LLY - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Lilly Q4 2024 Earnings Call. [Operator Instructions] I would now like to turn the conference over to your host, Mike [indiscernible], Senior Vice President of Investor Relations. Mike, please go ahead.

Unknown Executive

Good morning. Thank you for joining us for Eli Lilly and Company's Q4 2024 Earnings Call. Vice Investor Senior [indiscernible], Mike President Relations. of I'm

Chief are Lilly's Investor Chief of President [indiscernible] Chair Jake me Lucas Mark Officer on CEO; Lilly Ricks, call today's Montarce, team. USA. Immunology; and President Lilly Skovronsky, We're Relations joined Joining Neuroscience; Lilly and Ilya White, Dave Dr. President of Officer; Yuffa, by Patrik of Health Jonsson, Financial of Lilly Anne and President Scientific of Cardiometabolic Lilly International; President West and and Toll Heuman, the Van Naarden, Oncology; of Lilly . also Dan

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

could on including differ results to due those actual Slide several listed factors, Our X. materially

differ subsequent contained XX-K for benefit community. about for Additional not latest Form of with our filings our sufficient materially is investment decisions. is and is information that information products results concerning factors we and in the not the prescribing SEC. could intended promotional the The cause pipeline provide to be is and to It actual

our transition that remarks, to prepared focus financial will please our our note we measures. on As non-GAAP commentary

over I'll Now, call Dave. turn to the

David Ricks

Last positive results recently insulin launched Sator billion. X exceeding around patients advanced in quarter bringing our most Lilly. the Thanks, grew gained alpha a pipeline the first was trials. [indiscernible] top world. full momentum. by to XX% for recent tirzepatide our grew productive year XXXX, the time guidance our demand people to our In revenue Revenue we increasing invested line, for year life-changing for grew importantly, year, Okay. by and Phase supply $X compared delivered XXXX additional our chain El our XX% meet announced for XXXX, Mike. as and III We we products to in Most more medicines. medicines

III on data. based Phase positive lepadiserin, [indiscernible] also We programs phase earlier started for and oliveracib

efforts acquired Center Seaport We antimicrobials. announced collaboration and a complement Lilly through for as a invent to Boston investments medicines pipeline U.K. our in Indiana, Wisconsin genetic Morphic our We announcing European to our with Innovation Therapeutics agenda, to new OpenAI in Gateway and lab Lilly's in Lilly acquisitions in collaborations. research. expand announced the continue We novel collaborate manufacturing opened hub in footprint Ireland. the and to and We advanced with a

expand Since and billion. now commitments acquire more facilities build, total XXXX, to than manufacturing our $XX

received products our indication drive SetbonandOSA Importantly, a we brought patients. and regulatory new new and and [ innovative In margin we portfolio our for of for capacity enhances medicines strengthens expansion. progress This new [indiscernible] growth to to XXXX, approvals ]. top-tier

a can Mantaro against by across you oncology, our immunology X, uptake and led in our more As QX. new than on also by neuroscience. solid and grew $X.X progress and make billion, continue We [indiscernible]. QX Revenue to XX% deliverables growing strategic Slide products of saw see strong performance

for a in we Our last of quarter onetime We tirzepatide We key failure. and submitted received metastatic business achieved [indiscernible]. ilumastrent new business, the by cancer and excluding our heart indication to several pipeline XXXX approval QX [indiscernible], Since development. grew excluding of earnings compared XX% breast benefits for milestones. call, Zepbound for the

on our second compared XX% doses of III demonstrated positive X.Xx of medicines weight study, overall Zepbound make results strengthened to to half second in the of production [indiscernible]. the the 'XX the greater SURMOUNT to where in We position our Phase compared saleable supply announced also half X a loss 'XX. delivered target We relative incretin and

from been orders levels. as fulfilling And we Lilly We have high With the wholesaler more patients bound at using XXXX. wholesalers very uptake of had pharmacies no orders single-use increased. Direct, set vials close back

program. inhibitor acquire pipeline. to pipeline to our breast our selective augment add to This clinical transaction a with Scorpion oncology will external innovation, plans continue announcing Therapeutics internal cancer PIXK We stage mutant asset

shareholders lastly, returned repurchases. share and billion to via dividends $X And we

that, XX% On a increase X, end and the key our and QX year, the milestones program to other full in quarterly announced share consecutive In see addition Slide of call, we at list you'll at including I mentioned the a dividend. seventh billion of several events the our $XX repurchase here updates.

and to year full on guidance. to the review call 'XX details Now over like to I'd the and XXXX provide turn Lucas results our . QX

Unknown Executive

X the fourth Slide Dave. the financial our summarizes Thanks, Slide for year. full quarter X in performance and

strong administrative Mounjaro in [indiscernible] efforts XX% expenses Dave promotional by to Gross our in our increased programs ongoing increased primarily and and percentage for onetime driven assets revenue III QX, early mainly As . In and and future XX.X% by appetite as to of we increased was related mix. investment and margin includes grew X XX% total, and in driven also XXXX QX as selling XX%, on XX%, continued mentioned, and U.S. grew excluding U.S. launch favorable primarily to development. expenses a into activities Mounjaro of from in Marketing, R&D portfolio non in revenue launches. several late-stage started Phase new the payments impacted Performance clinic. portfolio. [indiscernible] This support advanced our new product revenue by Zepbound. direct-to-consumer [indiscernible]. business

delivered Mounjaro. to $X.X includes from effective Operating new in revenue increasing driven IPR&D the our $X.XX commercial per international compares acquired The U.S. more billion. launches to investment tax income $X.XX This higher by than doubled, share $X.XX to of of of acquired We increased of products. that also rate was XXXX charges. XX.X%. R&D. inclusive support QX $X.XX of earnings We outside

the On to to rebates and declines QX decreased in related QX, estimates favorable in discounts partially offset Europe due XX% the by in of changes Trulicity. grew Mounjaro prices again driven Slide constant to in growth. in currency. XX%. Zepbound X% for and of revenue the and Mounjaro U.S. contributors, revenue growth XX% were increased XXXX. Realized effect by robust U.S. volume on revenue we growth volume largest price, rate quantify X,

uptake pleased markets. of We European launched in continue to have now major all and the Mounjaro be with

In was revenue This recorded alliance addition Mounjaro, amendment onetime from QX. Jardiance benefited with to from of the with payment in European [indiscernible]. revenue growth associated our in

this revenue Europe XX%. grew Excluding payment, onetime

currency. Japan XX% Verzenio XX% in China, drove proceed revenue constant becomes recently growth. was supply [indiscernible] [indiscernible]. Volume Mounjaro will China limited Mounjaro, In growth constant volume in a was and increased made revenue driven launch grew and as available. by with in currency. available

second China We supply Mounjaro XXXX. expect meaningful in a limitations, to modest sales the of in contribution initial more half due

in of products. Revenue our on provides in and world constant XX% volume and an Slide of new driven growth Verzenio. update by grew XX rest currency, Mounjaro growth of the the performance

in began billion, of by U.S. continue led sales $X.X we Manzaro $X.X activities of quarter, and than going more a performance uptake. $X.X billion doubled QX U.S. global very products to and see this We promotional billion. to is well. New segment sales strong

In in as QX, new leader market the by anti-obesity the mentioned Sepang prescriptions. became market

[indiscernible] XXXX. slide in revenue quarter market Incretin was grew shown XX% increased compared revenue worldwide [indiscernible] $XXX percentage We we million. to XX, in XXXX. share As onboard million, U.S. in market of QX sequential growth. of $XX to adding X solid revenue Worldwide QX Analog points increased another

population. approval drive broader With in to Crohn's patient in look we additional an use the disease, FDA recent

launch increasing. is have [indiscernible] been prescriptions the steadily progressing The in well U.S. and

commercial placed positive early, Medicare sites plans, health integrated we across systems, it and priority and number key saw indications, While accessing volume including coverage indicators, of in key of by ordered, infusion momentum is orders. diagnostic

We of encouraged receptivity We the in by levels [indiscernible] are launch positive U.S. saw engagement. and the of early high physician

on now managers In plan in [indiscernible] access largest accelerating with drive investment activities start. to expect benefit addition, we March. beginning new commercial X We commercial the in of patient

revenue by QX continued XX%. as also XX% [indiscernible] XXXX. total to increased products grew by performed well as growth U.S. compared trajectory Growth prescriptions

breast [indiscernible] revenue prices. benefited U.S. In declined lesser wholesaler lower stocking increased year-end. addition Worldwide a by switches from to XX% and cancer strong at the extent, execution in realized Trulicity driven and to revenue Mounjaro indication, early

capital On Slide an allocation. on we XX, update provide

XX I Moving will discuss XXXX XX, our financial guidance. and to Slide

As of growth, XXXX compared total anticipate in midpoint approximately million $XX to XXXX. XX% class shared, XXXX. represents U.S. seen between we to $XX increasing previously consistent growth The with expect prescriptions continued revenue We the trajectory million. and be

expect We the second to XXXX. markets more International significantly performance will U.S. in the overall year. outside Europe Mounjaro new to part of the in throughout Mounjaro launch revenue and contribute

newer incretins, as expect fewer we patients volume Trulicity. Trulicity continue starting of declining are to uptick on new the Given

[indiscernible], oncology, neuroscience expect We and KISUNLA portfolio to revenue EBGLYSS, be uptakes the in OMVOH, immunology other launch level, continue. currencies. and At the as a as XXXX relative dollar to foreign to also grow exchange has strengthened headwind anticipate we

by overall D forecast to we single digits addition, net decline U.S. percentage Part terms, to mid- including in prices In changes. high

XXXX of first expanding compared the continue increase capacity our the X.Xx produce an to half the XXXX. in estimate to of half first We of amount sellable doses during manufacturing

our to to begin anticipated continued we is network. manufacturing make year, on Our progress medicines facility [indiscernible] and in expanding shipping plan this

between expected At patient our U.S. Our including the margin be new of divided less OpEx this efforts new of XX.X% invest behind to to points gross will to ratio compared XXXX. and XXX to margin expected launches, revenue In basis approximately XX.X%. the reflects we SG&A, expansion activation. continue by direct-to-consumer in drive midpoint, is

of In addition, new markets. we plan and Mounjaro U.S. the existing support outside in the to investment launches to increase

late R&D, In in accelerate our to phase we activities. early and plan investment

as X As patients. started investment will the that III anticipate ramp in new programs those will we and enroll Dan XXXX share Phase in later, programs studies

new programs in initiate We also Phase to plan XXXX. III

or for what expected for While basis. into to $XXX include tax our we rate by development, expected a this share we and expenses investment doesn't be million, We related IP $XXX our to charges a to high advance effective be clinical expense. estimate is on approximately Earnings forecast be is driven expect scale bar R&D to EPS R&D. This to Other XX%. per keep $XX.XX year. a we in interest to non-GAAP $XX million

the of key Dan provide in Now in call expect to over XXXX. an and highlight progress overview we I to events R&D will our to turn potential

Daniel Skovronsky

Omvoh sleep with disease. and productive the earnings our benefit approved R&D X obesity progress obstructive in Lilly were provide cover Both pipeline potential mark expansion another approvals Thanks, of severe patients Since then XXXX XXXX. for Zepbound for quarter. each QX, adults an important events to are these new the of I'll apnea events Lucas. key from Crohn's moderate medicines. U.S., finally, and the for key who milestones and indications last call, can and in in number had

[indiscernible] in [indiscernible] we've U.S. data. priority the tirzepatide for submitted completed XXX for that review. from pleased the submissions to share I'm CLL and Kisunla the with metastatic We breast heart submissions. also cancer EU and include data the a submissions and the FDA regulatory an submission to imlinestrant to modification dosing update to granted has label for global for the failure Moving in Brewing U.S. for

the for under same Phase sleep III more protocol apnea. apnea people U.S. in in oral only an apnea. new our sleep [indiscernible]. for After first we this program a can to to X portfolio, evaluate explore In master obstructive a obstructive obesity was medicine initiated is We're excited in the and sleep Orfarclipron approved benefit This studies with if the benefit can for Zepbound deliver for includes program GLP-X disease. also prescription obstructive and

therapeutic we have In Lilly. Earlier at II in a I XX X data -- programs. readouts. assets XX X Phase we publications and capped from new medicines Phase disclosed of new In We advanced Phase top-tier trials, off new in Phase in over and total, Phase our in the of major for we year III the year, III including advancing been productive into molecules, on oral started areas. world. colitis. well XX new second based we many discontinued programs one We as I II Kisunla for new began clinical X phase for And regulatory GLP-X eltrecabart indications also pipeline. Ebglyss Phase II into X medicines, QX, each the journals. new Phase a advanced around to added early asset the studies ulcerative QX pipeline, as and obesity approvals received X medical

outcomes fruition On Slide XXXX. our to pleased XX, that positively detail milestones XXXX I'm we our nearly for anticipated came these in of milestones. all

X year. we portfolio, XXXX. Starting this shows key R&D Slide to year. to initiate Phase we focus this III programs new with our our Turning milestones expect late-stage XX expect

administered begin oncology, lung cell be will to adjuvant an immunotherapy. in building for with its our KRASGXXC First, inhibitor, cancer Phase III non-small [indiscernible], program on ability

Project program encouraged through III update metastatic well, [indiscernible] ability combine the progressing at we've on Phase shared Lung the World aligned the and clinical are We Conference current last to other the fall pathway. we with FDA agents. Cancer our and Our is dose a on Optimis with safely by

the and Phase unresectable agents new cancer moving will Our to from on resectable setting program with earlier to KSGXXC-mutant III in cancer focus recurring. an prevent both lung existing in combining approved

upstart ongoing looking The multiple sleep orpeglipronin III adding initiate the second to that [indiscernible] health obesity and app. trials program is where reading X we hypertension, for to diabetes, in excited forward to type in Phase plan this we're cardiometabolic trials. trial I'm a year, or out to

see in to up type to diabetes obese. studies X expect X in from and We data studies X

efficacy, generate an to is similar to an GLP-X, is goal but and safety injectable profile Our tolerability that single-acting medicine. orally available through of that

Phase to a expect X patients we which on ACHIEVE diabetes have X% diabetes. loss with increments is studies people of greater. body obesity AXc not trial III maximum or and index significantly of doses will prior a a utilizes study patients well in than have XX Orforglipron people be to I, first trial X week in Orforglipron hemoglobin The diabetes. living escalating with in read other to milligrams. mass XX with type and between be of XX-week who therapies, X These baseline Based as and as less X.X% out a weight GLP-X do dose The

anticipate tirzepatide for to read type people half and trials X submission in year, data QX of potential out for outcome occur SURPASS The indication We Orforglipron in are basis the regulatory our we to the III additional the [indiscernible] expect this the in ACHIEVE These XXXX. read up from will CBOT. in by diabetes in and expect of in first to obesity, Orforglipron study QX X Phase XXXX this trials submissions, second X late year, form cardiovascular will this followed also will treatment of a This obesity, with year. expected XXXX. trials we which out be of

dependent line accrual events. Of of course, the this anticipate data in time is the cardiovascular is an event-based trial, and QX. on We

cardiovascular both either reduces positive and While a superiority would outcome noninferiority the outcomes to tirzepatide to in and of compared labeled indication. demonstrate Trulicity, designed that measure would support the risk

retitrutide, positive weight data loss Late initial The GLP-X, tirzepatide this out our this from XX-week year, more study, benefits. additional incretin study We medicine which could a acting health deliver GIP we expect X and triple potentially with can Triumph to knee to see believe and in experience the glucagon. new the and is Physician body also in have mass first of greater. We'll potential even than provide read [indiscernible] combines and that of this patients MCL. year. multiple [indiscernible] therapy the lines will currently use feedback osteoarthritis hope with see of sets is or a index earlier additional XX very who data data indications, enable we on in broader generating CLL approved within

trials We this or could year. from settings see line data BTK naive first additional in the

Moving to neurodegeneration.

symptoms developing blood-based anetumab. watching risks event don't progression, X. TRAILBLAZER-ALZ we're of XXXX a is utilized disease have reduce in Alzheimer's the we While preclinical the screen treatment fixed to of key any listed [indiscernible], study, duration the moving patients of in disease earlier for closely trial a and This a goal with with diagnostic Alzheimer's By disease.

is target for biology events will of will accrued. the and The area number XXXX, the completion immunology. potential study in primary first applications current to new of progression read XXXX diseases out neuroscience the study when be focus across While are in new [indiscernible] projected

specific With studied. the biologic positioned expertise of to in space, and clinical [indiscernible] being properties match desired development deep of Lilly the the indications to pipeline well is molecules in scientific this

clinical high. clinical where include incretins of prepared assessing and based disorder, conviction brain trials trials move our several our start We neuropsychiatry be to use areas III inflammation. rapidly pain, that data in We'll Phase could plan is and into potential substance on to benefits health,

regulatory for will X XXXX, type multiple for and another including Tirzepatide detailed. I outcomes Lastly, year number Insulin R&D. obesity, important XXXX sets cardiovascular a alfa Lilly [indiscernible]. for in Orforglipron potential for diabetes, efsitora for as we submissions data expect of exciting be

for Now, some I'll remarks. turn the call Dave back to closing

David Ricks

Yes. Thanks, Dan.

Zepbound our per early guide had are account. We products IP we continues our EPS taking strong both incretin $X or into gaining charges launch and our of and and XXXX. We revenue a very grow believe throughout time QX still rapidly, share above share market financial cycle. $X in So of market. R&D performance are finished guide Mounjaro to their billion first-time when The first in both and

immunology oncology, and new delivering strong medicines continue our revenue progress, and therapeutic addition, launching growth. In neuroscience areas to

exciting indications, exciting as pipeline growth and which We new and just several across in manufacturing capacities, have outlook financial expected opportunities have significant highlighted, an for made well, all new advances XXXX XXXX. . We tailwinds new Dan in our access to XXXX markets are our readouts, throughout new performance.

Mike the So now me moderate Q&A our session. turn to over to let call

Unknown Executive

Thanks, Dave. [Operator Instructions].

Operator

Anderson today from is first from of coming question Instructions] Bank Tim The [Operator America.

Timothy Anderson

the question guidance. a XXXX on Just guidance, the

everyone it or back as same viewed the of slides by scripts uptake trend can didn't one to I yet about prescription that I confirm? you but require get guidance just might you What math, acceleration concern that's well, needs some that's slope just a continue as occur. envelope that does shown the that way So hasn't XXXX line knows seems show it the and all your right think there doesn't suggest acceleration to the frankly it the been on like be can of trajectory change. And think of do

David Ricks

for to the talk Tim, guidance the to . assumptions. question. Great. Lucas about go We'll

Unknown Executive

basically in see Yes. we that We is continuation Tim XXXX. that prescription what seen expect in my the growth mentioned of we note to total a have

in that's to So the our XXXX the we market [indiscernible] built guidance what market.

Operator

Terence The Stanley. Flynn from next coming from question Morgan is

Terence Flynn

over then litigation year? that be the out that steps on course Zepbound maybe how should And failure was on? and the also we impact on next you this elaborate access expect for label? know the compounding I payer I on play focused year, for if OSA . anything filed of you've from to could expectations your particularly the just you and to the wondering heart dynamics

David Ricks

close then there, Dangerously comment compounding. X-part go to Terence. a about and to to Patrick a Dave make access I'll come about to We'll quick question to back talk

Patrik Jonsson

will we much. is it that also you medical a of north made to second Thank the coverage very reimburse to of remains they commercial that decision opportunity now, working recently and opt-in coverage by plans make OSA say XX% in step the have some of we When at plans for CMS in. half the Medicaid progress in confirmed Medicare today. employer And course, still. And were importance it's a in they are days commercial expect approval, with of us us we to signed gain space that remains we anticipate that XXX from second access, it access to decides would get segment. and XXXX, the D opportunity list or year. also an plan right in FDA the employer opt And an more of strong similarly, with look for to and get this states terms high the I and and

was Medicare and approved, Medicaid. rule access when have and similar opportunity, an expect to a particularly if We as in say, I

David Ricks

Yes.

our us clear. took I has since regarding the off been the think FDA compounding, August, and later pretty So supply We've position in QX. in been list formally

compounding that suit. delay that I've oppose We Of course, to suing the that. associations are joined

nonapproved need full form for coming this compounding a place have supply, and when FDA clear has February have think up think there's a next of said of kind illegitimate there's the one XX, because where we out been no product you along. reason I the to position day there. is our to don't We stop that's

of in governments and share case town, court So pending. course, new new

So all that. don't of know the outcome we

growing isn't in trends shouldn't said, and our just It's long great that all probably an year. see think can But practice that in unsafe QX, mean, is this that innovators. business we exist for nicely in term, prescription I early I

that's on decide to like this what government hope the the from courts do. we'd to So and move and

Operator

Courtney The from next Bernstein. question Breen is coming from

Courtney Breen

anticipated and made population I point to to a potential loss. you just -- in of the of GLP-X bit weight diabetes chance guiding context you zoom particularly specifically, Can their you're just Orforglipron to efficacy of to? I that about and that positioning, make talk wanted in of about and a think the diabetes took kind more single kind kind little injectable the

David Ricks

We'll Great. go right the to Courtney. Dan Thanks, talk to about for comp Orforglipron.

Daniel Skovronsky

talk maybe market Yes, start sure. the can positioning Patrick efficacy the on and expectations here. then about I'll

benefits So mention Still, single has -- Tirzepatide, but you're dual-acting a the which a patients. take we not to monotherapy as GLP-X, with of to that tolerability and is pains because we expecting that agent. GLP-X with right, actually efficacy you see many important it's kinds know, we're or provided

there. quite type where our without a so losses typically diabetes. This bit And first weight X noted, I people patients you in we're is study see lower as than is X a diabetes setting sights in type

with see the soon we'll efficacy excited it. So we in the Ozempic Patrick? past we've that of data get sort seen on index and to that and

Patrik Jonsson

or HbAXc need scale an opportunity a outside the loss idea have ratio. positioning need as with we [indiscernible] a have also as we tirzepatide be and last opportunity to that it's maintenance amount actually that generates. oral a a to patients efficacy. needle GLP-X from there base U.S. big group At necessarily for the into there don't and having well. in an And account the perspective, U.S. to doesn't be an is importantly, very But might portion markets XX% And taking in of weight reduction injectable an of XX% of the like patients that of fireside in

Operator

Chris Next question is JPMorgan. Schott coming from from

Christopher Schott

another question. Just Orforglipron

you You've elaborate type balance you of in now? guess, readouts particularly . Can the confidence gives a tolerability such there beyond of maybe those have of with I with now obesity asset diabetes the risk wide you the et kind you of hypertension a cetera? seen launched profiles in just wide confidence on drug's taking range to programs the think some just having titration, X [indiscernible] range a I'm more little studies. trying about studies, pretty and the bit initial the running initial how right what

David Ricks

question. to Chris. answer Thanks, that [indiscernible]

Daniel Skovronsky

smart a question. It's Chris. Thanks, Yes.

even risk trials molecule grow as we're drug into the I any we data think not the particularly biggest safety. Of trials with drug, small Orforglipron, the uninterrupted. though of is the course, proceed, more safety continue in going safety these a the as overall confident Phase seeing And profile such III because

Of course, that correct more molecule know day to each sure passes. and readout readouts, data then of want until we we get this more in grow as the data but that subsequent it's we confident and for first success

for and specifics around the tolerability and titration As discontinuation.

those into thinking. don't So really factor our

We haven't had a any those look at of things. for unblinded data

make can't yet. on we So assumptions that

Operator

The Citibank. next question be from will Meacham from Jeff .

Unknown Analyst

had on tipping CVOT in bigger it's I are like clear benefit if prevention on looking SURPASS if successful. diabetes a you point or is risk Medicare one support wasn't data there, settings the mean, Just even commercial broader tirzepatide kind excess, of benefit. more yet Would a for I these or be or but commercial have reimbursement to payers sure

David Ricks

Thanks, there. to the Jeff. landscape about go broad talk We'll to Patrick

Patrik Jonsson

very you Thank Jeff. much,

extension X increased I a obesity. opting at I But precedent prevention we there we changing and itself, indication. of type course, but for the are no one think as outcome with treatment provider agencies, with benefits defined employee level, really data game the in and is studies drive as and pre-diabetes definitely the will is of an regulatory seeing think to utilize people of discussions,

David Ricks

be last the But about more data affordability ex launched reimbursement what create constraints, I think grow it time. year. or some And we've broad really just think U.S. way of up And will that's accumulation will single that but we way, actually said times. will year think steadily we've the I I rather events U.S. you weight before, of the points make an over different looking and reimbursement, thought are sort then but compelling to we've several insurance reimbursement sets investors et some ever different payers that the moves, still trigger And not. different since commercial Jeff, at mentioned picking everything decisions of of which U.K. of will a lot even of now the broader Maybe for point, think and I don't a et cetera. seen with budget that cetera. during

That to the all of chronic precursor time the the data health not imagine medications so prevent many get hard coming and said, we beyond is end that. are obesity it's already, there'll by the be the economics And are conditions what to decade, we more using to diseases. pretty compelling to

bullish remain long really So term, to reimburse expect on we like whole medications. we being this all really, category reimbursed other

would global well that's say, for expectations a going as scale on you schedule more the slow I because and a as diversity payers. in the be model to of steady, U.S. Just and of

Operator

The Seamus will from next Securities. question Fernandez Guggenheim from be

Unknown Analyst

on P This for on Colleen margin is of sustainability wanted just Seamus. expansions. to We ask operating the

also Looking the balance of under at nearing view then the estimates we're seeing longer-term margins are some you Do Or consensus, forecasting from thinking sell-side decade. the of realistic? by end how as XX% the the you're and you ensuring this on between about not investigating the pipeline.

David Ricks

. to the long-term about Lucas operating Great. Thanks to philosophy. margin Go the question, Colleen. talk for

Unknown Executive

we manner. in believe basis with Thinking And continuation guidance and QX, we're that term, R&D our our in results order we points a we drive the a sustainable the the innovation seen provided very into drive view to XXXX. how XXX growth that for that That is and investing mentioned we've in I of expansion factor so, margin business. expansion, to XXXX. a that and growth are pleased Well, a business, into XXXX do for in we more long is continue particular critical in to success future in is

to that actually So good from way future. growth into not high XXs the is we believe a XX% before drive getting we that sustainable into or that perspective, that mentioned

-- and returns business that also we in seeing So that the we time, low now are we right generate the have terms what XXs basically of on in well. balance investment as particular the at this into that

Operator

from The next will Capital Markets. Seigerman from Evan be question BMO

Unknown Analyst

on This is for Evan. [indiscernible]

we've bit Given from those? your from a in the seen the you've in sort launch. as space, slower the about talk some of . can the you well Kisunla as then taken And peers maybe days launches lessons Alzheimer's early of experience

David Ricks

for about to Anne [indiscernible], Thanks, Kisunla. the go We'll to talk Great. question.

Anne White

are is we readiness still focused much about for growth. Well, -- with tell That's What significant system thanks in on opportunity is team question you, of space. pleased area really so Kisunla. far. our and the so system I'll our the our momentum And a

providers partnering reach and to more we're care health So with scale patients.

As so P&T XX% we're far we've key as how watching. over of our To it's far, date, key in approvals achieved that mentioned going accounts. indicators Lucas

those We an leading important have diagnostics And continue prescribers the indicator then be encouraging. also is over XXX and to front. results

true for [indiscernible] month each diagnostics I critically, the use readiness, significantly the capacity as in the and think systems is blood of year The than and challenge doubling last detect to and systems well. patients. more diagnose help the here grows most is

And solutions on of them the working to the patients, a that quickly treat with for and have well these we health to of capacity, series increase increase how help patients. as diagnose care providers educational that lot a so we're on number throughput

of Importantly, are And lot with The with that have actually these capacity help cleared dosing think helps stop ability the physicians to some enthusiasm about to we're I of these told hearing once-monthly constraints. those of in constraints. a capacity profile infusions, us the of going a Kisunla. all

been bring learning the now. to terms launch so far. lessons positive and to our customers. the So and a these that Lilly in field expertise able We there so went learn with doing collaboration we're level has that from with of relationships out But it's it's been far of our support what been in long a [indiscernible] strong and really start applying the first the

Operator

from Raffat be from Umer next question . Evercore. will The

Umer Raffat

just in what's It's is one may to in see trial. III being range certainly of with noticed past the Phase been behind initiated the plans, not has few trials I'm trial months. thought outcomes the that? or process be not there's initiated Orfaglipron new the curious But which in an I particular, very encouraging

David Ricks

to development plan. We'll [indiscernible] Umer, Thanks, for Great. about to the go Dan the talk question.

Daniel Skovronsky

Yes. Thanks, Umer.

world and of more to that think of maintaining Of may course, in use difficult U.S. we medication in around we're to exploring broad idea. and The broad Outcome has being and more placebo certainly the indications trying future. with an on kinds idea challenges an advantages interesting is here cover But oral kinds applications do to thinking primary in landscape the of more of come be an setting those the we're here a prioritized. fit patients sort that it's studies get care the would important

Operator

Scala question Steve from next from The Cowen. will TD be

Steve Scala

and question, cadence the data but consistent of are been of apologize I year to in prescription guiding. instituting U.S. news, and Lilly despite points launching fluctuations market. markets obesity none months, the advance and has a meeting DTC demand for Lilly to despite the meet OUS addressable at past least questioning and X extending this early, meet struggling over accessible trends, a co-pay Lilly there cards struggling demand. of in significant size challenges stocking X include slowing to but which and demand

collectively, So taken points are these . concerning.

too been I demand, there not the Lilly think and has that size all will skis and any all build-out we that unprecedented market state be market of on aggressive? may to can say relate its our meeting simply you the that they whether this within the are but conversations you significantly questioning manufacturing over

Unknown Executive

apology for and that the for Dave Well, one. Steve, the thanks to question. I'll Great. go

David Ricks

with in sort year, of of a said is here is millions large can a last and felt to a have thing We with hundreds saw There's upfront, I prevent both know appreciate of on that what to loss, drugs. outcomes. into into I translates I think never early apology we so portion year, that, career, of put chronic been this also very disease large points seek very, and we unique globally days a obesity have most can with perspective from but back it that we I I've our weight are is believe people for of year, and last of projections we've And Steve, is everything call disease that not possibilities. on true, that. that's out you're it's range that proof that. market that asking always of Yes, had And it. the the in our And chronic there within think continue turbulence, that that we we half hit competitor that on my all opportunity. just we the but calling Lilly the confidence,

us. and when out, they very of people with year, we these We hear angry get which that love did taking You'll see we because know last more and that run drugs.

do I to X put have capacity And been have we demand. that represents sufficient CapEx not to in global building the to the so the who have doubt we so I Board, and decisions, far the personally that ground more is still meet

You'll that us. from hear about more

gating systems is highlighting think close of things, as is we're now, do the in and course, which different test right just still curve. can fast Of we as can up the an promotion pretty That's need I can think, well We're what building getting those and demand injectable don't scalable legitimately U.S. on it gaining the we'll in this confident close as is But you the right that that make X market sell. have to, to can call, we that. we're really supplying a thing. to we're a we facilities we way I'm although what now. and globally. launches And aren't what to valve we're question, oral that, relief idea match which more, And the edge a on

color hopefully, wouldn't according And you'll belief. we're gives mindset turbulence some But and us have. the we you that and term, see to So long the here. very act challenges that on prediction overread bullish

Operator

be Next question from Fargo. Wells will Bansal Mohit from

Mohit Bansal

apnea. And a I have sleep regarding question

hear Now that payers how the -- with that specialists so here. sleep pushback those is treated -- of apnea one gone on by specialists sleep prescribers shortage have patients we as the you often label, the there's general [indiscernible] have are and discussions as well these have far

about then So could points this? how you thinking you're talk about little a call the and bit

David Ricks

for so the to some sleep what We'll and prescribers like the on the experience the with are initial Great. apnea, Thanks, Mohit. far. go question of discussions Patrik

Patrik Jonsson

correct. apnea. area much, medical Thank There approach terms massive treatment providers health education. are a Yes, with approved of will in efforts we first as ever Mohit. for partnering our you sleep care any we on pharmacological that obstructive new approaching organizations, lot very you're and and disease side, advocacy lifting of It's a is

We expect our this sleep think well we are specialist to efforts go I beyond aim also large a them move population, the because to sleep specialists. regularly been patient But community. the And And of so is is course, but connecting a very starting account, remains this trainings, primary received but far. to meeting we the extent, with that's necessity with which the with undiagnosed. a speaker are

So primary required. for is be carrier to going

Operator

question from be Next Dave will Risinger from Leerink Partners.

David Risinger

asked. to So to and [indiscernible] related wanted candidate questions my incretin just been I long-acting the all-in pivot relax. have

trial mechanism, the the CKD color both the quarter, for . and so provide hoping but fourth relaxin company a diseases. and failure cardiopulmonary Dan, recently how development programs. now CKD could more And what action heart I'm canceled potential plus including it you into drove you the then on advanced other had long-acting in future some view the

David Ricks

to relaxing Great. talk the Thanks, Dave. We'll go Dan [indiscernible] about to program.

Daniel Skovronsky

was wish Thank an think, didn't II you. factors support I this I pregnancy. we're normal the Phase seeing these the for trial have mechanism, some where interesting in rather didn't of we mechanism, the validated during human molecule. know sort [indiscernible] than but the others speaking that molecule. read proceeding and with I as unfortunately, from results this that I to But disappointing it. with we trial success the by I results got is sure. But physiology

see. and have we'll to So wait

Operator

from The next Akash be from question Jefferies. will Tewari

Akash Tewari

to it will in that steady XXXX? put you'll mentioned So negotiation improve improved a while on offset state at more under at pricing channel relatively the semaglutide stable IRA you access, adherence? until gets to be by give discounts Or Are discounts your implying be expect in GLP-X to is least JPMorgan, additional you reached team Lilly's XXXX. that

David Ricks

All Akash. talk Lucas We'll . go Thanks, right. trends. to about pricing to GLP-X

Unknown Executive

question. Thanks for the

alluded of into terms JPMorgan getting conference XXXX. In during pricing the the that I trends and

that the had basically continuation First, a a in about and what in of uncover talk comparison. and of is the on mentioned XXXX that past period XXXX, the noise year-on-year QX created we basically quite [indiscernible] Remember into lot we we the trends.

talk by that's we alluded our single-digit continue same basically and the about that. There's So that erosion on XXXX. I into will trends, adjusting trends still pricing that

the you to I access side, terms some dynamics In your of don't Patrick, comment anything, on the want side. of know on if

Patrik Jonsson

and commercial for space on side, XX% the I think And over I've good [indiscernible]. really Part Mounjaro the we already covered have access commercial D. in

XXXX continue to access expect to in as improve We well.

to of on what Mounjaro in long that terms of based in need started upon partly And and Mounjaro here longer than be terms to a experienced the do dynamics experiences we I we adherence earlier, encouraged we we both supply expect see have. time patients are first market In think for due to with on in with adherence, we constraints. actually Trulicity setdown referred QX that But have we Dave to consumers see we that just the Ozempic. as adherence reflect this with XXXX,

Operator

from be Next Research. will Alexandria Wolfe question from Hammond

Alexandria Hammond

associated to envision relationship partnership, step-down vials? how can the does And the And you follow-up, With a real help expected how Lilly this time? evolving? is opportunity frame shift over with that

David Ricks

go We'll to to and [indiscernible]. vials talk Alex. Patrick Thanks, Great. about [indiscernible]

Patrik Jonsson

are August, in with the far. Yes. We so with performance pleased back SafePay launched Lilly Direct the and late system we

new TRx set therapy terms the in In But digit. start, or down, still terms teens. low it's mid-single of of to low it's actually in

all. connecting the And with medicines. evitable patients authentic partnership platform The just the marketing really opportunity option the for financial at have it's the about self-pay good direct not partnership pharmacy. So start. a row is or purchase road It's a FDA-approved Lilly to very to using the software of

We ensure those will partnerships to with partners get additional the lean access that authentic along medicines. and into patients that lines to really want FDA-approved

Operator

be Shibutani next Goldman will Sachs. The from question from . Chris

Chris Shibutani

on was I Apologies, mute.

kind obesity? terms doing diabetes the you you So for in be full potential is a the that to patient one like with similar approval. programs expect saw tools We approach the versus you're be simultaneous or injectable Will should of Direct, business international. What launch? launch and channel we be also embedded assistance outset? Orfaglippron product implementation Can about versus bit before of those launch, the do Lilly a prepared the all certainly prioritized up timing U.S. for other, previously cadence should a assumption? the talk Orforglipron little manufacturing a stated at launch And then at of of it U.S. in that scale "new

David Ricks

about detailed to to bit [indiscernible] very the question. We'll the launch prep. go talk for Chris, a Dave Thanks,

David Hyman

Yes, of inside point. and product, access those some systems because with get look, goal cycle a different platforms very us. using are allowing have to to we outside here processing commercial the it's production all a at available for waiting but predictable, to It's and [indiscernible] the Okay, that it's company. long

match not out here So sets pharma do question of demand, we with as and supply launch about the things building all earlier for we are the pointing We in the to injectables plan and demand to for competitor. our gain the we normal these make flip maybe had that carefully a sure full have [indiscernible]. for

co-pay, full XXXX. globalization plan submit and seeing you're to early begin then that used launch of like to a to access do capacities in or And approvals activities building rapidly and primary care sampling, and as formulary that for and Orforglipron products So full including have will hopefully, sense, in launch we as possible. will we're

discussed these that I Dan in we the hope expect today. complete think indications for submission follow to that first then as other U.S. be diabetes package the question. mentioned, answers have the obesity, I and been shortly but will

Operator

next The Bank. from Deutsche James question will Shin be from

James Shin

titration one to schedule. how impact may loss, go Dan comments on the the you over efficacy appreciate schedule titration in indexing and weight the Orforglipron Can AXc this II and results Journal? [indiscernible] Orforglipron. safety Another Phase Phase published for I Newland earlier III Lancet on

David Ricks

talk to go Great. Thanks, Dan Jim, Orfo. for more to the question. about We'll

Daniel Skovronsky

titration had in good Yes. was gradual were And Phase when the a of III. the titration a tirzepatide James. in a transition It question, a similar faster from we going. to theme Phase trials reminiscent the II It's more

well Orforglipron, I kind say for of think mitigated in it us strategy outcomes that tolerability concerns. of tirzepatide. served hopeful is that the I'm case the in which same to

were longer read obtain sort seem longest So the that by and mitigated study expect still the this studies for to slower here. titration to able of just have studies, kind GI in the and we study to be known out first plateau side mechanism. In we class is that efficacy are significantly not that the of effects longer we the

So space [indiscernible]. for what hoping tolerability and we're that's efficacy similar better

Operator

UBS. Trung be . The from from will next question Huynh

Trung Huynh

overweight question with set knee Phase on first of there the have obesity We much the for diabetes, slides, you potential patients 'XX. similar readout noticed level on for So Retatrutide. a a so was III for Orfo event there. osteoarthritis the thank your study as in I a and in

in endpoints weight you of comp what Could be obesity unlike 'XX loss. diabetes? Orfo flagged one the in the studies for So that reasonable with priority is a

David Ricks

Thanks for go about talk the to Dan to questions, Trung. We'll [indiscernible].

Daniel Skovronsky

I'm question. Yes, you It's smart asked the glad question. a super

ours is XX-week are trial longer of We've that is maximal You're need other XX-week going ones. probably a that Most efficacy. trials. the trial. shorter than of the the noticing This before to any osteoarthritis to [indiscernible] is plus reach commented trials

know, different a a population [indiscernible], of the et more least dimuation from I [indiscernible] cetera. for for pure including osteoarthritis versus at and loss in obesity a of weight population even [indiscernible] male, by think OA also we obesity at female, reasons, analogy the BMI, that looked trials number efficacy terms studies, baseline there's that in of

we population, obesity for to take don't from think than how do should as the population you think achieved be what quite OA but should population. population general bit point a OA will I estimate better extrapolate a the a So I broader that. to We know out in the

Operator

from Truist Kripa Devarakonda from Securities. will The be next question

Unknown Analyst

showed year? data no weight [indiscernible] plane Nicole drug. incremental for This BMA benefit Kripa. see from Can on this we data some you do with preservation of [indiscernible] but some is The see And recent loss. still mass,

control but weight loss what incremental better you're expect that for? body you looking do composition? Is So, or weight

David Ricks

about we're to bit thinking talk the data. question. how go a for the Thanks about to Dan [indiscernible] We'll

Daniel Skovronsky

Yes. Thanks bimagrumab. for on good question

tirzepatide think as incremental or similar out, weight the thesis point with mass. lean combination been get here with But loss. loss we call that a could we you preservation perhaps in our weight I of what has

we're for lean weight preservation. some going incremental see to think to a really I going drugs, functional to to show to X see real we're need the need benefit or the mass combining either probably loss benefits to

signs any actually that on to just think way. previously we any mass tirzepatide know we own, see to my noted or don't how changes we've really in And lean adverse on knowledge don't any that lean that. understand on mass I its incretin are

different in hand, other be the positive ways. growing muscle On a could

question, realized study, it is So with do beginning we see come The we're Phase to, looking I for of your previous bimagrumab. didn't was the new II which which positive when completed. effects

We but we'll clear is year haven't assumption. a show been that safe exactly this data, on when

David Ricks

Great. Thank you, Dan.

one for time have we last think question. I

Operator

question Partners. final Dave be follow-up will from today The Risinger from Leerink a

David Risinger

I hoping the you could was just clarify comment earlier.

a I PBM think didn't there coming March. additional catch in comment coverage quite was that. about I

the color impact on some quantify opportunity following and that you If script potential just for could trends more provide the occurring?

Jacob Van Naarden

just that close. then and I'll me Let cover

do Ebglyss, for I PBM gets activating of very it raising already. cover to in excited which referred we cycle, and the X and new coverage us that to brand. [indiscernible] think, awareness full consumers expect about X is that Dave, and PBMs that was

David Ricks

So great.

in interest in Let's Eli dialing and of conclude for course, Thanks Company. everything it in, about call Lilly today's and there. earnings and, you're everyone,

follow you've If Please cover everyone, have we in enough things in great day. Q&A. Spar got the a that questions detail or didn't IR up follow-up today And with the team. Mike leads now.

Operator

And This today. gentlemen, through will replay you. does made for our for midnight. conference ladies running be available p.m. beginning X:XX conclude and Thank this today at conference XX March at

you by numbers participation. those and XXXXXX. at You are (XXX)XXX-XXXX. code dialers Again, the replay entering Thank with and (XXX)-XXX-XXXX call (XXX) any the code access can XXX-XXXX XXXXXX. (XXX) system the XXX-XXXX access time for International dialing may your access

now disconnect lines. your may You

Eli Lilly and (LLY) 6 Feb 252024 Q4 Earnings call transcript