Eli Lilly and Co Q1 2025 Earnings Call Summary

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

Question: Asad Haider - Goldman Sachs - Analyst : Thanks for taking the question. Dave, just in light of the CVS formulary announcement this morning, Mounjaro Zepbound, there are clearly some investor concerns about the PBM dynamic in obesity, given what we've seen in other big health care markets in the past where two PBMS -- where PBMs spent two companies against each other. So two-part question. Number one, what is your expectation on market share dynamics in the next weeks and months from the CVS formulary loss? And then second, can you talk to your strategy on how you're going to be navigating an environment where we could see PBMs continue to try and restrict formulary access between Zepbound and Wegovy? Thank you.

Question: Geoffrey Meacham - Citi - Analyst : Morning guys. Thanks for the question. For Dan or for Dave, when you look at the positioning of orforglipron, is the ultimate goal to have meaningfully more indications than tirzepatide, just given the oral convenience. I think when you look beyond just weight loss, would seem that broader cardio investment makes sense, but maybe also perhaps combos in I&I or autoimmune or even neuropsych? Thank you. 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 01, 2025 / 2:00PM, LLY.N - Q1 2025 Eli Lilly and Co Earnings Call

Question: Christopher Schott - JPMorgan - Analyst : Great, thanks so much. Just another orforglipron data. Just post the data we've seen here. Can you just elaborate a bit more on the role you see orforglipron playing in the core obesity and diabetes market relative to injectables? And maybe as part of that, any thoughts on what type of share you would envision orals taking in the market over time? Thank you.

Question: Terence Flynn - Morgan Stanley - Analyst : Great, thanks for taking the question. Two part on orforglipron as well. I know you're obviously not going to comment directly on pricing at this point. But maybe just conceptually, if you're delivering the same profile as an injectable medicine would you decide to price lower, I guess, given you price to value. And then as you think about having a portfolio of weight loss medications potentially in 2026, does that give you additional leverage with some of these PBM discussions? Thank you.

Question: Mohit Bansal - Wells Fargo Securities, LLC - Analyst : Great, thank you very much for taking my question. I think going back to the CBS announcement this morning. There are two ways to look at it. I mean one could be, which obviously the stock reaction is like that, it seems like, I mean, Zepbound vs Wegovy kind of price war? Or the other way could be looking at CBS comments, it seems like a lot of employers did not opt in and CBS is finding a way to actually provide affordable access to this medicine. How do you view this development? And in longer term, I think is it better versus GLP-1 or is it a GLP-1 versus access situation you see this is going to evolve over a couple of years?

Question: Alexandria Hammond - Wolfe Research - Analyst : Thanks for taking the question. Just one quick one on TRAILBLAZER-ALZ 3. So during the 4Q call, Anne mentioned that the team is closely watching the preclinical trial, and the study will read out when the target number of progression events were accrued. Can you update us as to where we are from that event point of view and remind us of what a successful trial looks like? Thank you.

Question: Seamus Fernandez - Guggenheim Securities LLC - Analyst : Thanks for the question. So I'll go with another non-obesity question. How is Ebglyss tracking against your ambition of it being a best-in-class launch? Is your vision for peak sales in line with consensus sales of $2 billion? Or do you see an opportunity materially higher than that? And if not, is the barrier related to Sanofi's claimed rebate wall or something else like the breadth of the label or perceived efficacy differentiation? Thanks so much.

Question: Timothy Anderson - BofA Global Research - Analyst : Thank you. A question on kind of going back to formulary positioning in obesity. So I know you don't want to play the one of one formulary game but it's still something that might occur anyway because Novo is losing share to you and price is really the only lever they can pull at the moment and some payers will look at one of one as a way to manage spend. 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 01, 2025 / 2:00PM, LLY.N - Q1 2025 Eli Lilly and Co Earnings Call I know that some states have already taken that approach, now we're seeing CBS. So really, the question is I guess, of covered lives today, what percent of payers already are having this one of one approach and just again, your view for how this is going to evolve going forward, whether you like it or not?

Question: Evan Seigerman - BMO Capital Markets - Analyst : Hi guys, thank you so much for taking my question. I wanted to touch on tirzepatide (inaudible). The update was a bit surprising today. Can you provide some additional detail on what FDA wants to see in regard to additional data? And what you didn't have from the SUMMIT trial that was to demonstrate the clear enough benefit? Thank you.

Question: James Shin - Deutsche Bank - Analyst : Hey, good morning, guys. Thank you for the question. Maybe one for Lucas. I know revenue guidance was maintained, but is the mid-to-high single-digit price headwinds still intact following the CVS formulary decision on Zepbound and also given the movement in FX? Thank you.

Question: Umer Raffat - Evercore ISI - Analyst : Morning guys. Thanks for taking my question and congrats on recent orforglipron updates. I had a question -- a two-part question on orfor safety. First, I recall you mentioned no hepatic safety signal was observed and no highs law. Could you confirm there was no numerical imbalance on ALT above 5 times? And on diarrhea, I recall it was in the low to mid-20s across the second highest and highest dose. How should we think about that heading into the obesity trial, especially with longer duration? Thank you very much.

Question: Steve Scala - TD Cowen - Analyst : Oh, thank you very much. My recollection is that Lilly used aggressive formulary positioning as a lever with touts against other IL-17 competitors and, therefore, reduce choice. Would you refresh our memories on what that did for touts in terms of share and incremental sales? And if you're willing to, at what discount? And how can that experience inform us on the outlook for Zepbound we go on the CVS formulary? Thank you. 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 01, 2025 / 2:00PM, LLY.N - Q1 2025 Eli Lilly and Co Earnings Call

Question: Courtney Breen - Bernstein - Analyst : Hi everyone, thanks for the question. Perhaps just following on from Steve's question as well. Can you clarify for us because I think a number of investors are concerned and obviously, we see that in the share price today, how many current patients on Zepbound are being covered by CVS Caremark today?

Question: David Risinger - Leerink Partners - Analyst : Yes, thanks very much. So I'm hoping that you can comment, Dave, on discussions with the Trump administration on tariffs outside of the 232 investigation. So the driver of my question is that the countries of origin for Lilly's drugs IP and API are obviously not in countries that represent national security threats. And I'm curious about the discussions to satisfy the Trump administration's interest in having drug companies record more profits in the United States and generate more tax revenue in the United States? Thank you.

Question: Kerry Holford - Berenberg - Analyst : Apologies. Thank you. A question on the cash pay approach here in the US is about -- CVS has announced that its pharmacists will stock the would go the cashpay pens. So my question is when does that whether Zepbound are available in the US in any pharmacy chain today? And given your enthusiasm for that opportunity cash pay in general, I'm interested in whether you're considering additional channels outside your online LillyDirect portal, would that be an opportunity for you as well within the pharmacy chains in the US? And then -- and a related question, do you ultimately to ever offer the Zepbound pens via the cash pay route? Or do you intend to keep that separation? Thank you.

Question: Akash Tewari - Jefferies - Analyst : Hey, thanks so much. It seems like your team is really going after the 75% of Americans who are both overweight and obese. Would long-term net pricing have to approach insulin levels for that to become a reality? Additionally, the Street models long-term margins going above 50%, while your team has been insistent that, that 40% to 45% range is really sustainable. How much of that delta is really us misunderstanding your volume over price approach to GLP-1s long term?

Question: Trung Huynh - UBS - Analyst : Hi guys, thanks for the question. Just on orfor obesity expectations. So in a similar way to outlining your thoughts on the orfor diabetes achieve data, how you thinking about the weight loss for orfor in the attain obesity studies? And on the tolerability side of things, can you just give us any color on when you had those GI side effects and discontinuations in ACHIEVE, was it early or later, just thinking about how tolerability could be from the attain versus ACHIEVE studies? Thanks.

Question: Carter Gould - Cantor Fitzgerald - Analyst : Good morning. Thanks for taking the question. I appreciate all the upfront commentary on tariffs. I guess, Dave, given sort of your unique perspective in Lilly's active role in shaping policy. It's somewhat surprising, we didn't hear you talk about some of the drug pricing risk. I guess anything you can share there around if you think potential MFN legislation is a priority or possibility in the coming balance of the year? Thank you.

Question: Rajesh Kumar - HSBC Bank Plc - Analyst : Hi there. Thanks for taking my question. Just on access and coverage of Zepbound, could you update us on how that looks now compared to, say, a year back same time how many more patients have coverage in the US? And what are the next steps, especially in light of compounders being blocked from filling campaign products, which are no longer allowed for Lilly product at the moment?

Question: Kripa Devarakonda - Truist Securities - Analyst : Hey guys, thank you so much for taking my question. I have a question about the [Mounjaro] phase trial which is expected to be completed by June. Any update on when we might see data? We've heard the potential to see data in June at a conference. Also, can you help set expectations for the data? Thank you so much.