Eli Lilly and (LLY) 8 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Lilly Q2 2023 Earnings Call. [Operator Instructions].

I would now like to turn the conference over to your host, Joe Fletcher, Senior Vice President of Investor Relations. Please go ahead.

Good morning. us Lilly joining XXXX Company's for Call. Earnings you for and Eli QX Thank Senior of Vice Fletcher, Joe I'm President Investor Relations. And Dave Ricks, Ashkenazi, today's call and on Dr. Anat Officer; Chief joining CEO; Financial Lilly's me Chair are Jonsson, Dan and Mason, Lilly Ilya Van President Diabetes; of Naarden, of Skovronsky, White, of Lilly Loxo International; Patrik of Neuroscience; Chief Lilly Officer; Yuffa, and Anne President Scientific at Immunology President Lilly President President U.S.A. of Jake Lilly Medical Lilly; and Mike and Springnether Mike Zierki Irons, Michaela by joined also Investor the team. Lauren Relations We're of

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

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

concerning and is and Forms information to XX-Q that our Exchange results filed and actual differ contained the with Commission. subsequent Additional X-K materially Securities could latest factors cause in Form XX-K

about and benefit the intended The products information of to not It's we is be decisions. sufficient community. the provide is and prescribing not pipeline for promotional our investment for

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

turn Dave. I'll over to the Now call

advanced In We Lilly's strong results. the quarter, pipeline, manufacturing R&D and momentum second financial our continued. delivered Joe. agenda progressed Thanks, ambitious our

an Mounjaro, driven revenue of and Jardiance. Verzenio Our growth saw business acceleration by

loss headwinds antibody period the in from strong As base growth continue recede, revenue of and COVID-XX we Alimta's exclusivity to expect do quarters ahead.

by clinical particularly III Alzheimer's medicines Lilly decline in slowed TRAILBLAZER-ALZ been our early years, In which recent in XX%. showed innovative of the we has the but line progress donanemab few shared of X results Phase substantial have noteworthy. made pipeline the in May, past months advancing treatment trial, top

the difficult, in Alzheimer's design the end study of III a this and reported represents only slowing disease-modifying percentage differences While greatest Phase II enrollment Phase in and date. replication treatment date, to any make to point to primary cognitive disease cross-trial criteria comparisons

new earlier of analysis, the greater in we ago of potential the which Conference including even Alzheimer's in disease. in JAMA, demonstrates in cognitive Association shared stages and the detailed Alzheimer's simultaneously weeks published results, the International at slowing Three Amsterdam patients

showed and scientific the ago, Phase weight tirzepatide III progress. SURMOUNT-X trials, and loss. perspectives results obesity sessions which intervention positive tirzepatide shared XX.X% R&D shared less intensive X participants SURMOUNT-X from weeks product top to data his ADA other following X we on share diabetes the At of areas line Phase on in and candidates: mean than will with orforglipron achieved we exciting pipeline lifestyle retatrutide. on Dan in these or update next-generation June, And up treatment, continued II and more

to Moving our results.

You can see on the far continued year. this our progress Slide deliverables so on X made strategic

Mounjaro, Baqsimi antibodies on Excluding XX% the which That leads by products July. in in in launched XX% sales sales category. QX Germany QX revenue which growth was and from revenue saw driven volume Jaypirca new its XXXX, our in and grew QX also in category of Omvoh, includes Volume now in growth. Japan from COVID-XX and first

growth. These of approximately growth through volume growth potential Lilly's strong coupled percentage new products, categories products In and this combined the points solidify contributed quarter second decade. with XX launches, year, upcoming of this products profile

several call. earnings QX had updates We've since pipeline important our

management. and management; readouts EMA for by and Regulatory the III for III the SURMOUNT-X top the to chronic traditional positive resubmission X positive line the the third our For results X following tirzepatide and and fourth from for with U.S. donanemab approval submission tirzepatide in in the studies in and trial; global FDA TRAILBLAZER-ALZ evaluating Phase of action regulatory Phase U.S. of EU for regulatory weight in the application mirikizumab, approval expected submissions year. weight of this end chronic

and Lilly's active Bio. with strategy. productive second in a quarter was exploration and in pleased therapeutic are past Versanis have our DICE in to companies companies commented quarter: different X to clinical-stage external on the development. is innovation acquire and We've second the fit each These agreements Therapeutics operate announced of business for also and The pursuit areas,

closed global financial our financial to also Baqsimi, end, into the rights to sale our is reflected financial of closed now After these this reflected of transaction results. XXXX the Both transactions and in be QX sale updated guidance. which incorporated portfolio, We the we our of in olanzapine our are quarter rights impact QX will results.

Research the in our ambitious has history share portfolio manufacturing at to our most of Park begun We We're commercial our continued to expansion Carolina. that production site in North happy incretin company. XXX progress Triangle support the agenda to

we capacity expansion near-term these we're the to also around patients provide paths Beyond to Anat efforts. more site, to on incretins this access ramp that expand other world. as at will detail our production the will come pursuing

important And today. regulatory, sharing we're see finally, you'll clinical list updates since X, we other billion dividends quarter. in several a including and distributed our call, key over this Slide On QX earnings $X of events

ado, Anat So this over to QX our without results. further share to I'll turn

Dave. XX% Thanks, non-GAAP of X comments XXXX. performance XXXX. performance. versus focus on quarter QX second my I'll QX, the In of financial summarizes Slide today in revenue increased

States, should This from and or the revenue was achieved headwinds occurred the COVID-XX acceleration lingering increased going from of on exclusivity antibodies in revenue from of Baqsimi first loss the period, United normalize XX% XX% which forward. the in on and last constant which currency despite half revenue in effects of a Excluding base Alimta's basis. growth year,

Baqsimi, early-stage and of in manufacturing XX.X%. of expenses research. investments was benefited increased percent offset administrative expenses revenue rights for expenses additional and by costs and was expansion. related to and with revenue expenses a indications. product Marketing, marketing investments Gross onetime R&D new operating increased launches this selling product as from expenses in upcoming driven quarter. margin expenses increased driven at higher assets and recent flat XX% by XX%, labor higher margin to Total increases XX%, our associated selling the late-stage and mix, including additional development capacity quarter in the in QX which in Gross by from sales

quarter, or Operating of million and with in This higher quarter the income $X.XX charges QX charges. or a reflected Baqsimi impact IPR&D approximately higher acquired $X.XX SG&A increased expenses. by IPR&D and for IPR&D EPS. points XX% of charges of of by XXXX, In basis $XX rights including sales associated and the offset recognized totaled a QX R&D was revenue, of revenue of Operating partially we for lower to $XXX percent as acquired attributable million IPR&D driven EPS. charges, acquired revenue XX% negative XXX income

by increase QX rights the bottom tax in of new in of of represents line, we inclusive for Our delivered EPS the regime per QX Baqsimi. XXXX, sales versus Baqsimi. rate of Puerto $X.XX At associated earnings $X.XX impact increase an for XXX the of the XXXX compared points a the the XX% in sales effective of Rico with rights QX, driven was of This to XX.X%. of basis same share tax period

Slide growth. X, volume on of and revenue On we quantify price, the effect rate

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the trends. consistent in price with decreased single U.S. prior net Mounjaro, by Excluding low digits,

in earnings in price year. the effect greater our we on I second even changes half access QX Mounjaro As an cards saving reported and of expect dynamics U.S. have this call, mentioned to

in with trajectory quarter. for growth QX Volume driven its Verzenio, increased Europe continued in X% by Jardiance second XX% primarily Taltz. Europe up in volume currency revenue constant and growth in the

lesser see continue in revenue For of launched currency X% increased by to April. Jardiance, extent, Mounjaro, led medicine, which newer we to and in constant Japan, a the robust in and as Japan Olumiant in our QX growth last Verzenio,

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potential care growth patients incretin remain have continues market. We revenue saw in we X% an decline to and volume including Trulicity we to years disruption held to and for communications Trulicity modest to not measures by dynamic that Trulicity professionals to taken to important volume affected offset markets, well by Trulicity on option existing erosion. price will to was come. be more by than In patients, initiate patients has performance Trulicity. as up a HCPs confident growing In continue health worldwide in QX, be minimize international

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we Looking rest continued forward in ongoing of prescription as the improvement well in growth to as expect access. year, the new-to-brand

for Carolina. RTP site We're our has at demand incretin. the North supply Lastly, pleased regarding in started and outlook production commercial that

and months Even due supply will quarters coming RTP, believe remain as we we demand. in ramp up tight capacity at to significant likely the

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a Slide billion we R&D $X.X invested our expenditures, of XXXX, On development capital combination of and provide future in on capital update X allocation. the business first months an through we XX, outlays. growth investments In

in share we addition, In to shareholders $X.X returned dividends billion repurchases. nearly and

our financial Slide XXXX X presents updated guidance.

revenue performance our to $X.X and rights range XXXX from as remainder business strong business by is billion the in and billion performance. reflects of rights sales sales development strong revenue the activities, Baqsimi, the to for billion for increasing we olanzapine, underlying $X.X $XX.X guidance the including of by a of are Baqsimi Approximately as our well portfolio Given the underlying of driven business this olanzapine increase billion. $XX.X while

to Our on based the impact minimis updated recent and listed FX rates updated spot are represents guidance. assumptions a de

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guidance rights of be Baqsimi. sales XX% $XXX in million our totaled We be and increased IPR&D that million have from reflecting to to tax between approximately effective have portfolio prior which been rate of our been Other have tax rate also now is $XXX charges guidance in from expense XXXX, and million $XXX to OID of up million. the expense. We've XX%, $XXX incorporated the in through to and of income XX%, QX the and olanzapine impact $X million range expected income, also for up estimated incurred updated.

changes, guidance per these raised be $X.XX. share range range to guidance $X.XX to in we our EPS the the now have raised of reported our full and $X.XX to to be year in EPS $X.XX on of non-GAAP Based

Now the Dan turn I our in progress call will R&D. over to highlight to

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Lilly As in productive therapeutic our see, was quarter important QX for progress can R&D of with each another areas. you

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

you, Thank Dan.

go me briefly in Before we quarter. Q&A, the our to sum let second progress up

revenue product recently acceleration launched saw growth an portfolio our of momentum. as quarter gathers This

and antibodies Verzenio by we COVID-XX grew XX% Excluding Baqsimi revenue, driven and Mounjaro, Jardiance.

future these of investment late-stage base growth also expect Notwithstanding will we in long-term quarter capabilities investments, see coming opportunity our grow The phase a to expense in more expansion. our development. rapidly in and saw medicines, significant manufacturing our the expansion, our early continuation for in in business revenue years than and margin in continue

near-term -- for positive also submission top program. traditional from positive the chronic approval meaningful weight We completion FDA EMA, submission X advances phase of tirzepatide positive in disclosures results, top data to of Phase trials alongside detailed more III and donanemab line achieved results in our line with the pipeline for the management, SURMOUNT and and

shared clinical orforglipron trials data We also assets. from both mid-stage III and X initiated for Phase trials for and retatrutide

we dividend. moves and $X mid-stage Lastly, we our the announced several and portfolio to development business bolster capabilities, our targeted intended via R&D and early- shareholders returned over billion to

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

callers We'd manner. conclude our like in timely many questions to a [Operator Instructions]. from call take possible as as Dave. Thanks, and

Paul, then provide Q&A caller. the please and the the first we're session, for ready instructions for

Instructions]. [Operator

today from question Louise The coming is first from Cantor. Chen

see help What the reimbursement about do you will drugs? the it you read-throughs morning. And do this out Novo ask for improve obesity/overweight to think that industry? wanted you came SELECT of Just kind for study

Mike to for that question the go news. We'll on Louis. recent Thanks, SELECT

assume Louise. call as Thanks, out with out would question we I trial we trial, a SELECT read The SELECT for starting on probably expected. that. thanks get and the the

medications whether I not. think for fence anti-obesity of class. on add should the who or It really any payers should access great medication results support the anti-obesity for are they the are

comorbidities heart of and type XX%. The health with importantly, health dyslipidemia in When billion people XXX in diabetes cost the massive, XX%, risk obesity-rated medical are conversation a think hypertension XXX%, weight trillion $XXX living obesity. the benefit by you by $X direct benefits indirect turn few, of complications. should by by over away the of X obesity-related look loss overall increases are it of costs from toward complications for cost, the disease I the U.S. overall, To XXX%, name there aesthetics in accounting of obesity coronary more annual and

X.X debate really provide drive tirzepatide's on overweight normal-weight XX% stakeholders to value individuals. the action health payers. moved loss, AOM greater to or to obesity for great with costs it global really potential weight be The over beyond should move need living class. With and health People than care the provide

tirzepatide's We clinical including to MMO plan trial. plan evidence real-world have OUTCOMES a our comprehensive demonstrate value, and

that the a tirzepatide/MMO can't people results results, with day This matter. study. SELECT to believe loss fantastic of for trial Based weight We living the is will obesity. on see wait we do additional

because most so. of I payers overnight SELECT I think adopt AOMs will think Now do trial? don't

said push are I to get who them long-term the fence, in this over. is for I goal on But important milestone broad access think, it an I those medications. a earlier, anti-obesity think as will

question Meacham coming Bank of from Geoff next from The is America.

I loss I year the if are to a but diabetes know regard we're get differences holidays obesity drug this there were a and just that I view question use. you The sure wanted of seeing point indications is, persistent at troughs? weight rates. after between , with wasn't of duration to into And

Thanks, rates of for question back Mounjaro. persistence Geoff. go on Mike to I'll that

X your we for question. diabetes. thanks Mounjaro type Geoff, only now, market Right Okay. for

had with What have we in the type X persistency are Mounjaro patients. experiences end-market type X that for have do good rates diabetes with know is real-world diabetes Mounjaro. people only living So that we

historically of the supply launch has is market. experienced the better than first in patients persistency X first to Trulicity the Mounjaro because savings and did diabetes outages, have which made phase like had diabetes compliance launch, at important we've the Trulicity, In best before type card spot

with have. people And when confident to the by who we're get management and for that be we product type the people excited FDA. approved diabetes that see for Mounjaro we're what will use experiences in if So living weight X

from Tim Research. Wolfe from coming is question Anderson next The

just that's our in benefits So will be that a to only And company the make time of every back to as held commonly the a is some But that the positive going view cardiovascular SELECT, they're drug quite category. results proven benefit. course, view have for to well. able claim Novo

advantage like big could that them commercial So Lilly's be coverage actually the things give to in actually that payer a detriment? would on marketplace

Mike for a on question, go to SELECT. Tim. Thanks, back that I'll follow-up

payers is What class, into a opt will No, case. particular be it's don't a question. that good the seen the I think not we've drug.

impact that a them I payer access. So don't will within differential think give

like care more any health individual I product. they see helps really it when one typically, class the think commercially, results professionals this, than

Kerry Holford next The is coming Berenberg. from from question

On guidance, please, on the OpEx.

QX. So clearly, in you more are SG&A least, to through on now than guiding market operating R&D this year. anticipated the higher at spend costs And

to So I'm versus changed interested just continue on what that, drivers learn has of the OpEx more about outlook record. raise to your you elaborate this that Can please? previous quarter through key to

question. commentary guide the on yes, for additional to Kerry, that Anat go with the context. Thanks, And OpEx and we'll

questions. the for Kerry, Thanks,

right, you're as as of investment raised, increases result are have primarily guidance have this launches SG&A SG&A we as yet The continued well the year. both R&D. So we a upcoming in

to As for opportunities patients make a behind divest the these excited efficiently Lilly. and we're we're and opportunities, seeing for reality them

and announced And new of say, One side, R&D Dan III. I And provided the investments making for success studies we're On X early-stage key mean III studies, would in to primarily great our broadening retatrutide of additional Phase studies new continued pipeline robust seeing in we've the we're the behind coupled seen you a outline progress that the and initiating is that. portfolio, pipeline. announcing increase. incretin our X investing there in our in orforglipron that with and really, both advancement. Phase we've drivers We're multiple of are

our program. III Phase enrollment currently seeing rates success for in continued our We're for also

R&D to And incorporated are half So going then that's well. the that second now run we've the in X continued business transactions, to announced, development be enroll rate. inbound our

the these year. drivers all are of combined increase this So the

very really investments a opportunity pipeline. tremendous successful So in continued they represent a for

The Chris is JPMorgan. from from Schott next coming question

Or expectations just the scripts the in assistance is the well June more you XQ the was patient to XXXX? XX to as that and I program on patient move given just the wondering, I just through seeing as to for you contributor then reflect guess, change And volumes year? Carolina ASP we're now XQ walk meaningful assistant as should specifically, North capacity we the through coming volumes expect and change a North facility do this from largely Mounjaro Can IQVIA program? Carolina online? be

multiple and to Was half, program the co-pay on But second at news, then questions move to let changes to Mike given RTP given the gross-to-net hand dynamics as in provide and to Mounjaro Mike? we volume the end Chris. June. the close also me expectations the there, over of

the the those June program XX. did in questions. of savings, Yes, the expire Chris, make change $XX thanks did end we at for

what the you'll So Mounjaro-pay the change. with post IQVIA TRxes XX% as quarter. And is longer our were those anything grew in of that you that who individuals they see plan very no saw We in quarter see that trends. we volume happy an were using in nearly with uncovered in

will as we capacity As on on then our that and help up, areas. up on mean, benefit we go from and ultimately, help build new -- North working ramps manufacturing supply. forward, a production see. we And is at more I inventories few any team see spot will some eliminate that that we'll Carolina and bringing outage that comes

be manufacturing of the do will capacity I we're In we'll and out because I to But see supply of quarters, Mounjaro still see. spot some next up, year. But ramps unprecedented demand, as on think in still the the short couple and [indiscernible]. we really end spot outages the tight term, months we through see seeing outages tightened ultimately expect we of that think the that

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

obesity I FDA was on could the potential if just a for the indication? brand thinking Mounjaro, perspective the wondering brand, any you're ahead potential on action of how for you split a about single or provide

multiple hand I'll versus single Mike, Terence. tirzepatide. brands on you to for Thanks, commentary over for that brand

all We're Yes. decision we'll announce alternatives, at Thanks for evaluating and the approval. question. our

UBS. next coming Colin Bristow The question from from is

terms And move commercial potentially forward the it in sort do in think online coming the related to positive the is likely of the sales quarter. in supply decision And potential pen heard what RTP. how delays foresee the is vials side? commentary RTP you or on just the to supply of 'XX? capping about multi-dose as and at regarding we I any 'XX, way the Congrats with

to to to supply about a bit dynamics I'm Colin. talk going Anat little hand the Thanks, the and near RTP term. in supply commercial

on with first the let me to just -- so your Colin, RTP. clarify of start end question

in So line line, expectations. commercial is with live purposes, producing on our and now it's and for RTP

proud point. no I'm work It's expected. to that progressing incredibly done are us of the have there delays. manufacturing the had this we So to team as get

alluded, Mike and mentioned multiple lines. capacity They'll online in coming that there in site more marketplace. We've increase site. a the into available gradually provide will past, As products the gradual out be of it's large with come a

I about capacity we suggest our look we and manufacturing agenda at back step think comprehensively and plans. As XXXX,

obviously It's number first side. we of the high just one interest and the proximal nature, out launched is because construction. RTP of So of one the sites that's that's under of have

gradually. strategy capacity. and expand the continue have externally to working -- half existing with progressing Carolina the rapidly supplement also terms capacity work in recall In and of sites. we in been partners our you in XXXX, first go internal then have CMOs an last second to production live North supplement foremost, site, North and again, we're our in We're working with to site parallel, in And we needed. to announced potentially that -- build And as which But second could Concord, with we've is, year. but of

there. towards supply of the relief to of the next from and continue end end or -- some see will grow then year of at we So

in you know, large capacity. well as Indiana. is adding in and as We're these this incretin -- not sites outside X for incretin, nodes X of And of also as only the Ireland are API capacity

both of portfolio set then Lilly. expanding the managing we're outside a So the portfolio, broadly capacity but networks and broad incretin broader of Lilly to support

of manufacturing that we're a set So towards. working complex nodes

And of both elsewhere gradual how additional to will launching supply Lilly in We'll as options on the RTP, guidance is already as in for -- The you provide well should But patients. which U.S. about production. in -- earlier, we'll these as think when we've within facilities presentation should the comment as with provide expect with manufacturing on as this start revenue. exists terms well. said, you should line capacity capacity meant specifically the example, CMOs. And additional XXXX is we for vial for, presentations what outside stated provide the I in increase internal

We We have construct don't facilities. those new to need ones.

early as with of that into end start year to So next us year. the option these the then provides as and with this going

question Steve Cowen. is coming from next from The Scala

How would viewed reduction MMO think SELECT's SURMOUNT the we win SELECT have population likely be given that but studied, MMO now the MACE a consider that in results? be should something half robust the we Lilly as Or about as powering SURMOUNT XX% won't of reduction? disappointing? MACE would

for Steve. that. Thanks, I'll to over Dan hand

There here. differences to. benefit, your we course, the for are important study. question Steve, alluding on a provocative Actually, Thanks, as important think, expect to show Yes. tirzepatide MMO very I several of you're

size though, they a which for opposite the part, run suggesting, most think for I potential direction SURMOUNT MMO. the larger for you're as would an indicate in even effect

monotherapy and overall. in that number on has difference with experiments confirm seen some tirzepatide a a most of GIP health benefits trials metabolic that that important on weight and as drug interesting different coagonist, The loss We've is Remember GIP GLP/GIP some well. the itself. and significant is very

So of given the that other should in the be on previous very the in lipid lower important profiles on the properties pressure, seen and effect trials, biomarkers out level blood we of this coming cardiovascular we've drug, indicate size large study. given given loss on effects weight of MMO the confident risk,

There the differences are population. in some

includes study and primary cardiovascular both risk population. Our secondary

MACE we have also the We end a different have secondary a point. point, as primary course, end although, of

Our X primary includes related risk. other to cardiovascular events

characteristics similar. Other than to many say of that, that I patient the quite going be would are

Our study And event-driven out. going earlier. as time is read much study, obviously an some to to it's take

but you it it sort and wait what also expect here, just understand a I considered see no reason be of we'll victory as today. and what were we're would anything I to data than comes think the think asking less about seeing and

is coming from question Umer Raffat Next Evercore. from

well that other is et above treatment-emergent as these GSS And case was on some mentioned disorders. enzymes, my question safety is, I liver like self-resolved? preclinical data Xx by your the driven the enzymes the slides to ad Or wanted and incretins. liver and is similar hoc it formation, cetera? opinion liver fact on to of in orforglipron above case safety as the specifically XXx zoom a know the hepatobiliary on I

orforglipron question I'll question. hand to the for Umer, for Dan over dynamics. liver Thanks, that on

the for thanks question. Yes,

from course, GLP-Xs. oral Pfizer Of following safety the for more X there's on of X attention their on been liver orforglipron announcement competitor

safety. at see looked we've that. course, we any carefully But So don't read-through of from liver very

patients And in in many level, That's the at know actually of function. population treatment see cause disease the is at in and you enzymes the if starting there's liver obese you liver characterized with that which averages, just an by you when from abnormalities. obesity a fat, improvement Maybe terms can publication of surprising. you not or high liver reverse look inflammation group excess orforglipron. can see supplementary on We in improvement liver an data that journal that,

normal couple again they What Of get people there the in patients liver out excursions liver liver keep levels liver in on possible could open a and you saw point when an consequences. surely therapy. one in maintaining go to patient, orforglipron with injury. come Phase III, in and that a fat But That's their drugs of drug, returned enzymes including off this a all across a cause course, higher eye was as see enzymes, excursion generally placebo safety up. of for trial think were on bit with liver -- not scattered that enzymes to we'll could we I that we while arms, pattern in

get new of all III where investors is frequently by safety place think caution our findings. on surprised really can that I molecules the you I Phase any

versus not watching or carefully. we'll This watching for years of be safety large, months, we'll and also should be concern say, monitoring numbers carefully. molecule. that many any we'll particularly that we're This adverse -- but first safety time the I to liver heightened many a large with closely, other it So many, patients is events new is exposing be

coming is from question Partners. David next from Leerink The Risinger

they loss on How if a please. Dan, weight-loss pound-for-pound for of orthogonal mechanism weight is question my the cardiovascular future are deliver about incretins you can even match thinking whether So basis? drugs outcomes

Dan?

think very benefits. Yes. Thanks, how into therapy course, understand cardiovascular David. biomarkers particularly a today. We incretin It's question, good from translate of we the

But be to of on be mechanisms those translatable biomarkers could some depending should other are, there those orthogonal still uncertainty. other mechanisms. Some how

David. particularly, that the is fat is think, I important therefore, in the I give to is provide get own each And cardiovascular its the for including, has that obviously, adverse -- health need mechanisms benefits incretin to itself, though, But stack to including to understanding, example, from obesity body, good which reversing across mechanisms, one so outcomes, in where orthogonal outcomes. data a when Recently, on One, should demonstrate that. virtual cardiovascular will adverse incretin Thanks, focus additional that could deposited on trough. case could been read-through mechanisms. therapy our benefits we of top fat, there contributes think, be particularly

The next question from is Goldman coming from Shibutani Sachs. Chris

bit a get to Trulicity seeing about can the revenue you little Just talk dynamics there? particular, for then trying a you dynamic. you're and supply the and Mounjaro, the are In switching? sense how seeing

Mounjaro, Mike to Mike? or and hand I'll observations and Trulicity switching about have. we talk Chris. dynamics Thanks, any to over

Obviously, any to we've converted in seen we've at on taken it's coming launch. how Trulicity trend question. Mounjaro. We've over on what seen patients XX% and the Mounjaro good is to No, Trulicity. to being much come of haven't a about breaks XX% Really from Yes. of something look seen since

we've seen XX%. revenue grow from over that changes entire at launch. the Overall, and Lilly no is QX franchise, goal what did our by So really to in growing by incretin well we

it excited are with incretin Lilly we're where further and we're So our come. pipeline, pleased at the with quarters to in portfolio, -- our grow to

from question Mohit next from Bansal is Wells The Fargo. coming

from one everything a Lilly have that Congrats. comment associate and else. for have two for Mounjaro and comment to one a needs calls, question, an I a

the is think about we here? past, I likely and eventual how combined? that Trulicity spur think should long-term Trulicity would CV success So question Mounjaro we eventually, now in you know about the trial is but how of of the -- basically, supply should the my more talked of double demand about question supply

about a advisement. under It's I'll manufacturing dynamics to more and question on To long-term hand fair your Anat Thanks, point. comment Mohit. talk supply, maybe bit We'll to take back plans. a little your

Yes.

portfolio. I seeing the few I going our I our to outlined across Mohit, the of footprint earlier. a be said would So things in are manufacturing echo expansion we

to just to incretin not portfolio. and support site both for certainly large We did from to RTP both where of Concord, incretin our But the we online by in not sites. North -- provide the RTP capacity were expect said double the specific quantities, portfolio. end it's year. we They're So that but with we the support year, once last Carolina the they're comes

use point. that reference as a just So kind of

Trulicity utilize the as -- know and auto-injector. both are Mounjaro you same

to platform. manage on across same we cetera. et market production are based product on produce the which or allows us run they where demand, want these a to And plans interchangeable, sites need or lines our So

expanding incretin our we're as to So partners be external footprint leverage the that to going to support internal capacity. well portfolio supplement continue to as

is coming question BMO. Seigerman next The from from Evan

shake it going little I'm up ask donanemab a bit. to to one on

full that FDA the in does any following that you there that we needed for agency nuances based this Or donanemab So the have saw the with to approval, submitting discuss everything CRL are last month? earlier year? they need on data

did donanemab. So was submitted wanting much which review. approval just on really just submission, exposure. accelerated to question we memory, We receive CRL the for based And a more on have designated a priority Evan's refresh as

request. So it's simple a pretty

others. the on all and those And FDA Our aspects good going to the resubmission which the of TRAILBLAZER-ALZ preclinical III had Phase submission, chance think fulfilled review the CRL. X, the the accelerated I news, the with manufacturing expectations through any of certainly study, approval,

it point say traditional approval. of accepted about I feel So for we And would quality submission. at this the that. they've They're confident pretty reviewing our

as we end said, of by the action So the we've expect year.

is Securities. question coming from Truist next Robyn Karnauskas from The

big-picture have question. guess a I I

approval payer from Mounjaro. right in for you're discussions weight loss now So ahead of

what give payers cadence on see? shift to are those to like what and you expect that that they as need X see us fence, you not For not really years? the the in of Can to looks need versus to sense supply cover, they access a willing of what do

kind Mike, hand longer Mike. the some what term want more to reticent, to question of of that like discussions is eventually payer those are you sounds It payers. Thanks, move these and over Robyn. comment? do I'll more around maybe for might

Yes.

regards of to mean, real-world I what payers we evidence cost medical offset in decisions, clinical of our long-term cost to to out. pipeline first have tirzepatide. that and our play and billions will offer build payers We're couple dynamics a a savings. obesity clinical show evidence there's with think who We're can literally confident need of to patients support and will in all, doing see modeling that we're and medical dollars payers' I tirzepatide that. spending with

be piece And will important so that an it. of I think

play dynamic a other analysis role. But think we is lot the think the I clinical focus a of that times, is on the there things I story. economic beyond will

you people live If with XX% obesity, Sadly, while at discuss reductions, mental, the really XX% well-being. live data, we go emotional reduced people personal their a with goal. experience experience health top physical when who is improving obesity and look functioning with

the improve people in meaningfully mental of And obesity. emotional clinical improvements significant clear lives well-being SURMOUNT-X showed physical, that that had can tirzepatide tirzepatide we testimonies SURMOUNT it's using our in the the Patients and with trial. in from patient trials

payer this state interest see for with their be driven loud going massive think and medications The be live debate. big or a people really should powerful whether that of be a we obesity with in is in desire fundamental voice employer by People living to obesity or improve that's government. have an to I the And component health. federal obesity decisions, that

to data, going see on build data like you're going to continuing like to is for the or these. time, think clinical case see I economic other trials, data you're so over what the side And SELECT MMO

see well I time, across life, as will both a hope to build want who for the While the demanding better access people of as living globally. you're these access over for U.S. with voice the to going be obesity more And think who we'll really agents. continue future,

Citi. next The from Baum Andrew is from coming question

[indiscernible] non-Mounjaro assuming Dupixent need differentiation, I'm dermatitis. to a you from tapping similar atopic about displace Wegovy A relatively launch? Dupixent, population. non-donanemab the that obvious access, about question [indiscernible], with be clinical or launch coming to $X formulary large launch the could U.S. the lebrikizumab, or high-deductible and patient When up. thinking you're billion thing of given Mounjaro in the and are in similar the very therefore, how bridge would thinking the to to about estimate you secure to there's the We of adults program on order into very, comment some to just little

thoughts here, Just please. your interested in

hand we're I'll on of Patrik, Patrik? set. President question weigh the thinking and diversifying for Lilly Immunology, how Andrew, lebrikizumab over about in Thanks, positioning. to to

Thank on lebrikizumab. you very much for the question

it data skin having it's realized clearance XX. the Now we're head-to-head, encouraged at by more seen, week to first-line believe we biologic We that extremely and XX% frequent upon the has patients based at that have we achieving we are dosing of data, than actually maintaining really a Dupixent. not week maintenance positioned XX but less launch than a

So that's with potency. rate cytokine differentiator big relevant most a slow the a high targeting IL-XX dermatitis, being for and atopic and

atopic know forward market perspective, growing payers to here. From access dermatitis we we an we see have options are And that looking significantly.

for here, enable we discussions willing our on and differentiation So to enter marketplace into portfolio And our strong in rapid course, we value the footprint capitalize to strategy believing will but we the are in the focus we dermatology on atopic it with a have of And PBMs immunology. what the medicine dermatitis. of are brings and to have currently lebrikizumab. and access can entirely

from coming is from Carter question next Gould Barclays. The

sort I in your year. plans time, of to appreciate those about, At the all start you same those the sites Anat, were the lot talked on of manufacturing side. a the color

question side? expected derisking move build-out manufacturing on So your Phase I really the as incretin the think peptide changed of orforglipron, has sort that my the III, needs any we in to longer-term the sort of your of and for guess is, about way side of

question. Great Thanks, Carter.

think this one. I jump in wants Dave maybe on to

started I the to I'll this we'll we launching over is new the first that year, space. we these all, the about into auto-injector in. important jump this think parenteral in talking now that are It's next know today, change just constraint year. for beginning which year be where one Sure. Yes. as there the even long people presentations term, of is we're versus we mean, experience about

So top of well which to certainly insulin that, move North we'll and multi-dose tirzepatide the to high-volume for outside available, of just sort to we're and for we make is that's capacity. degree redeveloping internal pen other able vial, systems had previously, of more developed That's site quite the be we at using on-schedule accessible or our expansion an clear. nodes the RTP as in planned on of than Carolina be other as currently

Mounjaro. good I news So that's for think

I'm that the be sure. here, so for will enough questions not to said, prior all meet That demand?

So like And more. volume right, while news, into the up opportunity. moving is the the we today's need only does will expand

that you're globe using demand complications out oral other and treatment molecules, that to there's a because bit in role that. particular, of in global big around could a for point and it's for completely orforglipron solid, in obesity quite technology So the different a meeting related all in it's right play the capacity

is using processes a to It's the us Orforglipron many it molecule complicated But and than steps. we're make. assets got puts current in using. set a ones different of

global availability term. over and for important an program, access long the So that's particularly

million we believe. were WHO the conditions there'll treating well, XX obesity people incretins. X with as people X remember to years XXXX, estimating And ago, probably with by be Just and I globally related billion is

So like things for need in way from away the meet needs all that. orforglipron world. long to the getting us to all way work a patients We to the of the

from is from Credit Trung Suisse. The coming Huynh next question

Just one on IRA.

of a it $XX,XXX more that products and priced above going be we meaningful year. 'XX, for to GLP-X drugs starts there's portfolio, one -- year, calculations, implemented Part D under is a the negative the in On So think in changes 'XX. impacting the been should a redesign in components $XX,XXX that's but your part then like our benefit some

few earnings portfolio your that see products impacting have next of mix the how you points, in directionally, different you do various given in So at years? the price

going I'm hand Anat for that Trung. -- IRA that to for to on comment impacts. the and Thanks, response potential

Yes.

the -- But coverage impact you based quickly D on at removing dollar mention if going Part varying degrees they necessarily referring you're I we catastrophic rather, So is. right, to of redesign the phase. there on be the how gap, I the look move were think amount products associated through what but wouldn't I'll with also to negotiation. are the

give from to just So an example Lilly.

is the to an very an with probably associated you're XX% XX% participation there to catastrophic about XX% the thinking cost If the patients get phase then the in additional quickly, moving the oncology phase and product catastrophic from gap where that previous us coverage initial for in phase.

For other opposite. indications, it might be the

a for So the these we're given also but and should now which better there. limit patients, adherence. a medication that kind the have then about to they drive, fact of important out-of-pocket of are outcomes But think there patients that as counter, hopefully, get about to adherence going compliance when pharmacy obviously, medications, health to improve is mix should that to thinking

be of that and part pushes IRA. So pulls there's of going some to the

year. is would the that one negotiation significant be that, this in and to the that XXXX to I products XXXX part as we more that's of going come of have The later announced so-called to refer cohort with first

have as drugs price arrive that going be in are I discounts is going at government the the terms quite that could a negotiated to of to the that of part meaningful process. that on impact think

The last is Holford from Berenberg. Kerry follow-up from question a

Just a quick Verzenio. on one

drug from thinking setting. tender ASCO, can Just how of And hear interested the data we've interested breast just into now whether now in are seen coming see that space? NATALEE cancer a at proportion use by to given those about to the represented early competition sales Kisqali you're you

to right, All I'm Jake? Jake last the over for and Kerry. on hand metastatic that versus Thanks, on commentary going NATALEE. proportion Verzenio and question to in some breast sales early maybe of

for Yes. the Thanks question.

account sales is indicator, course, patients of we're into answer what I'll of of of new NBRx. number the proportion or sort between TRx So in that it, therapy. lagging call a XX% iterations metastatic. really versus of around and cancer week-to-week, takes on about, is month-to-month. are of side prescriptions early NBRx bounces XX% the breast And on seeing that But obviously, sort

So expected. we less more or that's in with what line

happening what's there. So that's

the patients the if we've to with with notwithstanding, relative you ASCO, justify we've On anything, surprising additional really cross-trial us, the to seen is see to a larger year marginally which we've setting, not Kisqali size see X-year that Verzenio. the I X-year now a take the of the to offered effect therapy from as opinion you Obviously, the we NATALEE what what the Verzenio giving comparisons well that node-negative at indication. way, NATALEE when are We our Kisqali in lower both and really part larger study competitive patients. high-risk data the step and think obviously, leaders, a heard adjuvant from dynamics risk is those of X-year this regimen were don't study patients in frankly, population. patients, patients regimen as The our at thought of just back, studied sort not by didn't regimen

want the our beneficial there, it to that's think extent business. those patients, could I Kisqali that folks really I for can't use not Maybe to be really say.

surprising other the prepared two of past, the the perhaps I on Dan course, of in and think the there's of things been tolerability that saw remarks, with is that a data in high somewhat of this talk for differences ASCO the mentioned about thing, I with agents. toxicity And think these lot in many discontinuations the patients still therapy. of Kisqali, the was especially we one at in rate of the

number, of with more follow-up. up go will So course, that

what are, not dose different think tolerability actually of effects overall be that efficacy. with true profiles. drugs, And reductions adverse can given importantly, profiles It's clear they for side Verzenio is the similar in without I these tolerability have the same have actually while tolerance the X managed Kisqali they terms the somewhat So events. sacrificing of nature those

Verzenio to So in offer and by continue its with in about -- feel patients talks we prescribing to competitive can really validated been marketplace, and physicians. what the that's good profile

sure them. we there and benefit out patients medicine just for to the feel from make So it's that that continue can the who know got to good, we all

Thanks, Jake. Dave?

up dialing if in Great. your we in. forward IR have for very half again of on with year great have team Have for second today's the the Well, And always, first we you been follow as appreciate a not the earnings today's continuing and addressed half. Lilly, our company. It's your productive participation to into interest questions Thanks in look we a momentum call and call. the please day.

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

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

for participation. you Thank your

may your You lines. disconnect now