Eli Lilly and Co at UBS Global Healthcare Conference Transcript

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

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Fantastic. So maybe let's start with Mounjaro. Obviously, very (inaudible). Congrats on the approval. Can you walk us through the launch strategy? Like what are the patient buckets you're primarily targeting? There's been a lot of discussion around the GLP-1 Trulicity potential switches. Can you address that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2022 / 12:30PM, LLY.N - Eli Lilly and Co at UBS Global Healthcare Conference

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : And let's just discuss pricing. So it came in at a price point around -- I think it's 9.9% above Trulicity, other GLPs. Walk us through the rationale about how you arrived at that price point. There's been a lot of discussion about what the read-through means to how you're positioning yourself competitively in obesity. So tell us what you can.

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Anything you can say about the choice to do flat pricing versus differential dosing?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Just from a timing standpoint, when you've got approval, obviously, there's sort of -- there's cycles to get on formularies, et cetera. Do you think this adequately positions you to get on the majority of formularies next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2022 / 12:30PM, LLY.N - Eli Lilly and Co at UBS Global Healthcare Conference

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : And then clearly, with a product with this much interest from the investors' side, there's going to be a lot of focus on the launch. Can you walk us through what we should expect from the first few quarters in launch in terms of discounting, rebating, sampling? Give us some color there.

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : As we think about what you've learned from the Trulicity launch in terms of where patients discontinue, where they need sort of assistance with compliance, what can you tell us there? And how are those learnings being factored into the tirzepatide launch?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : We sort of touched upon GLP-1 or current GLP-1 switches. There seems like an inevitable portion of Trulicity cannibalization here. How are you thinking about that right now? It sounds like it's going to be a naive patient targeted campaign but just what's your expectation there?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Does that -- does the incentive to switch grow at all as we approach the Trulicity loss of exclusivity?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Do you -- one question we've had a little bit is just the anticipated off-label use. You've shown amazing obesity data, obviously. Any comment on any data you have with regards to the off-label use of competitors' products for obesity? And where would you expect yours to shake out prior to an official obesity approval?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Again, clearly incredible SURMOUNT data. And so I think your base case expectation was for a filing in '24 on the basis of the complete program?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : One, can you walk us through the program? So what are the subsequent readouts we should expect? And then -- and two, what are the steps that you're going to take now to try and accelerate that?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Any -- can you give us any time lines around when that's likely to occur? Or when you would likely to be in a position to update us?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Super. We have a couple of questions here. So Victoza is hanging around, which suggests switching patients isn't easy. What can Lilly do that Novo could not?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : What has -- I mean it's super early, but what has the early frontline feedback been from physicians who have the approval, have the label? We have the SURMOUNT data. It's a powerful pitch.

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : And another question here. Novo has CagriSema in their pipeline with a target weight loss of 25%. What are your thoughts?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : And just remind us. I think you have the GGG product. Just give us the -- what you can quickly say about that?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Another question from the audience. Novo's weekly insulin shared some interesting data with good glucose control and some hypo-risk. Could this protect the basal insulin market? Or is this a market subject to pressure no matter what?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : And another question from the audience. You've obviously had great data recently. But even when you don't have a best-in-class product, Lilly seems to have an ability to make a commercial success of it. In your experience, what is the Lilly secret sauce?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : So just going back to that kind of Trulicity versus Mounjaro launch in terms of is there more horsepower behind the Mounjaro launch? Is there -- is it smarter, more sort of data-driven decision making? Is it both? Could you just elaborate a little? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2022 / 12:30PM, LLY.N - Eli Lilly and Co at UBS Global Healthcare Conference

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Another question. I'm becoming increasingly worried about what people are going to have me ask, but one could argue that the insulin price declines have allowed the GLP-1 market to expand. If there isn't any oxygen generated somewhere, do you expect the payer environment to

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : And just an overall question on pricing. You obviously have a marketed product in every sort of sub-class of diabetes.

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Any observations there that -- anything you're seeing that should suggest a different trajectory going forward to what we've observed in the past?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Yes.

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Okay. And maybe just to move to obesity again. There's been some huge numbers thrown out about the market. We see this sort of 100 million patients in the U.S. What are you -- what is your data -- what are your sort of expectations around what is the truly addressable sort of treatment-seeking, compliant or meaningfully compliant patient population?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : You have some sleep apnea data coming soon, correct? Or it's on the horizon?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Can you sort of -- can you roughly sort of frame when? Or is it...

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Okay. Just as we think about, again, sort of contrasting diabetes to obesity, what's your expectation around compliance rates in one market from the other? And how do you address that? Again, you have a system clearly in diabetes that is very efficient and set up to maintain the patients on therapy. So how would that differ in obesity?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Great. A couple of more questions here. Any thoughts on indications like NASH, and within that, the sort of diagnosis and access to patients? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2022 / 12:30PM, LLY.N - Eli Lilly and Co at UBS Global Healthcare Conference

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Another question here. Does it surprise you that it's taken this long for the benefits of the SGLT2 class to catch on with people?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : The lean body mass loss data for tirzepatide, when should we expect to see that?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Anything -- any sort of -- maybe just refresh us what's coming at ADA? And what -- if you were in our seat, what you'd be paying attention to?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : And then just with regards to tirzepatide approval, ex U.S. Can you just walk us through those time lines? And then as you think about commercialization in those different markets, any additional challenges or things that you're specifically thinking about?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Just one more question here. With regards to the Wegovy supply versus demand dynamic, there's obviously been a disconnect because of the supply. Like, do you have a sense of how big that delta is? And if it was -- if that wasn't a constraint, what -- how much larger do you think the numbers we'll be seeing?

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Fantastic. I think we're right at the end of time. So Mike, just I'll turn it back to you. Any sort of closing comments? You clearly have a few busy months ahead and are a popular guy. So I'll hand it back to you.

Question: Colin Nigel Bristow - UBS Investment Bank, Research Division - Analyst : Thank you for your time. This is great. Congrats.