-XXXX at does any by X-XXX-XXX-XXXX Thank Again your participants XXX-XXX-XXXX. XXXXXX. dial participation code may enter access AT&T International again with

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Eli Lilly and (LLY) 24 Apr 182018 Q1 Earnings call transcript