Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you elaborate more on the capacity dynamics that are leading to the guidance raise today? Is this more U.S. or international?
A: Anat Ashkenazi, Eli Lilly and Company - Executive VP & CFO, explained that the guidance raise is due to increased visibility and confidence in their capacity ramp-up across global sites, including the approval of the KwikPen in Europe which came slightly ahead of expectations. This is part of a broader effort involving multiple sites and partners globally.
Q: Regarding the pricing trend, it seems there was a bit of adverse relationship in pricing versus the fourth quarter. Can you comment on that?
A: Patrik Jonsson, Eli Lilly and Company - EVP, Chief Customer Officer, President of Lilly Diabetes & Obesity and President Lilly USA, noted that the Q4 adjustment for Mounjaro was significant and a one-time adjustment. He mentioned that typical pricing headwinds for Mounjaro are expected from the second half of 2024.
Q: Will tirzepatide be considered differently than a "weight loss drug" to secure Part D reimbursement, especially with new indications like sleep apnea?
A: Patrik Jonsson responded that with the new data on obstructive sleep apnea, they expect it to be reimbursed in Medicare Part D. They are also optimistic about reimbursement for other comorbidities pending positive outcomes and approvals.
Q: How are you assessing the Phase II SURMOUNT data in NASH for tirzepatide, and what are the opportunities for tirzepatide in this setting?
A: Daniel M. Skovronsky, Eli Lilly and Company - EVP, Chief Scientific Officer and President of Lilly Research Laboratories & Lilly immunology, mentioned that the Phase II trial data are promising and discussions with the FDA will determine the best path forward. He highlighted the potential of tirzepatide to significantly impact the disease.
Q: Can you discuss the scalability of orforglipron manufacturing and your ability to meet global demand post-launch?
A: David A. Ricks, Eli Lilly and Company - Chairman, CEO & President, assured that despite the complexity of orforglipron manufacturing, Lilly has the capability and is confident in meeting the production demands. He emphasized the existing global capacity for API production and dry product finish.
Q: How do you see the supply and demand dynamics evolving, especially with the guidance lift and maintaining 1.5x saleable doses?
A: Anat Ashkenazi clarified that the 1.5x saleable doses refer to the second half of this year compared to last year, and their confidence in meeting these projections has increased. However, she noted that demand continues to outpace even the increased supply projections.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
