LLY - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Lilly Q2 2020 Earnings Call. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder, today’s call is being recorded. I will now turn the call over to your host, VP of Investor Relations, Kevin Hern. Please go ahead, sir.

Kevin Hern

you. Thank thank XXXX us earnings and and Eli for QX Company’s call. you morning for joining Lilly Good I’m Kevin Hern, Vice President of Investor Relations.

today’s Smiley, of Dr. of Lilly Joining and Lilly of Lilly Officer; Diabetes. on call and Jonsson, Ricks, President Dave me President Patrik Lilly’s Anne CEO; White, Josh Skovronsky, Mike Chief Dan Officer; Bio-Medicines; Oncology; Financial Chief Scientific are Chairman Mason, President

the by Sara Smith Investor of Relations joined Czapar team. also We’re Mike and

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

with Our of due those factors, information and listed and the actual as sufficient to Commission. a the including and the factors filed could differ decisions. our XX-Q products investment three, Exchange results and materially of intended outlined pandemic, number we promotional in extent is the not COVID-XX other is slide is about of to X-Ks and for the benefit The our pipeline Securities be as community. duration latest well not any the of prescribing on provide and XX-K, effects forms for It

our present transition as the measures, financial prepared was offer which X, full from via January the XXXX. I’ll XXXX that our remind to share commentary non-GAAP will exclude we As contribution during the exchange Elanco financial earnings you per focus and on remarks, disposition though complete on

to over comments. opening some the for turn Dave I’ll call Now,

Dave Ricks

call. last develop COVID-XX Kevin. has in and Thanks our to are the world to earnings across industry vaccines treatments progressing Science changed advance A lot understanding efforts has continued since and our rapidly. of the

uncertainty Lilly to to deaths are begun to company public Despite demonstrate have my resilience I've proud mission COVID-XX of remains This more my Economic the serve. climbing these economic making health progress currently we as been and for any and of during CEO our and places. resourcefulness tenure of regions medicines unemployment many the patients cases some countries While and persists in other past other combating in continues was social, crises. quarter XX,XXX countries. unlike millions challenges, reopen, as teammates. high and and never

As underlying to see healthcare and ensure our advance year-to-date to occurred. or down spread afford dwindling that the of or proud of efforts ongoing expected, patients when the economies during our quarter, prevent develop with to results our treatments access buying shut the critical by patients into efforts were find advance experience to COVID-XX, ways this business of access unable the strong Overall headwinds COVID-XX. to To Lilly’s doctors the trends. are to periods we their unwinding to research, indicative and for have medicines. ensure I'm creative QX and

Throughout personnel, and We weeks the continue disruptions in enrollment been facilities to recent paused. ensure had Resuming there globe of majority supply no with in to manufacturing the around activity promotional the continue physicians. and platforms customer QX virtual a on and increase touch use we’ve built activities. augment in-person engagement points leveraged to we we the medical reach country-by-country to tools in we to staff it's of on our safe medicine, will in and a essential activities when a basis clinical resumed new education we these our in are as contacts promotional U.S., where in-person trials state-by-state saw steady

in as well in-person physicians some in expect time and the continue from as U.S. internationally. remote We of interactions for increased hybrid to interest engagement see virtual of a volume model

the placebo with diagnostic Retevmo, were in the approved in quarter, thyroid adjuvant progress strategy, readouts therapy this made executing axSpA, U.S., cancer, diabetes. cancers, approved patients U.S. quarter positive non-small only now new We with Cyramza patients and EGFR with X the in in head-to-head cell in driven heart lung CDKX/X ever this Phase Cosentyx two and to first with collaboration and and including versus also the breast the and RET launching good our include and population. R&D Verzenio for this with cancer medicines fraction, new disease just Lyumjeva, Jardiance Tauvid, and X and today and diabetes. Alzheimer's to non-radiographic Type with Boehringer Taltz X patients Mirikizumab and mutated with and for lung erlotinib failure in first succeed who injection compared our insulin mealtime acting combination reduced without psoriasis also both fast in a both Several Type inhibitor for for patients

monotherapy neutralizing We our also therapies. pace the provide during in on and Notably, initiation clinical project detail both of with combination. to as across as capable and Dan manufacturing potential COVID-XX more organizations will continue antibodies, developing make company. the you this multiple trials progress are we executing evidence at R&D is development innovative unprecedented we're update. what which an The of our

had visits visits negatively earlier, Reduce however, our across recover mentioned underlying return we into new a new prescriptions prescriptions activity pre-COVID-XX through and on roughly I impact a QX levels patient translated IQVIA as confident As pre-COVID-XX following patient in A therapeutic in Telehealth most some to to we the COVID-XX; trends by of XX% of were and impacted number health observed June, classes. in late fewer April visit our physicians therapeutic sharp although dropping of back visits to variation the COVID-XX early A to with the and in combination the fundamentals care of results impact peak business to meaningful the showed slowly were in of areas. beginning in U.S. May data in-person levels. economic business. remain decline slow XX% activity and

physicians economic hospital medicines for to the can is ways and remain will activity continue need. find access patients, uncertain, ensure to we patients that optimistic systems they outlook the While

a X% of prescription we visits of to QX, largely inventory to on declined estimated expected negatively QX in Revenue Turning experienced otherwise COVID-XX the was solid impacted $XXX by reversal stocking that the and QX. both of we to as results, total drag all related our reduced patient dynamics trends. compared were XXXX and revenue million

prescriptions about the been account impact $XXX existing relative maintained, are We patient Taking we deliver QX across XXXX. for into prescriptions robust most we declined baselines. and scale them estimate track While to our productivity position performance established current on and products, to The new to million pre-COVID-XX create have business in continue were to trends, financial value. this ability worldwide of us strength our goals deliver agenda new our shareholder the to to to portfolio. well

see of the to Moving our earnings five, since you’ll call. list key events last full slide

affordable that patients such and the real results, Before, costs all of the last to out-of-pocket within reform savings as the medicines and accessible believe Friday. Josh financial announced patients the share offer opportunities We of making and just rebate to a XXXB concepts for patient discusses population comments our orders executive lower more quickly. about were the eligible few sharing goal

is This However, have costs, price patient policy of no almost supply will bad most for the together as our serious for innovation. I've the but out-of-pocket policy. of patients for negative chain of concept have benefit with noted indexing a international assuredly consequences safety before, the to future we’ll reimportation and

and at actions So at to will racing sweeping discover industry treatments that's vaccines defeat best to government the introduce same and now the COVID-XX. time cripple is distract to wrong worse, that

detail QX John in for to turn an Now, XXXX. over results our review guidance the more to call provide our update and I’ll financial on

Josh Smiley

good and everyone. morning Dave Thanks

financial was the half and in Moving performance of XQ and XXXX lines of six by many statement. COVID-XX seven, non-GAAP during first the to our impacted income slide across

quarter As revenue in COVID-XX this QX, negatively ways. Dave It mentioned, was X% XXXX. declined two compared to by impacted

was stock in COVID of related levels. historically all of channel $XXX and consumed the inventory in normal supply QX medicine closing million cabinets the returned largely in QX First; excess as reversed to and

to of will down this which negative brands, be with of market of we impact resulted balance to levels to lower approximately on in QX the year, area. had over million expect well. a estimate step of in estimate Second, prescriptions therapeutic reduced a the patient pace across visits return due many $XXX pre-COVID recovery as impact which COVID-XX We our varying new revenue the size, by temporary we

versus revenue X% percent of which growth more seen primarily first price, driven constant basis Given performance. of the was is as quarters, performance reflection more our in currency a moment. of of underlying Gross margin a sales between of XXXX, and in a QX accurate decline points in detail stocking in the impact XX.X%, half negative XXX describe I'll by a QX, destocking

a P&L, marketing as In the XXXX. selling, to compared have quarter expenses general down X% and decreased travel trials and declined and expenses clinical only tactics. declined partially Moving reduced were X% expenses operating this development of pause XXXX. investment as second virtual the administrative QX, in expenses QX, XXXX, in compared X% offset half income and by to shifted total, meeting Research to activity

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investments of private Asian driven the income was companies, in previously other as that as increase value U.S. biopharma in public companies by quarter’s This went well here in primarily the

these private science across and of emerging investments strategy and our and to public modalities. a investments external access potential range as companies of allow us new innovation have medicines part nurture We novel and a biopharma

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earlier, of mentioned impact to $XXX patient approximately saw negative and million at the contributed As during we COVID-XX that wholesaler destocking level quarter. the due

notably most approximately revenue U.S. to growth QX on Humalog, X% we this was prescriptions COVID-XX, by $XXX for Medicaid addition, drag impacted rebates in and million. and estimates reduced and as Pricing portfolio discounts, predominately unfavorable growth improved favorable Then the adjustments higher function revenue by the which impacted adjustments to extent due Emgality quarter, In prior impacting changes new negatively was net an by period. segment, program to which rebate access, access primarily offset a in Taltz driven estimate and copay by and maintain versus for last lower strong current to our partially reduced was price the increased year. commercial commercial lesser utilization of by across period a

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price single the of versus low forward, digit of we second and for half is trends first QX effects trend this focusing the digit decline COVID-XX current consistent with our net the that the and with decline, an XXXX low underlying and underlying pricing adjustment the adjustments the single with half business impact going QX, one-time digit impact year, mid-single in modest decline of Excluding saw combined of year. of the XXXX our of on onetime in in expectation Humalog price

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trends. We normalized weeks are improving demand recent more the by and trends encouraged in shipping

we XXXX the to and our going U.S. portfolio As this across in Part ability Contracting conclude Medicare commercial and forward. D confident access our maintain strong negotiations, remain we

growth posted in constant XXXX. estimate was constant prescription. in very new effective due COVID-XX declined to more in volume of and to lower and Verzenio price was volume Trulicity, was underlying declined X% European quarters, X% of during each. as from half trends the growth government as scale. the by revenue Forteo, revenue fluctuation less mandated X% are destocking Moving from by and XX% by In and and April COVID-XX Strattera currency on volume Strong Cialis, as Olumiant, million Despite volume Europe, XXXX Europe related related by new reduced million to across due first by volume declined approximately strong price currency than We decreases than products our continue roughly $XX Japan revenue growth offset X% Humalog. $XX QX, declines offset Taltz

and China pandemic's reduced were largely impact in inclusion the moderate. currency, in which growth, In the a X% million. these partially approximately for government saw The COVID-XX, estimated of QX began offset of Forteo by in grew of Outside affected competition solid we in addition, by increased rebound the to important Verzenio, price. Trulicity, $XX sponsored negatively person we both cancer of Volume growth, to substantially and medications. price Cyramza generic growth the new new China, volume were prescriptions programs, impacted as interaction Tyvyt revenue the the volume key by due Alimta impact and XX% offset patients and in initiation In contributors and portal customer access constant to increased Strattera. by oncology patient by Olumiant to revenue driven for

decreased from $XX new in Trulicity, drivers. which currency, reduced Strong more Our good Cialis Verzenio volume the seeing our rest increased newest Trulicity, the Taltz performance and by by again Asia. are growth. in related was prescription, Alimta growth X% driven world constant Jardiance, of offset and legacy of lunches, uptake Taltz increased in approximately by impacted Revenue by negatively million, Humalog, the offset by are was partially COVID key Revenue exhibiting sale from solid the in product than volume. Cymbalta was

Cialis, from products first growth Ingelheim a offset our reduced drive the alliance as products; by new total growth. lower these of percentage of nine, XX that points continue delivered of products These to impressive $X slide volume well revenue. half Slide post-LOE quarter. growth, of to XX our this [inaudible] volume the trend a volume our key In our pleased products key over on brands environment. our restructuring of key with of products. and quarter highlights growth the mix announced was XXXX, volume utilization volume of a despite revenue making year. last growth royalty shown worldwide As up billion generated strong delivered medicines with we Forteo partially competition of year-to-date key Boehringer The in as growth that this We exit XX% nearly challenging contributions XX% and

products prescriptions on the a COVID-XX impacted to both leader COVID-XX from impact in underlying of we're from is put prescription. new our product pandemic In movement While remains the in with total market of patient these key differently, and market XX% therapeutic business June diabetes, the and related over market recover robust, Trulicity July. robust U.S. and within has are backdrop be and trends areas The volume our inventory starts the borders growth new-to-brand quarter. in GLP-X share while QX the XX% in growth COVID-XX strong. specific is negative impacts transient across were We seeing drag on

levels is July direction one QX While class QX, point fits for right the now but XX% GLP-X robust we're XX. negative trends trending ending XX% some, in the have to were by around pre-COVID-XX the grew week still during slowed activity at and than to at compared prescriptions class in last Total the less XX% year. new-to-brand for prescription and

the we and doses for regulatory leader, well growth, higher class Trulicity. later the look Trulicity positioned As year future action is to this forward on of

on share in duration with class of important patients similar QX, from for show The to and in catalyst prescriptions another June for growth large the patients each positive Current than total Jardiance. of the the levels trial failure excited class Jardiance share with percentage the as maintained reductions pre-COVID-XX to EMPEROR-Reduced readout market in the magnitude patients XX% of addressable expect SGLTX the impact, saw about XXXX. in U.S. is before a continues probably class, trial pre-COVID-XX prescriptions and forward GLP-X U.S. Verzenio realize the in adding future new-to-brand of We to recently while SGLTX XX class the growing to market market up faster And versus XX% new prescriptions, class as estimate additional setting new to XX%. metastatic prescription. diabetes doses allow of new be potential over year. million the a the source than Jardiance leadership as and to be where over growing to points positive launch EMPEROR-Preserved XX% $X trends to additional look potential levels. benefits, oncology, are weekly in an heart XX% in of less Trulicity. therapy some announced the prescriptions, and below extending growth We're option continues the July. for total results by last new-to-brand We U.S., in continued of increase in with trail In the Jardiance market recovering trends growth

While to year for XX% later these biggest pre-COVID driver CDKX/X year. new-to-brand another at is to at of the in than our with meeting X the compelling anticipate strong reimbursement in presenting prescription trail momentum pre-COVID-XX week product in Tyvyt, this January of sales immuno-oncology posted a Innovent and the medical was drug list performance collaboration of the and added XXXX. half Tyvyt this QX. quarter growth in national in data of below and volume data Verzenio We Verzenio fared strong second China positive we the levels China's the quarter, package. point result the were monarchE momentum the the forward XX% look to of as more above recent class better average. negative XX% in adds new-to-brand existing most had prescriptions was

be of growth to important driver Tyvyt expect continue China. to an in We

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the in pre-COVID levels. QX still leadership new-to-brand However, prescriptions compared Taltz are compete new-to-brand although XX% QX for recent head-to-head XX% field to non-radiographic approval market compelling and of grew axSpA in QX to a share XX% of continues Dermatology are that and also We XXXX. new-to-brand In market from prescriptions we've rheumatology versus below a growth will total Total encouraging, our a growing for Taltz due prolonged smaller base. in seen trials prescriptions trends remain and decline confident COVID-XX. in competitive migraine more deliver package to immunology. of data in

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growth by regarding acquiring and not assets expect to to enhance COVID do and best-in-class our or continue We long uncertainty first to market our efforts. impacts pipeline travel anticipate term affect

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Dan Skovronsky

X last of Trulicity All we’ve all all I’ll most our as important still three from represent readout lifecycle new our and the important these about briefly positive, had Since meaningful help each, for medicines; molecule should Verzenio, drive Phase call advances speak readouts Josh. Thanks continued clinically growth well major and Jardiance. for development. three brands. were a under patients for mirikizumab, as

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initial we While clinic that toxicity excited precluded program, we were our observed KRAS in the further unexpected development. about

toxicity working we exploring are a are to for program. the We mechanistic basis backup the understand and

provided occurred key XX, on update during Moving we XXXX the slide that to quarter. events our an

In in the addition mentioned the pipe U.S. Alimta [ph] we previously for dermatitis. to submitted approvals, and initiations atopic progress, in

this chronic heart present success the were Jardiance forward the in we August for diabetic first outs the and X Dave disease, trial failure the of positive data and We As EMPERIAL-Reduced Jardiance with a read additional trial heart data mention study including the at in out about year. compelling were ejection regulators XXXX with mirikizumab positive for CV announced to We see earlier, in EMPA-KIDNEY heart in EMPERIAL-Preserved failure on the in of patients later kidney failure to look Society Jardiance, Cardiology preserved psoriasis. submit fraction, European based failure Beginning heart outcome read the XXXX. likelihood we seen and will to data and readouts, OUTCOME also in pleased to phase in trial. EMPA-REG in optimistic

trial psoriasis disease conviction passing is that secondary delivers option success since a and These passing pleased for had meaningful number to We Taltz further mirikizumab demonstrate positive has standard data superiority biggest excellent for also where psoriasis. data of this Taltz an It's remains these for Despite the to are We fast. psoriasis, growing and weeks a look in Indeed, in agents. see opportunity. of see mirikizumab all be suggest that people in to in robust noticed head-to-head the from forward endpoints. mirikizumab readout XXX. trial, comparing patients to versus with at a percentage we a positive such submitting we we’re head-to-head now skin importantly, treatment on our gold about indication XX and see trials XX with also consensual a X on the a both primary including and clear psoriasis, from IBD, competition particularly data such key encouraging mirikizumab living new mirikizumab in phase

initiating the and X now mirikizumab XXXX. staging the in for XXXX. prepare back updated we've topline submit work pleased pause we've trial production Given on Crohn’s and disease. of announced for majority of plan the We in I'm in we second psoriasis. starts disease Accordingly, for colitis going colitis of to for data priority psoriasis and also of the spring provided the many been clinical and trial our of new XXXX in investments in we results ulcerative and in to We phase report relative re-opened submission the to in that programs enrollment of enrollment are Since timeline the Crohn's an the ulcerative we’ve vast expect and indications, half trials. new again March,

to drug have on from also virtual. how partner of to the have be back way adapt These patients. are but chances we we capabilities some come Dave, we made it’s going you to clinical has continue with changes many sites and to going bringing and improvements new to we’ll the two is a necessity, we're in development, times to that number clinical As forward. but something the conducted closing environment committed completed we demonstrated run forward, are challenging to for trial for These new remarks. clinical allow trials research Lilly creativity medicines

Dave Ricks

Thanks Dan.

that injustice eliminate a towards think the role to and racial major Lilly employers against resources we devastating a in in African-Americans out to the committed company's long. We’re our natural inequities systemic inclusion, pursue and have work fight speak mobilizing leader diversity to on minorities our experienced as solutions other purpose, using corporate part play of I platform note separate too and is and and our a all realizing far is up, to diseases history speak bigger have treatments are racism of to a our for

announced a are forms hours also five community lasting We to commitment create to achieve injustice, stepping up to and organizations other pledge trauma our people and plan years. and we Indiana positive next businesses action, $XX combating racial and employee in acknowledge toward volunteerism funding of primarily injustice of together inequality with here XX,XXX million over its change. in we be goals. and to underscore our To and groups the bring many partner volunteer will the directed to racial understand The

longer to easy The us. While so we specifically corporate by and its nothing time a no there’s community any busy in for time change drive now the behind meaningful accept quarter. for the ahead, can forms is fact of lasting in road about the now, systemic platitudes bias is actions,

with the me progress in closing year. Let our of the some half first on conclude comments

in X% year. XXXX headwinds experienced patient business we revenue reduced are With changes highlighted and this currency. volume our worldwide on constant growth this quarter new based that delivered we of earlier that half first of strong inventory the expected, we starts mind, As in in driven pleased in

second We the of are of trends about half optimistic cautiously accelerate both and healthcare expect and recovery this prescription the to both year. during activity

ensure and to to we provide medicines ways support We continue systems to have find care. hospital innovative that access they their patients our as physicians and can

and in extensions we over to medicines of and to Dan are till and our margin this global COVID-XX. used data the number The continues spread pharmaceutical manage of the made quarter. work the infection. half anticipate working medicines the vaccines three way top phase broader points we improved clinical just the important XXX exciting and spread hard other Lilly new force had to pipeline a prevent U.S. and to and will be a this clinical first that line all from on progress programs. readouts be for develop milestones We X the disruptive line live. continue pandemic can of basis disruption to saw and We operating approvals Our COVID-XX We new achieved five highlighted. treat of XXXX industry NMEs

the and exist, face. proud the we and efforts health we do the I'm This in currently of to remarks. challenges to people and long our incredibly outlook for economic to challenge term remain term global crises our Lilly crisis, the social confident near company our continue and fundamentals. concludes rise prepared Lilly strength of combat While will our

turn I’ll who’ll to over Kevin the moderate Now, the Q&A call session.

Kevin Hern

callers questions the that possible, from ready ask and first so Dave. Kevin, session you then to provide we're for you Q&A the if questions caller. you, like limit Thank instructions for can please per many take We’d to caller. your as the two we

Operator

please Thank first line sir, question go Guggenheim. you. will now One now moment will And [Operator to the Instructions] and your sir. Fernandez, open. be that We Seamus from is

Seamus Fernandez

Yeah, can you hear me?

Kevin Hern

Yes, yes.

Seamus Fernandez

Okay, great, thanks.

So questions. of couple just a quick

I that of the just but the a have choice a little a to antibody. Dan just that. also technology first unique, around Dan. scientific pursuing for of help you more get understand discussion wanted AbCellera single know CoV-X antibody bit could is know around more and know little You your us about wanted timing your you a a to data the little of bit of bit discussion

understand in of help we how of that I is half that expecting dynamics so dynamic the kind second ability paramount, and And the the to just the get acceleration just full us how half. single driving of as you in wanted choice you're hoping for that read was understanding expense of to just about line. is the versus better is a Josh the think helpful secondly, revenue that I manage think know the that driven margins a there, Thanks. manufacturing hoped about we you shape then margin the directional going choice but by of you I as efficacy know the trajectory meaningful and up the an obviously think we antibody. to choice you've second investors as be How could of the about talked year, would just study you to know know you out. much

Kevin Hern

Seamus. Dan then Thanks and Josh.

Dan Skovronsky

scientific phase the know enroll available. getting I of respect what and public key indicator for Seamus Great! to data that We're that communities the be viral quickly the is questions have the disclosures those to With COVID-XX timing as how to of again, on we for depends important out as course and from to just timing, with patient trials to data starting the enroll efficacy Maybe potential data Thanks it's just and focused committed can these how antibodies. think QX, about a in commented and show. approach, on we information depends best this you the phase probably XXX X to the is trial but patients. I best that disclose load, this this going that first on of expect X trial,

specifically antibody more for there antibiotics and or around single a you two question been of have efficacy. have or was second Your look proposed, even to cocktails rational versus around three the

A think preclinical for and virus for we others combination I that of And find single groups. generally a just sometimes antibody. the looked example. resistance the as variety versus as neutralization combinations of monotherapy people disease the The have reason human antibody try that worried of infection combinations don't in So over therapy efficacy looking models cells and is can combinations offer that virus well at at you’ll what time they're of antibodies, neutralize of because could emerge.

we’ll likely here. efficacy somewhat any So for a is I are be there's trials. some less don't whether that emergence or There monotherapy make clinical an not booster, resistance. efficacy denumeration expect to or combo What looking factors that having instead of for see in

and commented situation if much manufacture resistance may antibody, is the key resistance. a as a some The of the can advantages watching you three be studies decrease combo very seen. three so monotherapy think you. manufacturing that that forward carefully of done combination not and high the like objective have we'll a obvious Thank are antibodies, seen of We've I will its if them. as backup and I XXX But all. capacity of you are you where at we're extremely studies as just much and very, one patients tradeoff a that indicate on therapy we ability times those in It’s two emerge might have this, effectively and move maximizing as starting In simply antibodies. here. as that's twice they resistance quickly think the to potency neutralize is heading virus risk primary we've

Kevin Hern

Josh? Dan. Thank

Josh Smiley

Seamus. Thanks

our progression think half you and second XX%. on a half first our at operating reminder, the year, little income percentage a over about and the in grew year just look the we of know in for if was the So a guidance the currency constant sales bit margin basis X%

that the going of obviously straightforward. for in year, When close it's range you look we or picking really think we’re to looking at wherever of get X% I to second pretty to growth the XXXX, XX% the expansion target we see want half know the to we’re we margin half X% at sales pick, have, have So to the but something midpoints you second the year. or in

in we function a half bit from while We and acceleration much more pick-up half of a in margin of it’s think just sort are. geographic points impact. gross basis, of in of stretch we an on where expect a a basis not little sales absolute that to So normalized probably a that's

the outside year more U.S. in As than the you the of the U.S. know impact half we in an first saw of

couple I piece to you $XXX the up normalize increased in half one-time either bit half benefit in the there. second cost pick from combination things little not know for those the picking will or a wherever and of pricing absolute guidance bit expect the But the We year mean a and OpEx so so year. you R&D big want down, additional range, in sort range of see anticipating the in impact getting million side. to any and dollars provide on moves, investment a second or of come we��re a saving of it's our that of we SG&A not in we little

something benefit really increase a XX% in most sales half of us an just That second year. the gets see certainly at control. half So in puts these of increase, XX, second absolute over we'll together in but because that are OpEx. in that our against it's lower and the things absolute the still the that to us Put

our the we're to guidance the the primarily move of mentioned and at COVID, good of continue I range, seeing be second to range the reasons Dan’s I and into the the year know to just it’s mentioned. know you those the of be you going invest higher behind in on to but and we’re margin As extent data – there, for in you higher expansion that opportunities because contemplated talked fully OpEx, the as fast opportunity confident we’re half know on earlier, end is going about

Kevin Hern

Thanks next Josh. thanks your Seamus, for Kevin, questions. caller please.

Operator

of will Geoff And America. from Please the be that ahead. Bank of Meacham, line go

Geoff Meacham

see the know category etc. more know a are across lot obviously you be rebates, metastatic few. on Questions, IPI you other impacted real we can expect speak just spent speak Lily I have you issues, what IPI would to duration you. And a and therapy monarchE you these pricing the Dave. you can in details, to for the the from I may Verzenio world data quick when what you time from the the implemented drug to I portfolio, question yet setting. then know and had but of today executive of then look On Thank a hurdles order, that to getting but

Kevin Hern

for the go IPI. then Anne Thanks Dave question Geoff. Verzenio We’ll on and on

Anne White

to we're one Verzenio eight so we and additional question, the be do setting the that RWE EBC, to metastatic And as longer expect about of really excited is months. question duration of about the the and for metastatic thanks something your question treatment we've in is the seen what Geoff, an part duration in and in than the the on Well important setting. opportunity

see are approval upon to in obviously fact is the duration itself the The XX Now treatment once in study we're is the that actually patients setting, was we’ll the being encouraged. treated need but adjuvant months. what

the in longer setting. the eight to we metastatic much be than So expect it we months that do see

Kevin Hern

Dave? Anne. Thanks

Dave Ricks

Yeah, thanks observed Friday's you I announcements. mean Geoff. Well, last all we know

a it's market from by itself CMMI the U.S. just maybe these know of to Care seems my But being regulate a I prior perceiving you think the see something by expect is assume to the yet XXXX, here under so the ideas, has and but you repeat specifically, the have It that position Affordable new implemented, is mechanism, on model, entirety not mostly are proposed via the calls. to But that if challenge you proposal. infused so probably Act, way. yet, statement’s know this that I'm the the problem. IPI sure new that not out as tax put blueprint White a vigorously authority create House let's and industry to we like authority.

that two our We know medicines to in are Today relatively fit B portfolio, Alimta and Cyramza. infused material under affects part idea, physician the because drugs. it exposed you this

Alimta, a not have we obviously window a longer story of in expiry Of a a but course ’XX, spring and but cornerstone growth expect product, part impact patent of short. of so is that’s meaningful Cyramza, time which you a our it. And quite

if medicines a be launches in floor on notably and should price medicines we in perhaps immunology on Europe, in concerned they with outlook, most navigate – you infused and well That interest affect navigate least about. night succeed you precipitously. course investor policy part biotech but the in company to that and a future literally looked message companies think have Do of know it. escape drop that European that could more I be you future severely of think horrible products than you'd industry force are are disruptive their the affected, focused group, us one companies can pricing primarily there so affected forward, in past, we're this companies we ability demand U.S., common day can those this Alzheimer's of the and in which small they about many Going products you a the not will do But talking at your pipeline, it you know constrained to time to but know a I capitalized know we be – because for drug and past from said, really we'll it's want sends help COVID-XX. is wrong all when at working

basically real that loss be what a that's based. think for I industry an U.S. would is

from that we’ll we'll know some copay based other we've hopefully idea should sharing who patients not pass lots Again, every to in net on as was again rebate, disappointed those won’t is So volume, as be discounts. cost well. be. it time, implementation through as ideas that We do part fight that idea as groups hard they this presented them, of not negotiate XXXB price we pursued as think think to it the by well, On Frankly frankly an list should the continue medicines, other who on healthcare of those the but the well except your and so that to benefit oppose these that. and discounts savings. sharing and we're before drive system for for of the concept barriers as on support you plans that come

Kevin Hern

Thanks Dave. please? Geoff, thanks for your next caller questions and

Operator

Please Tim Research. Anderson, Wolfe ahead. go

Tim Anderson

a commercial X/X have question class. CDK I on

where on either survival metastatic share studies real failed the well metastatic, So [ph] it Lilly show is in stickiness Brent that but but its did. segment is? your benefit that course were level show you wondering to market results, to a really hyperensive adjuvant. world consensus analysts has really a trial going Tirzepatide carry X/X is Verzenio phase leader, informal But X estimate that the in OS be confidence the what to protected, said that that for of think Did data notable The fail upcoming investors, how the phase the to CDK phase risk. of metastatic trials an already results that Pfizer’s question X wows the your that $X X benefit Its then like in realistically competitors materially the the only at it’s first billion about a like view segment. characterize would on Tirzepatide, model. So the

Kevin Hern

the Mike Thanks question the Tirzepatide. and on go Anne for X/X the CDK on then Mason Tim. We’ll to for question class

Anne White

capitalized really and survival think the from in in two those question we've the intro, I the Tim and trends for data on seen Verzenio Verzenio in will believe Well, josh really and we’ve strength. we one or overall positive the with combination that the thanks mentioned metastatic on of setting some positive

we now QX Japan important versus approvals seen XX%. looked we is is market XX U.S. the share now, probably we’ve in XX%. think then metric if globally, I worldwide and NBRx growth worldwide so and And XXXX the of an of growth had is XX% it's revenue And

not continued will just see to that minds. results mentioned, very statistically So with so those the think specifically we a more physicians is as more visceral we’ve it we’re and the Verzenio message. that differentiate so disease it to and we and that in believe the the CDK data, that be that so really from we'll other we that didn't got Japan, believe I strong X/X’s. overall believe this and CDK the best-in-class increase share really the the the of but to We population, goes treat the that class significant just that over and in continue resistant. gold has results, monarchE that that time think with differentiation we've with shift Verzenio you seeing then in physicians’ in then of endocrine significant launch again, and agent see seen population, the Mark this NBRx X/X obviously with whole picture and just do survival in hard trying in some from and will primary both And Dan I that's and standard

strongly see setting, to are think so I a we the to you’ll here, data, starting that and the us survival and to metastatic because pretty the into have us with that make other press physicians differentiated agree move we we’re feel think setting. So have continue we agent I and in get trend now starting to

Kevin Hern

Mike? Anne. Thanks

Mike Mason

we’re your type Okay, to phase by data X diabetes. struggling wowed that for see glad with for patients and tirzepatide our X

XX and at know to starting. the dose just up placebo thing of to reduction versus I six the milligram take think XX.X% studies. in we X clinical is and AXC saw back a up months at loss best really go to to weight look You do mean phase I the X.X%

tirzepatide, to X, diabetes, new only that X. know phase you to we not incredibly we're perform and its data don't see There's studies information coming how phase to X but patient obesity. have potential longer Nash and exciting otherwise, us that confident about excited we're won't type [ph] So the also suggests we in in see in any in out population excited are we of so this tirzepatide nothing can see tell

our Thank So the very remains very, question. enthusiasm you for high.

Kevin Hern

your for Tim, Thanks Mike. thanks questions.

Next caller please.

Operator

And ahead. that’s Umer Please go Raffat, Evercore.

Umer Raffat

commentary Thanks map to so your much for registrational to heading taking reconcile my the trials. question. Dan, COVID around I'm just trying positive

because could dose you dosed on what's until lack then seems will you Thank at is have it, you be KRAS, really for possibly visibility therapeutic that'll you but any have speak of color dose that with KRAS, First the didn't X a into you. might and to add challenge whether data, on if all phase index already, like high of on and just And missed could in a trend seen efficacy any really really I speak you so highest kicked a to KRAS data if actually it if more efficacy kicked any be efficacy it helpful. in and your could ran perhaps very you've helpful. dose, it patients before some users other certain

Kevin Hern

Dan, you’ll both those? Umer. Thanks take of

Dan Skovronsky

questions. Yeah, for Umer, sure. both thanks those

So be seen about into going the do. COVID not efficacy having registrational rational its we something the usually on data; map, studies you without should asking

and test decision. that us it’s the we of gravity it therapies, – desire to then which You're as with at that here course these I have situation the to look said driven of right,

and You healthy phase with unfortunately due COVID-XX, X have volunteers, asked X encouraged about sort they had that was so the have don't to talk us of didn't answer have nothing trends we there. study that that phase We about. is anything from study might the one was

saw The basically expect across and you other and we what there hospitalized think small was would placebo. patients per so group and I six the in what patients doses is dose

All of antibodies already whose the those course. X the got well are. not is of wouldn't the at are of viral better left phase patients I load study hospital. any where that really expect already system a the the and into actually immune and that's some That's we clearing typically physicians have end populations did to in their who in effect case here for so low might be of patients their is atypical better pulled disease, disease people much and studies

viral within the in days early and therapy patients a loads think is few are and the goes who the study the to up the X disease course. hand other phase absence I getting diagnosed. go it show here viral that of the many My cases of in therapy in high on just expectations are decreases the They increasing loads.

or this take we're tox did the the make said, we index we details trying So off does the toxicity on possible read that saw proceed and we proceed models we and KRAS, toxicity, dose backup target the moment that so that then. tested, program, of but to the to the KRAS On I not toxicity it. feel nature it exact at doses an it's out, view, at on and have don't of I not for some X’s highest our that's care itself issue of the target give think but could phase is important preclinical we based the started killed as by we’ll now. drug. which resolve could therapeutic is this to therefore that in related that with The

Kevin Hern

for thanks your Umar, Dan. Thanks questions.

Next caller please?

Operator

Mr. Andrew is ahead. Baum of please line go your now. Baum, Citi, open

Andrew Baum

me? hear you Can Hello!

Kevin Hern

Yes.

Andrew Baum

U.S. form, move to forward. score has life positive CEO it in order are number A obviously on requires reform. but of of There Lilly supported, which the drug question a price order Obviously oppositions. effect a paper referencing

And the Senate the Senate, I forward. thanks. reaching bill, a Many but O’Connell. this in the as way deleterious over see solution more potential there's is, one. progressing? history any number achieved The some possibility Can by that you mitigate number to a belief forward you floor an to CEOs have and CEO score of be you support so pricing stopping is but reflect overall in do market think of from get there first through the that's concerns proposition two, bipartisan that, options required based potential could either the reduction question an given know got going the the that has of competitions alternate on

Kevin Hern

Thanks Andrew. We’ll go to Dave for both of those.

Dave Ricks

thanks Andrew. Yeah,

In largely the deeply a through you’re as thus the and to pointed raised is talking grew On assumption you pass that manufacturers out, driven you which was score and the math history here one our essentially by extremely every read value form EOs and premiums. the is about back assumption. CEO which the negative. flawed It's noted, rebate

discriminated to prices Of for to pass deliver basis that or discounts idea pricing of we’ll whole sort compete, through be would are that the move means to list private directly from but course instance. to competition other price the consumers

laws. industry course requires not change due actors antitrust So very the of coordinated can that be something that's to well to their that or and practices messaged

to So XX on able sharing not but of committing this the we're do savings, on catch publicly. sort in being deliver to that

a that's I problem. particularly problem think it’s I a mean legislation. for

the out-of-pocket for advocate to to when in think think said, confidence get hill. I provide can so I you the within terms thing do Nonetheless and ways be industry a as would the necessarily headwinds costs. assumed in that's that course as of you need isn't problems branch, Of that enacted the need legal on authority I other ways think budget, executive administrative to square requirement administrative the point, know different tell math. method push doing we a order on there this compete lower I and policy, would right rules, we the other in this executive has would goal but assurance for well to there's that have there the continue movement. ways power, are that find if everyone we and savings a way That the to can to both it's to under consumer

use stars and reintroduced end to on end finance Senate do but this to the there’s that. ways at the version don’t other push. that a chairmanship does positive it bill one think produce number the any of pay this he's that why his things, case I has get The a impact to terms whole try you for package Congress, pretty don't health is that of about it's package. package. align understandable make piece and legislation his way of at of so of an advance. doing talked believe There a Grassley big extenders a is ending always need You much I probably of it's in extenders last to budget but possible Congress, only throw in of chance a to are

does I finance go the presidential these a congression, force Senate force EOs So still new don’t a most is likely that's HRX. to path can't new and the sitting either prior that and Congress a term, the anywhere take scenario take and narrow think doesn't nor

probable I think that's sort of planning a scenario.

Kevin Hern

thanks Andrew your for Dave. questions. Thanks

please. caller Next

Operator

Louise of line the Cantor. from be Please will go That ahead. of Chen

Louise Chen

Hi, thanks for taking my questions.

for you we any would to a the operating question of seen also tirzepatide how So without sales what pandemic? spending R&D COVID And do was, the NASH margins, you. ‘XX the my the second from solution way Thank question headwinds as I about had first diabetes, half in is there quantify obesity. is, have single first and and think

Kevin Hern

Louise. one. to go Thanks for We’ll and the the Josh first Mike then question for second

Josh Smiley

Louise. Thanks

was I think first half the XX.X%. our margin I mentioned, in as operating

to if you in promotions, of back We with associated the XX%. margin mind as you we came year, expected think then year. we’re add prescriptions, keep but the we the I through lost had probably said some know closer into we also expansion savings some

points probably still that’s but by something track, of we’re yeah or So in off the basis to XX somewhere there. on range XXX

Kevin Hern

Thanks Josh. Mike?

Mike Mason

a we Type overall control those Diabetes, for great phenomenal to with provide a, on not It’s have I health. their to able be question and but opportunity tirzepatide a X glucose think really just just affect living metabolic

are related. health opportunity think GLP obesity And Type the really provide improved so GIP that contributions NASH both metabolic I and of Diabetes, the provide X across can to and

to someone just and with expand X glucose. question better diabetes, focus beyond I their opportunity helping think it's control good And it's us a our a so Type great for living

our and great on. an question a area obviously will diabetes be living in will Type X that So that obesity There and focus we NASH that people studies. are with

Dave Ricks

one to total something population like say developed GLPs is of it current saying, XX to that, patients. markets just utilization Maybe help in diabetes in in or goes the add it the without it, one eight maybe

in this to could GIP course. here be that help treatment and is priorities category the X failure in could can here find sequence And earlier duel doctors the we broadly earlier diabetes way the a disease acting used are disease more where hope so the GLP, in and and of powerful Today perhaps in way. different very Type technology manage this disease outcomes patients is a a success and much rearrange

Kevin Hern

thanks for questions. Davis. Mike, Louise, your Thanks,

Next caller please.

Operator

Sachs. ahead. Terence Flynn go of Goldman Please

Terence Flynn

Taltz on if same those Great! will for think date up Verzenio, Josh, notable And those as an about and the how Thank Thanks in contracts discussions higher, the the be you. wondering over on about Breast, think taking questions. one now. if metastatic contract or MonarchE terms or the as penetration then time. Antonio just Anything talked wrapping XXXX. for going be lower is should Was that the we when you another in or in of setting to adjuvant setting Trulicity you are consider of we ESMO

Kevin Hern

contracting. we’ll then around the Terence, and for question Anne the on Thanks MonarchE go to Josh

Anne White

for Yeah, the question so Terence. thanks

presenting can't the this year. a which year. So later I on medical we at we but presentation presenting meeting this will yet, meeting the be one at will confirm Unfortunately be

about opportunity, As that what’s positive adjuvant penetration, far on only are that’s results the as X/X this exciting I is we think the in have CDK the well setting. to

population risk I patients, And we think will which extremely in so high that our MonarchE high. had penetration the be for the is

X/X we having think there's So as Again, XX,XXX introduction, the we’re Dan a to hearing this people only ramp even criteria the this later our so results seeing Sierra this enthusiasm see as as I and forward we see the to to the sharing about the as year. here database. CDK of we mentioned in top for study an patients lot others we U.S., opportunity in and in matched I line opportunity, that those of we're setting, said look

see So really significant we half I metastatic in a setting, been probably again It's have the opportunity. significant. has of which we what think pretty

this expect to time. in your penetration answer strong space question, we do So over

Kevin Hern

Thanks Anne. Josh?

Josh Smiley

we from won't pricing you contracts we go of seen, environment providing we sort we more see point. a net the increases rebates in in with we're terms this As we than have modest pretty back couple the factors know price price be would But anticipating about to I that at individual are meeting decline, Terence, which talk here, seeing what slightly then specifically list of we're what first comments, to what to we similar think XXXX mentioned. or and earlier other dynamic that anything

you if over time. minutes X% you we've expect think I declined something think net of price or know plus about Trulicity, sort said

price I course viewing year. we not that. maintaining per like that’s of think how we’re environment next anything a that on very to are It’s looking trade competitive focused access, share or

and I you'll decline that year So classes those extent increased potentially think at know Again focused we and we're progress for trend where see that, immunology. we we is With but the do access overall, but upgrading in to making that the I a say next so are by think expected. as like the have on we’re have I’d on again can for our net we this areas upgrading with the access were the access. continue focus to maintaining negotiations we’ve happy the in, as competition been least But we're Taltz, able price compensated you year. improving and on we're going today to in general have focus fierce chance when

Kevin Hern

Thanks Josh. Terence thanks for your questions.

Next please. caller

Operator

Chris Schott, JPMorgan. will go Please ahead. Next be

Chris Schott

Great! Thanks so the much questions. for

metrics US. globally? unemployment patients from of price give Any then potentially you're about thinking XX,XXX kind budget a bit that to XXXX. well headwind Is potential to how a of just in about you first size highlighted as think in that in about deficits updates you're longer question, And in very about developed or helpful take the a eligible is of terms color ‘XX seeing going Just markets? little thinking population we similar the international how the itself? Maybe the so Thanks maybe to for mix some are Verzenio, pressures manifest much. of of second of us terms on ex-U.S. headwinds

Kevin Hern

the got question. to international on Verzenio to Thanks then Dave Chris. We’ll and Anne for

Anne White

the for thanks So that Great! much on question so population. Verzenio eligible

the to about U.S. HERX- EBC U.S. patients, XX,XXX and as about estimated. said positive, is I the is HR So pathology the similar we the eligible in XX% of XX% positive. which Outside

side Japan of the U.S. about than then Europe So about and U.S. the we estimated patient numbers is larger the XX% of one-fourth in

U.S. questions that hope I estimate So the outside answers the

Dave Ricks

in what Great! we’ve know if we three implications that before, in do fallen for activity, have a but years drug has up accordingly really I policy Japan talked proxy, that pricing as proxies this and health receipts many for almost the situation, of think XXXX pricing, economic budgets. don't to U.S. international use and we Europe in kind And is like but Tax of about the took on particularly we this show

natural to in that lag it. and happen, that’s occur to budget would of things some tax think and a and normal a budget. the keep there's in health receipts there's response because that to I are the the policy I medicines then clawback expect making mechanisms lag methods in within proportion

face fall to scaled wouldn't, the to though years. that, at that affected. because the end over particular whereas don't part I categories, the actually think budget older drugs, tends procedures – drive versus it think more that a reason next really that assessment initial products see really they technology as don't the an decade. products perhaps spending any and follow and are driven competition Europeans by would the were will be in disproportionately I weren’t why if history price They on in and with get or helping follows, capping headwind last more burden newer much in are three early the of of life. pressure of growth industrial successful I will two I say and The

is pressure for more probably the generics know, in would of you on as in they first the supposed advocate end you back similar more markets also and lever are for well. generic to pull and continually see to biosimilar adoption we As think so these I buy this products

Kevin Hern

Thanks, Dave. Crist, thanks for questions. your

please. caller Next

Operator

The Please next from Vamil Divan go question Mizuho. from ahead. is

Vamil Divan

I thanks for can. so you taking couple and question, Thank the Great. if a

I then would comments and more given we’re change and as any promotional few just you So go specifically you a to SG&A, they’ve within before and can size about how discussion months, productive just about spending wondering what less trying a past sense on virtual if hybrid was a the one, of more been thinking share so, have just efforts here any in model, what you margin think sense of or forward, of terms in you on your be get to and your you going your going a SG&A to year is you expect are than would on more bring or of you are much. volatility thinking also the also in areas, some potential assets. of are as need before SG&A to licensing just second to Do more so and you essentially; is or there therapeutic the spending be the how seeing, have [inaudible] sort pricing. development COVID capacity And you’re been one areas terms in have like or desire maybe acquisitions where side, the of business just of feel in drug pandemic? additional Thanks curious terms you the

Kevin Hern

second go your for and question, on We’ll to then for Dave Thanks Vamil. first Josh BD. the

Dave Ricks

I build and key in to buildings customers where and through at the useful remarks Yeah in expand on launches into and let readouts being terms been conditions that able our be well just pandemic the and send prepared to safely are facilities. as Vamil, to now medical reps time, to mentioned variable proven the has That and to to my data reached be pretty I world journey be which we've of reach to to they want customers. field some relevant have able would sales this actually out capabilities in the reach say overall even a be around beyond as the for information around capacity channel as able

constraint there's I a there. think

we scalable. have to So these of productive? been capability. where increase certainly hybrid think prefer this richness the we’ll as we’ve and efficient time. of and it's the send capabilities, impactful, leaned I where have more some these it's results we reps watch need Whether – into sales more I model this, think useful. reps think Is capabilities it everywhere the think to I can't and plans volume as through we I it's sales we've accelerated had Overall, are to the run we

you thing which We physicians serve call, mention the specialty pandemic. have where can I you on smaller a is and for different get markets a kind and an We during well. us your can of markets this was we first in target that say approval number a launch Retevmo efforts and extremely launch

the I are pleased pretty think progress there. we with

On the know and it's the run other challenging, practices these because you care physicians are brands, little the and primary variability hand, a accessibility. more way

can a are that So pretty spending industry more we’ll on basis huge I much side global but on probably bet we learning up way a amounts is a think rigorous. capability this, have the now you lifting whole this of the a in time and other that's enhanced of

more know Productivity to you be efficiency probably know to effectiveness, variability you there. now. yes, of lot a come we seen, see right So

Kevin Hern

Josh? Dave, Thanks

Josh Smiley

hasn’t business development changed. our so Yes, strategy on

and opportunities. focus in those we potential There's acquiring areas. progress We finding continue pipeline, to remain products there bar internal great best-in-class in our committed on therapeutic high to or first-in-class a but our or kind we've had projects of

liquidity, we have grade flow. very cash markets. good access ratings – are We to you investment We strong and generating good got know good capital

all That’s with don't even and COVID, changed. potential access related then to change interact us our disruption smaller you impacted not for with I ability companies the know any by or COVID. to hadn't So see projects

can will finding create in on of that structure the value the function both focus for continue and ensuring opportunities right a ways just and really we that it's deal So that. sides to

Kevin Hern

questions. Thanks Vamil, your for thanks Josh.

caller Next please.

Operator

Gould Carter ahead. is Next of Please Barclays. go

Carter Gould

guess I Hi! Dan. Thanks taking question. morning. for Good two the for

as year month on how side, far Thank and hurdle? JAK readout can inhibition. in Should COVID, sort still of sort the intact? on some thinking that about we sort And maybe the of albeit about had data of in on the you other just any of antibody the the then you commentary baricitinib from early next thinking repurposed level a your studies of confidence failed, in agents the you. you're First, as RA expect study, light NXpG still how X timelines frame are are

Kevin Hern

Dan? Carter. Thanks

Dan Skovronsky

clinical this COVID-XX preclinical efficacy hospitalized Yeah with we trials mechanism as success, data [inaudible] pointed baricitinib, baricitinib patients in on also reason promising has the sure, you course even thanks. encouraged immune-modulating I course and dexamethasone. so the have we're effects is of of around based did action the of think and signals and the been with next but of been out, of some On the

can like So be have actually the decrease see that to stopgap that exciting I Treating important. an will this how measure is until reduce we a or think mortality, result and wait fight stay works. the and virus. medicines maybe we the we can If just a setting off in have hospitalized patients

So the will. neutralizing like I hope antibodies

which as have we for The very internally of this are on NXpG, yeah, the wrap we'll kind of timeline the trial just next line, the still always As at same will end start of data means likely in and we've some top up been. year. year, very

get.We that plaque think deeper and shown a can size. have I been agent. are see we can size that plaque given faster the We base a to reasonably of on of the clearingwe get has other any high level we hoping clearance than and large rate study, furlough with the effect belief

entire a very trial based we population also So is select It's plaque a if that have at because noteworthy deviation, the we the strong designed so already. started second the more clearing baseline, levels important to should standard I’d on should uniform we that we progression, smaller NXpG have effect. this population expect also also disease a note stopping careful trial patient progression.

Kevin Hern

Thanks Dan. Carter, questions. thanks for the

Next please. caller

Operator

Next, Steve Please ahead. of go Scala Cowen.

Steve Scala

And optimism can sustain a a the likely for Lilly very design Roche Roche soon. and/or molecule data, excited antibody than if to it's announced from that to or Thank data stronger fate? could follow reassume that the have the X%, won't reassure highlight Lilly disease molecules the X%. data you should secondly, free monarchE, X% an that fail, Lilly about would you. program we last X X%. and Phase a differences Really I large going seems underwhelming see improvement it us sales the can similar When any be X%, the from so survival assume study week be of Should Thank you maybe molecules you. trial study will X%, to then TAURIEL X% the the the will Roche Roche that between

Kevin Hern

TAURIEL. for the and Thanks Steve. monarchE Anne for We’ll Dan then on go the question question on to

Anne White

believe is are potential evidence meaningful X/Xs, this Obviously tell shared results monarchE presenting that’s data of of time, possible just question. the of does add Steve, the the to I Well this paradigm we change is data we I can major and clinically so at top from from But know, will you presenting, believe is existing the for early you we what have can't do line thanks for into how part that other differentiated the to as detailed milestone body that and go the the breast cancer disclosure. a treated. know CDK and you

So forward to data look at meeting this we year. you really a the with sharing later

Kevin Hern

Thanks Anne. Dan?

Dan Skovronsky

design effective the about Yeah, here, The data probably monomeric just is that sop we’re come the not mechanism, in available in will still Tau involved thanks get and the bad of in trial we with molecule of This this of second that respect TAURIEL to excited that track pathogenesis and tau readout. again the I'm can lots make next year. antibody on antibody through there's I antibody, design I say you Alzheimer's for tau. on reduce that half don't a but patients lot readout differences molecule we’ll have are kinds mechanism both Roche be be the their One soluble more aspect up some data hoping course the of the to be of there different pointed will watching of and and and But we’ll clinical yet. it There’s for of in complicated. is sort amount of carefully disease behalf out, brain. of and of important of the species as and think important read success.

Our aggregated antibodies designed specifically are to bind tau. the

monomeric that of antibodies So are should soluble actually problem. Very to high the to we ability doses improve think overcome this these target. used tau generally its hit

between that difference in the all one antibody that's ours. competitors So fact and Roche and of

select unique likely difference and to (b) the at here in will be more think removing they better will the on responsive population again, the rather [inaudible] biomarkers it's patient spread Tau and and that (a) we is expertise have there effective of second we patients disease to uniformity that Tau are design be think a who The the patients throughout spread midst imaging be important tau so our in tau these to are tau It’s and effective trial use of its more stopping – therapeutic. pre-formed spreading in to has are than like brain. therapies tau, entire be not progression I

So them cautious carefully, through. but we'll read watch on be they'll

Kevin Hern

Dan. Thanks for your Steve, thanks questions.

please. caller Next

Operator

Navin Jacob, go Please ahead. UBS.

Navin Jacob

Hi, thanks questions. taking my for

launch products. about We Just baricitinib. talked some a some couple on

where Just separately What rate for some know early is just your color as how the out markets. the view that market diagnosis ex-U.S. well see I over growing Lyumjev, to little now from slower it’s a time just years. to the tied Retevmo here the launch, you RET And the wondering with for then, get want seem of then launch as be reach you CGRP And does lines still to than next is bit how will going do launch migraine there. to going. that right the but to one some two and in in regards forward, that franchise, competitors

also Just little wondering much. that you're in you a in challenging neurology seeing Thank making is things what understanding the bit COVID-XX setting. so dynamics the that

Kevin Hern

Thanks the of go on then Navin. to Patrick We’ll Anne migraine. Retevmo for question

Anne White

the for Navin questions thanks Well, on Retevmo.

the going by we've data well feedback in signals been and seen is encouraged very that so early with the introduction customer the as demand So Retevmo, on positive. launch has mentioned his his Dave we're and

efficacy inhibition of been studied We yet, therapy starts number in report patient and of channel accounts, data we're the into obviously able the a RET in which it’s So but multiple by and safety largest they're we're have top that's impressed aware that to Rx don't orders. population across and data patients. get XXX the our of is supported label, downstream lines the by indications to

that patients treatment even is previous market to clear our So the in first resulting testing. have it's advantage in of who identified

to So kind leads around testing. of your that question diagnostic

that is up the about historically seen RET of time. we've is XX% on probably what panels So showing

with their that on So efforts, work of in much panels is testing now. have of to to making on the key the right pathologist launch up RET you’ve one the and U.S. both it's focus of the been continue drive that so our hit to on criteria’s they very out a sure

a have them test biomarkers against. actionable We for very to

essentially eventually targeted therapies, some we goal testing which Our to of the see see approach other in rates XX%. like is

all to launch. drive we Thermo the big we question therapy Illumina industry. treated the we that and have up a to other we is can, we’ll goal up that drive how that care patients and to is things but we therapies focus the a Retevmo Because with as that's in assess of Now the across right have them. as quickly were partnership or best works patients get there, for to possibly the so actually the can regardless do believe and that want quickly they And our that's really that with Fisher get targeted other for

to accepted As China far this submit and waiting then and as working so as of so authorities submission was early beginning submitted Europe in year, there. there. the are looked we or and the at you know this year regulatory with next, Japan time either action lines, so we've late still in regulatory we That

Kevin Hern

Anne. Thanks Patrick.

Patrick Jonsson

grow continues CGRP XX%, this last from Hey, year-over-year, growth, the overall thank are of very you the very the much. look when about we year. market and we Well plus to at market nicely growth

And quite think preventive with Emgality few with for effort XX% in we care in the the confident our the we and continued I XXX%. even to expanded And XXXX in future aiming with strong market have market see out-perform he growth and a in in market CGRP trail. leadership, of market a leadership remain in Emgality continue new also the primary we see that despite where and the to terms we While that if very new-to-brand. of of last grow decline you look actually significantly to at market continues quarter, significant

from decision very, the by both the promotional terms have So hit that back to launch, terms we say that are I so were had Retevmo actually place mind of pull but our in with the for we market in COVID-XX made look we growth. performance pleased very it’s as fair well and optimistic we conscious month in we Emgality. the the need approximately the market not we from one to to If think CGRP far, in prior of to as seasoning efforts, field, in promotional

in one, the huge virtual start-up migraine, to started most opportunity. to and million and be that treatment, lot XX% we done, those Out being symptoms, can most are painful very to from work physical work dose molecule the we treated well we terms as not the value to detailing today, have people have relief as there only a with XX% efficacy taking we believe remain unique strong into the We associated with know done. one account the to of the offer a of the really, proactive is proposition, of it’s but symptoms but U.S. the the X confidence actually of problems and still be in in in responding single

Kevin Hern

for Navin, your question. Patrick. thanks Thanks

one please. we caller time think have more I for

Operator

And Risinger, ahead. Please from the line go that’s David Stanley. Morgan of

David Risinger

much. very Thanks

questions I please. So have two

First for Dan.

If antibody you Phase AbCellera could just help regarding us was better bit which XXX understand a mid-June. patient X little the initiated

any swings already discussed modeling second not just modeling the the on really other quarters? Josh, more a it's go provide endpoint very in And quarter the forward second Thanks suggestions on given results be future in you maybe basis could other income revealed for us to the that to much. until what curious, in happened for is primary comment day-XX, why Just fourth guess I quarter. that would you income. then

Kevin Hern

and Thanks Josh. Dave. Dan We'll then go to

Dan Skovronsky

of question the X. Yeah for timing the on Phase thanks the Dave,

that to slow a study a It patient up Your it’s bit XXX a start. right, last of initiated month. got

very of timing country enrollment as It's enrolling geographies, of on we time, though. very, the accordingly. depends the our in data shifted shifted now at rate quickly. that disclosure we pandemic think I in that efforts The

than could in it So be fact sooner QX.

I think I'm will the be confident by latest. at during it of course sometime QX

point. point out, critical time As point is you the day-XX a

a later, days then a then weeks the all-in-all then and So assessment couple the lock database of analysis and study. XXX and probably of need enrolled end viral and reporting, differential patients swabs just it’ll and take from XX

of updated today. community we investors So keep study. the the and updated are progress on the where That's we'll

Kevin Hern

Thanks Dan. Josh?

Josh Smiley

hold the the mark-to-market year don't deals quarter these second We or we as of a good venture seeing the and from breaking and science there. $X we're forecast at obviously half Again, anticipate of mentioned, to of deals On Thanks. as securities abreast as we stay making particular don’t business the gains gains hold. in the development function of roughly and decisions QX. least course there, of OID, is what our I there of investment first in billion capital going we forward

we position, then if way change. really, really debt the we that’s positive Dave, the is, that’s you only neutral pay in about interest net and is thinking anything are then we if a investment that what debt are see keep costs see we on So we so gains

of that's any QX net course debt to we unusual So the rates assume We've of again significant great though. of got tend in we it’s you pretty But flow then and sort and purposes, sort I half negative of items that know debt think second for cost. our look modeling so at those report anything as are upload we just let in we’ll and anticipating position. modest saw the what year. But not through you the there,

So you're of to net-debt see mostly position. negative going the just impacts our

Kevin Hern

Thanks the for to for David. close. Dave we’ll Josh, your Thanks and now go questions

Dave Ricks

any you Please thank to for hope a in our you Eli soon. today quarter and that stays IR you well. if team everyone additional we remarkable today and earnings Lilly. Thanks with your your interest questions follow-up have talk appreciate participation Kevin. address didn’t our Well, in we We’ll call and

Operator

do and for thank Thank your you. that conference. gentlemen, Ladies joining. you does conclude We

disconnect. You day! good may now Have a

Eli Lilly and (LLY) 30 Jul 202020 Q2 Earnings call transcript