1 00:00:02,520 --> 00:00:07,320 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,920 --> 00:00:11,560 Speaker 2: We release our guide for twenty twenty six. Twenty five 3 00:00:11,600 --> 00:00:14,840 Speaker 2: percent is the midpoint of the growth that we expect 4 00:00:14,840 --> 00:00:18,040 Speaker 2: to see in twenty twenty six is industry leading growth, 5 00:00:18,239 --> 00:00:20,720 Speaker 2: and that's a continuation of the momentum that we see 6 00:00:20,720 --> 00:00:23,480 Speaker 2: as well in twenty twenty five. By the way, thinking 7 00:00:23,480 --> 00:00:26,840 Speaker 2: about the Q four that we also release, the revenue 8 00:00:27,040 --> 00:00:29,600 Speaker 2: that we deliver in the fourth quarter, we deliver forty 9 00:00:29,680 --> 00:00:32,760 Speaker 2: three percent growth, so it's a continuation of that strong 10 00:00:32,760 --> 00:00:36,080 Speaker 2: momentum getting into twenty twenty six. What is driving that 11 00:00:36,280 --> 00:00:39,320 Speaker 2: is the similar drivers, the key growth products that we have. 12 00:00:39,600 --> 00:00:42,280 Speaker 2: Of course, the Increding is getting all the attention, but 13 00:00:42,400 --> 00:00:45,080 Speaker 2: we have a breadth of our portfolio across all over 14 00:00:45,200 --> 00:00:48,480 Speaker 2: therapeutic areas that will continue to drive that growth into 15 00:00:48,479 --> 00:00:52,960 Speaker 2: twenty twenty six. Thinking about the drivers that you mentioned, 16 00:00:53,280 --> 00:00:56,200 Speaker 2: we talk about the Increding portfolio both in the US 17 00:00:56,280 --> 00:00:58,760 Speaker 2: and or US. You see that the market in the 18 00:00:58,760 --> 00:01:02,960 Speaker 2: fourth quarter on the antiobesity space grew eighty five percent, 19 00:01:03,440 --> 00:01:06,200 Speaker 2: and we actually outpaced that growth in the fourth quarter, 20 00:01:06,480 --> 00:01:08,839 Speaker 2: and very strong growth as well in type two diabetes 21 00:01:08,880 --> 00:01:11,880 Speaker 2: seventeen percent. So we continue to drive that growth into 22 00:01:11,880 --> 00:01:14,880 Speaker 2: twenty twenty six. You mentioned as well the introduction of 23 00:01:14,880 --> 00:01:18,440 Speaker 2: our four ripon. Very excited. We submitted for regulatory approval 24 00:01:18,760 --> 00:01:21,640 Speaker 2: in the fourth quarter and we expect to have regulatory 25 00:01:21,640 --> 00:01:24,640 Speaker 2: reaction as early as Q two, so we expect to 26 00:01:24,640 --> 00:01:28,000 Speaker 2: see as well our oral pill coming into the market, 27 00:01:28,080 --> 00:01:31,640 Speaker 2: a very exciting opportunity to expand the market. In addition 28 00:01:31,680 --> 00:01:34,640 Speaker 2: to that, we are expanding through access as well with 29 00:01:34,800 --> 00:01:37,800 Speaker 2: the agreement that we have with signing with the administration 30 00:01:38,280 --> 00:01:42,559 Speaker 2: in Medicare that we expect not later than July, will 31 00:01:42,600 --> 00:01:46,199 Speaker 2: provide access to Medicare patients more than forty million patients 32 00:01:46,240 --> 00:01:50,200 Speaker 2: that could benefit to have access to antiobesity medications as well. 33 00:01:50,520 --> 00:01:53,800 Speaker 2: So very exciting time, very exciting opportunity ahead of us. 34 00:01:54,000 --> 00:01:56,560 Speaker 1: So, Lucas, there's a lot to dig into there, and 35 00:01:56,800 --> 00:01:59,480 Speaker 1: you mentioned, of course the breath of your portfolio, but 36 00:01:59,520 --> 00:02:02,720 Speaker 1: investors really really care about the pill at this moment, 37 00:02:02,720 --> 00:02:04,800 Speaker 1: so I have to ask a little bit more about that. 38 00:02:04,920 --> 00:02:07,960 Speaker 1: You mentioned that potential two Q launch. Is there a 39 00:02:08,040 --> 00:02:11,200 Speaker 1: possibility that this outlook that you gave this morning gets 40 00:02:11,320 --> 00:02:13,920 Speaker 1: upgraded as we start to see some of the uptake there. 41 00:02:16,440 --> 00:02:19,799 Speaker 2: Yeah, it's early days at this time, we just put 42 00:02:19,800 --> 00:02:22,200 Speaker 2: the guide out there. We have a very thorough process, 43 00:02:22,200 --> 00:02:24,240 Speaker 2: and we feel good about the guy that we have 44 00:02:24,400 --> 00:02:27,760 Speaker 2: in place for twenty twenty six is still very compelling. 45 00:02:27,800 --> 00:02:30,200 Speaker 2: By the way, twenty five percent there is no single 46 00:02:30,240 --> 00:02:33,640 Speaker 2: pharmat company growing at this space, So we feel about good. 47 00:02:33,919 --> 00:02:36,040 Speaker 2: We can see throughout the year if we see that 48 00:02:36,120 --> 00:02:39,040 Speaker 2: continue to trend in the positive direction. But at this time, 49 00:02:39,360 --> 00:02:41,639 Speaker 2: given all the variables that we have, we feel good 50 00:02:41,680 --> 00:02:43,080 Speaker 2: about the guy that we have in place. 51 00:02:43,480 --> 00:02:45,920 Speaker 1: And so let's talk about the timeline a little bit 52 00:02:45,960 --> 00:02:48,359 Speaker 1: more here. You and I spoke a few weeks ago 53 00:02:48,400 --> 00:02:51,000 Speaker 1: at the JP Morgan Healthcare Conference. You said that you're 54 00:02:51,000 --> 00:02:54,440 Speaker 1: on track for that second quarter approval. You reiterated that 55 00:02:54,600 --> 00:02:58,720 Speaker 1: timeline today, of course, pending FDA approval. Let's talk a 56 00:02:58,760 --> 00:03:01,680 Speaker 1: little bit about the f There's been some challenges there. 57 00:03:01,720 --> 00:03:05,519 Speaker 1: There's been some turnover. Do you see that potentially impacting 58 00:03:05,560 --> 00:03:06,440 Speaker 1: the timeline and all. 59 00:03:09,240 --> 00:03:12,080 Speaker 2: At this time, we are engaging with the fdaight and 60 00:03:12,120 --> 00:03:15,280 Speaker 2: we feel good about the progress. And so the time 61 00:03:15,360 --> 00:03:18,320 Speaker 2: that I cover in JP Morgan that you alluded is 62 00:03:18,360 --> 00:03:21,440 Speaker 2: still consistent with our expectation that we expect to see 63 00:03:21,639 --> 00:03:23,799 Speaker 2: regulator reaction as early as Q two. 64 00:03:24,160 --> 00:03:26,600 Speaker 1: All right, well, we're almost in the second quarter, so 65 00:03:27,080 --> 00:03:29,079 Speaker 1: we'll keep looking for updates there. I want to talk 66 00:03:29,080 --> 00:03:31,920 Speaker 1: about pricing as well, because you take a look at 67 00:03:31,919 --> 00:03:35,160 Speaker 1: this headline, you see global pricing declines in the low 68 00:03:35,520 --> 00:03:38,160 Speaker 1: to mid teens. This caught my eye because of course 69 00:03:38,320 --> 00:03:41,040 Speaker 1: Novo Nordis came out with that early release yesterday and 70 00:03:41,080 --> 00:03:42,960 Speaker 1: then they said on their earnings call this morning that 71 00:03:42,960 --> 00:03:47,440 Speaker 1: they're facing unprecedented pricing pressure this year. So talk us 72 00:03:47,440 --> 00:03:49,760 Speaker 1: through that, what that means for Eli Lilly and how 73 00:03:49,800 --> 00:03:51,440 Speaker 1: you plan to make that up. 74 00:03:54,040 --> 00:03:57,920 Speaker 2: Yeah, well, actually the guy twenty five percent is encompassing 75 00:03:57,960 --> 00:04:01,360 Speaker 2: as well. The price step was set down that we 76 00:04:01,480 --> 00:04:04,520 Speaker 2: have in twenty twenty six, so that's included in our 77 00:04:04,640 --> 00:04:08,000 Speaker 2: guide for twenty twenty six. Already. When you think about 78 00:04:08,000 --> 00:04:10,720 Speaker 2: the variables, they are all actually out there. We talk 79 00:04:10,760 --> 00:04:15,120 Speaker 2: about the agreement with the administration, those prices are public. 80 00:04:15,440 --> 00:04:17,680 Speaker 2: We talk about direct to patients that we adjust the 81 00:04:17,720 --> 00:04:21,719 Speaker 2: price by fifty dollars across all our presentations. That's actually 82 00:04:21,760 --> 00:04:25,720 Speaker 2: already implemented in the marketplaces of last December. And then 83 00:04:25,760 --> 00:04:28,599 Speaker 2: we have the Medicare access that again we have a 84 00:04:28,640 --> 00:04:32,200 Speaker 2: price of two forty five. That's also public price public 85 00:04:32,240 --> 00:04:35,640 Speaker 2: information out there as well, So those variables are out there. 86 00:04:35,800 --> 00:04:38,200 Speaker 2: There is no news from my perspective in terms of 87 00:04:38,240 --> 00:04:41,200 Speaker 2: the pricing dynamics. Is still going to be a price 88 00:04:41,240 --> 00:04:45,279 Speaker 2: erosion versus last year. That's included in our guide. Very 89 00:04:45,440 --> 00:04:47,800 Speaker 2: strong volume growth that we expect to see that will 90 00:04:47,920 --> 00:04:50,479 Speaker 2: more than upset that to get to that twenty five 91 00:04:50,480 --> 00:04:52,160 Speaker 2: percent that we have in our guide. 92 00:04:52,360 --> 00:04:55,360 Speaker 1: Well, the dynamic is really interesting between pricing and volume. 93 00:04:55,400 --> 00:04:57,760 Speaker 1: Another line and you're earnings release that caught my eye 94 00:04:57,800 --> 00:05:00,440 Speaker 1: was that you take a look at US revenue increased 95 00:05:00,480 --> 00:05:03,800 Speaker 1: forty three percent. That was driven by a fifty percent 96 00:05:03,880 --> 00:05:06,520 Speaker 1: increase in volume, but it was partially offset by that 97 00:05:06,680 --> 00:05:10,840 Speaker 1: seven percent decrease due to those lower realized prices. So 98 00:05:11,040 --> 00:05:12,920 Speaker 1: is the hope that you know, you think about some 99 00:05:12,960 --> 00:05:14,760 Speaker 1: of the things in the pipeline, the pill being one 100 00:05:14,760 --> 00:05:16,440 Speaker 1: of them, is the hope that that's going to help 101 00:05:16,760 --> 00:05:20,240 Speaker 1: expand the market and thus expand volume as you see 102 00:05:20,279 --> 00:05:21,200 Speaker 1: that price erosion. 103 00:05:23,480 --> 00:05:27,159 Speaker 2: Yeah, that's very important. As you mentioned again, when you 104 00:05:27,160 --> 00:05:31,320 Speaker 2: think about the volume growth and the volume opportunity. In particular, 105 00:05:31,480 --> 00:05:35,080 Speaker 2: studying with both obesity and tie two diabetes, we have 106 00:05:35,120 --> 00:05:38,320 Speaker 2: a large opportunity. Both segments are really large, in particular 107 00:05:38,400 --> 00:05:41,520 Speaker 2: anti bysidium medications. You're talking about more than one hundred 108 00:05:41,600 --> 00:05:44,280 Speaker 2: million patients in the US that we can serve, and 109 00:05:44,320 --> 00:05:47,520 Speaker 2: then globally there is another nine hundred million patients that 110 00:05:47,560 --> 00:05:50,920 Speaker 2: we can serve as well. Nowadays we are serving low 111 00:05:50,960 --> 00:05:53,320 Speaker 2: single digits, so the penetration is low, so there is 112 00:05:53,360 --> 00:05:56,520 Speaker 2: a big opportunity to continue to drive that growth. The 113 00:05:56,560 --> 00:05:58,799 Speaker 2: fourth quarter, I mentioned that the market in the US 114 00:05:59,040 --> 00:06:02,680 Speaker 2: grew eighty five five percent, so there is a very 115 00:06:02,720 --> 00:06:05,360 Speaker 2: big runway to continue to drive growth into the future. 116 00:06:05,440 --> 00:06:08,359 Speaker 2: That that's reflected on our volume growth expectation for twenty 117 00:06:08,400 --> 00:06:08,920 Speaker 2: twenty six. 118 00:06:09,200 --> 00:06:10,960 Speaker 1: And you touched on this a little bit, Lucas, but 119 00:06:11,040 --> 00:06:12,760 Speaker 1: I do want to talk a little bit more about 120 00:06:12,920 --> 00:06:17,159 Speaker 1: MFN pricing there what would impact would you expect that 121 00:06:17,240 --> 00:06:19,280 Speaker 1: to have on your way laws sales this year? 122 00:06:22,040 --> 00:06:25,000 Speaker 2: So the impact is included in that guy that I 123 00:06:25,120 --> 00:06:28,120 Speaker 2: talk about again, the load to meetings in price erosion 124 00:06:29,320 --> 00:06:32,520 Speaker 2: that that's reflected in that price is in that price 125 00:06:32,640 --> 00:06:35,160 Speaker 2: a guy that we have for the year, and the prices, 126 00:06:35,160 --> 00:06:37,880 Speaker 2: as I mentioned, are public the two forty five for 127 00:06:38,120 --> 00:06:41,200 Speaker 2: the government segment and the public prices that we have 128 00:06:41,279 --> 00:06:44,040 Speaker 2: in direct to patients, including the adjustment that we did 129 00:06:44,080 --> 00:06:47,640 Speaker 2: for fifty dollars. So all these public prices, we have 130 00:06:47,720 --> 00:06:50,560 Speaker 2: been very disciplined on our pricing strategy. You can look 131 00:06:50,600 --> 00:06:53,479 Speaker 2: at the results quarter on quarter that we maintained that 132 00:06:53,520 --> 00:06:56,640 Speaker 2: discipline throughout twenty twenty five, and my covenment is to 133 00:06:56,680 --> 00:06:59,719 Speaker 2: maintain that price discipline getting into twenty twenty six as well. 134 00:07:00,040 --> 00:07:02,240 Speaker 1: All right, fair enough, and I do I should bring 135 00:07:02,320 --> 00:07:05,599 Speaker 1: up Medicare access as well, because expanding Medicare access that 136 00:07:05,680 --> 00:07:08,320 Speaker 1: is certainly top of mind for investors. And I'd love 137 00:07:08,320 --> 00:07:11,400 Speaker 1: to hear from your perspective, how do you see that 138 00:07:11,640 --> 00:07:14,880 Speaker 1: wider access impacting the market? And again when it comes 139 00:07:15,080 --> 00:07:17,840 Speaker 1: to the pill, would you expect that to be available 140 00:07:17,880 --> 00:07:19,320 Speaker 1: to Medicare patients at launch. 141 00:07:21,480 --> 00:07:24,160 Speaker 2: That's a great point of course, again not only to 142 00:07:24,320 --> 00:07:28,840 Speaker 2: repartite again set Bound, but also or Fotillipon will be 143 00:07:28,880 --> 00:07:32,080 Speaker 2: available in the Medicare segment once that access is provided, 144 00:07:32,960 --> 00:07:36,720 Speaker 2: so both molecules will have access to Medicare patients and 145 00:07:36,760 --> 00:07:39,520 Speaker 2: the patients will pay actually fifty dollars will be the 146 00:07:39,600 --> 00:07:42,640 Speaker 2: copy that the patients will be paying for both medicines, 147 00:07:43,480 --> 00:07:47,680 Speaker 2: So great opportunity to drive access. I mentioned forty million patients. 148 00:07:48,000 --> 00:07:51,880 Speaker 2: As always, penetrations will built over time, so studying off July, 149 00:07:52,040 --> 00:07:55,280 Speaker 2: hopefully we will see that penetration growing over time, so 150 00:07:55,360 --> 00:07:57,720 Speaker 2: that will build not only in twenty twenty six, but 151 00:07:57,720 --> 00:07:59,800 Speaker 2: also getting into twenty twenty seven as well. 152 00:08:00,160 --> 00:08:02,080 Speaker 1: And Lucas, before I let you go, one thing that 153 00:08:02,160 --> 00:08:04,600 Speaker 1: has changed since you and I spoke a couple of 154 00:08:04,600 --> 00:08:06,800 Speaker 1: weeks ago back in January is that your ZEP bound 155 00:08:06,840 --> 00:08:10,760 Speaker 1: QuickPen and actually one approval last month. As I understand it, 156 00:08:10,800 --> 00:08:13,000 Speaker 1: that product is tied to your deal that you have 157 00:08:13,440 --> 00:08:16,280 Speaker 1: with the Trump administration. So talk us through the role 158 00:08:16,320 --> 00:08:18,800 Speaker 1: out here. Do you plan to make QuickPen available to 159 00:08:18,920 --> 00:08:21,400 Speaker 1: all patients or would it only be an option for 160 00:08:21,440 --> 00:08:22,680 Speaker 1: those Medicare patients. 161 00:08:25,160 --> 00:08:28,320 Speaker 2: Yeah, it's great news. By the way, I'm glad that 162 00:08:28,360 --> 00:08:30,120 Speaker 2: you brought it up because you asked me about the 163 00:08:30,200 --> 00:08:33,319 Speaker 2: quick pen approval. And again it has been three weeks 164 00:08:33,320 --> 00:08:35,199 Speaker 2: and now we have the quick pen approval and we're 165 00:08:35,200 --> 00:08:37,200 Speaker 2: planning to bring it to the market within the next 166 00:08:37,240 --> 00:08:41,040 Speaker 2: thirty days, so that will bring another option. Of course, 167 00:08:41,080 --> 00:08:44,600 Speaker 2: again we will are discussing about the channel segments you mentioned, 168 00:08:44,679 --> 00:08:47,199 Speaker 2: Medicare being one of them, but also we will bring 169 00:08:47,240 --> 00:08:49,560 Speaker 2: it in direct to patients so that we would have 170 00:08:49,640 --> 00:08:53,160 Speaker 2: more broad access. Is another opportunity, another option for patients 171 00:08:53,200 --> 00:08:56,040 Speaker 2: that will have the opportunity to get to the QuickPen device. 172 00:08:56,320 --> 00:08:58,560 Speaker 2: By the way, the quickpent device is one that we 173 00:08:58,600 --> 00:09:02,359 Speaker 2: have available in many countries Gloali with a great acceptance 174 00:09:02,400 --> 00:09:02,800 Speaker 2: as well. 175 00:09:03,320 --> 00:09:05,360 Speaker 1: All right, Lucas, thank you so much. I know it's 176 00:09:05,360 --> 00:09:07,480 Speaker 1: a busy morning, so really appreciate you taking the time 177 00:09:07,520 --> 00:09:07,839 Speaker 1: for us.