Eli Lilly and Co at JPMorgan Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christopher Schott - JPMorgan - Analyst : Just talk a little bit about the 2025 guidance approach, just given some of the dynamics we saw this year. How do you think about setting targets for this year?

Question: Christopher Schott - JPMorgan - Analyst : Can I just go back to 4Q just on the wholesaler levels? Where are we now in terms of how much inventory is out?

Question: Christopher Schott - JPMorgan - Analyst : Bigger picture question --

Question: Christopher Schott - JPMorgan - Analyst : Okay, perfect. Maybe a bigger picture question just to ask upfront. Within Lilly, is there any debate around demand for the incretins at this point? I think that's one of the things that creeps in some of the conversations of this -- the raise in guidance and some of the pullback. Is this saying anything that we need to kind of be reconsidering the demand kind of part of the equation?

Question: Christopher Schott - JPMorgan - Analyst : Right. On the capacity front, I think you're talking about a 60% kind of step-up year-over-year first half of '25. Just talk a little bit about driving that piece of it, and maybe just help level set us over the next few years how we think about Lilly's capacity build-out.

Question: Christopher Schott - JPMorgan - Analyst : And I guess on the demand generation side, is Lilly -- at this point, should we think of this as kind of like full push ahead or are you still balancing --?

Question: Christopher Schott - JPMorgan - Analyst : Yes, absolutely. You mentioned access. Just update on where we are in terms of access and how much more should we expect in terms of build?

Question: Christopher Schott - JPMorgan - Analyst : On the access piece, over time, obviously, the goal is to get as broad as possible. Is that also a metered approach in the near term as you balance, I guess, like price versus demand?

Question: Christopher Schott - JPMorgan - Analyst : Okay, excellent. Maybe just 1 last question on Mounjaro, Zepbound just pricing for this year, as you mentioned, stable. Is there a reason to be more cautious on pricing in the near term for -- or any trend to break from what we've been seeing from your perspective?

Question: Christopher Schott - JPMorgan - Analyst : Duration is another topic, I think, that comes up a lot. How are you finding through your education process and just physicians being comfortable with this, how is the duration piece of the equation playing out as relative to your expectations?

Question: Christopher Schott - JPMorgan - Analyst : Maybe one bigger picture and then we'll jump into some pipeline. The international piece of the incretin market, I know we're in the infancy of the launches there. But when you think about the market over time, how large of a percent of the business is coming ex-US for something like this?

Question: Christopher Schott - JPMorgan - Analyst : Yes, big markets. Pivoting to pipeline. Orforglipron, big update coming this year. Just latest thoughts in terms of confidence in that asset. And maybe just help us frame out where you see that fitting in kind of the broader treatment paradigm relative to a Zepbound or a Mounjaro.

Question: Christopher Schott - JPMorgan - Analyst : Can you remind us on orforglipron when we can think about data and probably once we see that data, how quickly can that get filed with FDA?

Question: Christopher Schott - JPMorgan - Analyst : And on retatrutide, has your view changed at all, I guess, in light of the CagriSema we've seen of, I guess, on that higher end of the market for efficacy?

Question: Christopher Schott - JPMorgan - Analyst : And then maybe just last one, bigger picture, how do you think about Lilly's incretin portfolio looking at, let's say, 10, 15 years?

Question: Christopher Schott - JPMorgan - Analyst : Yes, right. Obviously, incretins, obesity has been a huge part of the story. Stocks had great performance over the last few years. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 10:15PM, LLY.N - Eli Lilly and Co at JPMorgan Healthcare Conference As I just think about the company evolving over time, how do you think about balancing what's obviously one of the biggest growth opportunities the industry has ever seen versus not becoming too dependent on any one category or any one product? So just talk a little bit about just how you feel like Lilly is balancing kind of that dynamic as you think about where the company is in 15 or 20 years versus where we are in 3 or 4 years?

Question: Christopher Schott - JPMorgan - Analyst : Lilly seems uniquely positioned to be able to make those investments?

Question: Christopher Schott - JPMorgan - Analyst : I guess coming back to the BD piece, you mentioned 100 deals over a short period of time. Can you keep scaling at that level? Or does -- at some point, is there just too many projects, too many assets, and you might lose focus?

Question: Christopher Schott - JPMorgan - Analyst : Last question on the BD front. Does larger M&A make sense for is something historically, the company hasn't done? But to the extent you found an innovative business where you could maybe apply your capital and your focus, would you look at that? Or do you stay with the sweet spots of these earlier stage deals?

Question: Christopher Schott - JPMorgan - Analyst : On the rest of the portfolio, I guess, also the cash flow the business generates, I think you mentioned these examples of being able to make these longer-term bets in some of these big markets. Are there other opportunities to, I guess, create competitive advantage, just given the cash flow from the incretin piece of the business to maybe fund, whether it's sales and marketing, kind of the way you think about portfolios differently in the other verticals?

Question: Christopher Schott - JPMorgan - Analyst : Maybe just last topic here, new administration coming in. What are you most focused on? How are you thinking about the dynamics of the sector heading into the Trump administration?

Question: Christopher Schott - JPMorgan - Analyst : I know it's early. Do you find the new administration is receptive to these ideas or how has the dialogue been to the extent you can comment on it?

Question: Christopher Schott - JPMorgan - Analyst : Excellent. Well, I think we're just about time. Dave, really appreciate the comments.