Eli Lilly at Leerink’s Conference: Strategic Growth and Expansion

On Monday, 10 March 2025, Eli Lilly (NYSE: LLY) presented at Leerink’s Global Healthcare Conference 2025, offering a strategic overview that highlighted both opportunities and challenges. The company, represented by CFO Lucas Montarsi and Head of Investor Relations Mike Sippar, detailed plans for revenue growth, manufacturing expansion, and product pipeline developments, while acknowledging market pressures such as price erosion.

Key Takeaways

• Eli Lilly anticipates a 32% revenue growth, driven by its Incretin portfolio and new product launches.
• The company is investing $50 billion in manufacturing capacity to support growth.
• There is a strong focus on expanding into new international markets, including China and India.
• The Incretin portfolio, featuring products like tirzepatide and orforglipron, is central to growth strategies.
• Lilly plans to maintain a stable gross margin despite pricing pressures.

Financial Results

• Revenue Guidance: Projected revenue between $58 billion and $61 billion, with growth driven by the Incretin portfolio and international expansion, partially offset by price erosion.
• Incretin Portfolio: Experienced a 45% growth in the U.S. in Q4, with continued growth expected in chronic weight management and type 2 diabetes.
• R&D Spending: Set to exceed $13 billion, with increased focus on clinical trials and pipeline development.
• Gross Margin: Finished last year at 82%, expected to remain stable between 80% and 83%.

Operational Updates

• Capacity Expansion: A $50 billion investment in manufacturing includes 3 new API sites and 1 new parenteral site.
• New Product Launches: Products like KESANLA for Alzheimer’s and Aptlysis for atopic dermatitis launched in 2024, with further international launches planned.
• Market Expansion: Launched in over 30 countries in 2024, with a focus on securing type 2 diabetes reimbursement in major markets.

Future Outlook

• Orforglipron (Oral GLP-1 Agonist): First study results for type 2 diabetes expected in Q2, with potential comparable to injectable semaglutide.
• Retatrutide (Triple Agonist): Anticipated to deliver significant weight loss and address comorbidities.
• Sleep Apnea Treatment: Expected to impact revenue significantly in the second half of the year.
• Verzenio: Growth expected to slow due to market maturity and competition.

Q&A Highlights

• IQVIA Data: Eli Lilly’s direct vials are beginning to appear in IQVIA data, expected to stabilize and provide insights.
• Compounding Pharmacies: Anticipated to exit the market, with no significant impact on Eli Lilly.
• Ex-US Market: Expanded into over 30 countries, with reimbursement secured in Germany, Japan, and the UK.

For a detailed understanding, readers are encouraged to refer to the full transcript.

Full transcript - Leerink’s Global Healthcare Conference 2025:

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: think we should get started here. For those of you who don’t know me, my name is Dave Reisinger. I’m responsible for Diversified Biopharma Research at Leerink Partners. It’s very much my pleasure to welcome members of Lilly’s leadership team to be here with us in Miami, and thank you for making the trip.

So to my right is Lucas Montarsi, who is the company’s CFO, and to his right is Mike Sippar, who’s the Head of Investor Relations. And I guess to kick us off, it would be great, Lucas, to hear your perspective on the revenue guidance for this year. So we’ll get right into it since you’re the CFO on the numbers. So the guidance is $58,000,000,000 to $61,000,000,000 in revenue. Hoping you could discuss the factors that could drive performance towards the top end of the range and on the flip side towards the bottom end of the range?

Lucas Montarsi, CFO, Lilly: Sure. I’m happy to be here. Thinking about the revenue for this year, if you look at the midpoint of the range represents a 32% growth in revenue. When you look at our trajectory in the last two years, you’ll go all the way back to 2023. We were growing roughly 20% going into 2024, ’30 ’2 percent.

So the trajectory of growth is pretty much in line to the trajectory that we have been seeing in the marketplace as well. So we are not expecting a major inflection point getting into 2025. Some of the fundamentals of the business still remain the same. When you think about the Incretin portfolio, we presented this at the JPMorgan conference as well that we were seeing the fourth quarter of the Incretin business growing at 45% here in The U. S, Very, very strong growth, more significant, of course, in early days of the chronic weight management space and maybe also very strong, but again, more temper on the type two diabetes space that is in the mid-20s as well.

So a continuation of that strong growth, we expect to see here in The U. S. In 2025. Now that will be also move into the all U. S.

Markets. We talk about all U. S. Markets that we trigger quite a lot of new markets in 2024, basically more than 30 countries that we launched last year, most of them in the second part of the year, including a dozen of those ones in the fourth quarter. So that will be a significant growth driver getting into 2025.

We continue to plan new launches as we continue to ramp up supply production. We plan to launch in new countries and we have in the plants in particular getting into the latter part of this year, what we call big emerging market countries that will drive significant growth into the latter part of the year, but also more into 2026 like China, India, Brazil and Mexico. Now that’s the increasing portfolio. I love to always to talk about the rest of the portfolio as well that we brought four products into the market in the last two years in particular two last year with KESANLA in Alzheimer’s disease and also Aptlysis in atopic dermatitis. Those products will continue to drive growth in 2025 as well and launch into all U.

S. Markets. So those are kind of the drivers of that growth that we expect to see in 2025. Maybe my last comment, that is something that I mentioned during the earnings call is the price assumptions that will go back to what we think is a more natural headwind that we see that is in the mid to high single digit price erosion. The last two years was unusual in the calculation.

Remember that we had the launch of Moncharon then step bound that the year on year comparison was noisy. Now it’s more basically apples to apples comparison and I will go back to that mid to high single digit erosion. So those are kind of the push and the pulls that we expect to see in 2025.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Excellent. Maybe you could expand a little bit more on just the expansion of capacity.

Lucas Montarsi, CFO, Lilly: There

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: was an additional facility in North Carolina that I think opened recently. But how would you contextualize that volume expansion that you’re going to be benefiting from over time?

Lucas Montarsi, CFO, Lilly: Yes, that’s a great question. And it’s important reminder that when we think about new lines or new sites coming online, it’s not a big acceleration of new doses that will become available. We expect that continuation to grow over time. That’s very important to remind all us that again is not that we accumulate a basically a significant expansion with a new site coming online. You mentioned one of those sites.

We’re very excited that Concorde started commercial production by the end of last year. That’s our second site that we have in North Carolina. The year before then, we had RTP in Raleigh that came online as well. So we have now the two sites basically providing commercial production in parenteral for inkretins. And that continuation of investments into manufacturing will continue.

We were public a few weeks ago with basically providing more visibility of the expansion plans that we see for the future, announcing another $27,000,000,000 investment in The U. S. On top of the $23,000,000,000 that we are implementing now. So that will make a total of $50,000,000,000 investment on new manufacturing capacity to continue to build resilience in the future as well. More in details again about the $27,000,000,000 we’re talking about three API sites and one parented outside here in The U.

S. Those usually as you know investments in manufacturing takes several years. So don’t think that again is acceleration of capital investment, but a continuation of the growth that we were seeing in capital investments in The U. S.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Yes, that’s super impressive. But actually now that you mentioned it, so you said $27,000,000,000 3 API sites and one parental?

Lucas Montarsi, CFO, Lilly: Yes.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: So that’s all you get for 27,000,000,000

Lucas Montarsi, CFO, Lilly: That is correct. When you think about it from the API side, those are really large sites. API sites, we announced the one that you can use as a proxy is the one that we announced in Lebanon that is an API site, a large one. We announced that basically the investment on that size is roughly $9,000,000,000 altogether, right. So it’s the largest investment in Indiana.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: I look forward to seeing Dave smiling for a picture with Donald Trump in the Oval Office soon. Okay. So with respect to the momentum to date, if we could just pivot to just what you’ve seen year to date, we’re now in mid March. So with respect to the prescription demand that Lilly is observing, is it consistent with your expectations that you’ve set for revenue guidance

Lucas Montarsi, CFO, Lilly: this year? It’s early days, right? But you all have access to look at the IQVIA data. I think this coming public every Friday, so you have access. And we continue the same trajectory that we’ve seen once we resume all the commercialization efforts back in Q4.

I alluded to that in Q4 that we gained three percentage points of share across our increasing portfolio in Q4 and we continue to see that very nice momentum building into 2025. So going back to your question, it’s very much in line with our expectations.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Excellent, excellent. And could you just talk about the maybe this is a question for Mike. Just talk about the IQVIA inflection and how we should think about that and whether that’s still a moving target or whether the new base that was starting to be reflected on February 14 or in the February 14 data set, including Lilly Direct, was the go forward level from that point.

Mike Sippar, Head of Investor Relations, Lilly: Sure. Love a good IQVIA data question on a on a Monday morning. So so yeah. So the beginning of Valentine’s Day, the vial starts showing up into IQVIA. IQVIA does kind of a a triangulation process, and eventually, we hope that they’ll actually restate the historical so you can kinda see what the the ramp has been.

But you could assume that, like, since the launch up until the first week when you get vials, it’s kind of like a linear uptake. And so, there could be a little bit of noise in the next couple weeks, but it should stabilize and be a pretty good indicator on the go forward of what the vials are contributing. So stay tuned.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: All right. So regarding compounders, looks like they’re finally going to be off the market on March 19. So management has characterized the compounders as having, you know, had no meaningful impact on performance, despite, you know, all the noise. And obviously, that’s because tirzepatide is more difficult to make than sema, and most compounders are making compounded sema. But how should we think about the impact?

I guess, maybe I’ve already answered the question, right? But you said that they’ve had no meaningful impact on performance. How would you characterize whether there will be anything noticeable in coming months once they are off the market?

Lucas Montarsi, CFO, Lilly: I think you answered the question very nicely, by the way. I stated on this one, and we continue to look on different data sources, but we don’t have good data sources that basically provide reliable information on what is the size of the compounding business. We know, as you mentioned, that the vast majority is semi compounding and very limited to sepate type compounding. It’s still more important from our perspective, the patients that we feel very strongly that they need to receive product that is safe with quality. And, of course, the original molecule that we have a really robust process to produce is the most important thing that we want to bring to the patients.

So we are happy with now the enforcements that we expected to see from the FDA on March 19. And we will continue to partner with the administration to make sure that again the compounders are being removed and stop to separate that compounding.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Excellent. And then in terms of OSA as the driver sleep apnea, could you characterize that for 2025?

Lucas Montarsi, CFO, Lilly: Yes. We are very excited with this new indication and we have more to come. So it’s the first one of many. As you know, again, it’s the first actually pharmaceutical product that will treat sleep apnea. We mentioned that again, we expect to see more material impact into our revenue getting into the second half of the year.

We’ve got positive reconfirmation from CMS that will allow basically reinvestment in Medicare, but there is a period of process between again the validation then follow then the negotiation with the payers to get reimbursement and we expect that to at least have some of the payers negotiated and basically covering the product in the second part of the

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Got it. And then in terms of Surround five, my guess is that consumerpatients probably still underappreciate how much better a drug tirzepatide is than semaglutide. The media just typically talks about Ozempic, etcetera. So could you speak to when we should expect the company to be able to promote that head to head result?

Lucas Montarsi, CFO, Lilly: Do you want to comment on that, Mike?

Mike Sippar, Head of Investor Relations, Lilly: Yes. I mean, so the data were consistent with label. So there’s not a regulatory submission that’s underway. And actually, if you go to, like, the physician website, the data’s up there. The the sales force is actively promoting.

And to your to your point, I mean, it was a a a very clear and clean win of comparing the two agents, and you see significantly more weight loss on on ZAP bound than you did with with Wegovy. So in process, and the team’s excited. Okay. Got it.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: All righty. In terms of ex U. S. Market, so I’m hoping that you could provide a little bit more color on tirzepatide’s rollout, just so that we better understand how gated it is, whether there are supply constraints in any of the markets of the 30 that you’ve launched in to date. Just contextualize for us where those rollouts stand and how the additional volume ramp will play into ex U.

S. Sales over the course of the year?

Lucas Montarsi, CFO, Lilly: Yes. Happy to talk about our U. S. Markets. You may notice from my access that I’m coming from The U.

S. Markets as well and I have the opportunity to launch Monjaro in Spain early last year as well. So I can provide more color about how that performance is going over there. In general, again, we talk about the 30 countries, many of them actually launching in the second part of the year. So we expect to see a continuation of that growth.

All those markets that they launch, most of them on equipment, they have product available and continue to ramp up where the growth, most of those markets are out of pocket as well for anti obesity medication. So those are pretty much following the same pattern that we see in The U. S. What I mean by that is you still are in early days. Again, in terms of penetration, we are talking about low single digit, large unmet need, but it’s still low single digit that you see in terms of penetration, but growing over time.

So those markets are growing very nicely. In terms of share of market, it varies by country when you have basically markets that you don’t have a competitor. Basically, we are gaining pretty much entire market immediately. The markets that again, Wegovy was present, we are pretty much competing similar to what we see here in The U. S.

I think that’s more how we sit on the obesity space. What I didn’t mention very openly has been that also while we’re launching more than 30 countries, there are only a few of them that have type two diabetes reimbursement. In particular from the large countries we are talking about UK, Germany and Japan. And I think both Ilya and Dave have been very openly sharing as well that we are seeking reimbursement in the rest of the major markets, including the one that I was based in Spain as well. As you know, again, those are very mature markets.

And again, we feel that also could drive significant growth for more into the latter part of this year and into the future as well. Last new launches, I mentioned that we will continue to gate and launch into new markets, in particular, the four that we’re expecting to launch into the latter part of this year, including China, India, Brazil and Mexico. So that’s kind of the perspective. In terms of the size, the size is significant, right? We’re talking about nine hundred million patients that could benefit from Monjaro.

Remember that also I forgot to mention we have only one brand for the two indications in our U. S. Market, but it’s a significant unmet need. It’s still early days and a ton of opportunity to continue to grow. I know that we are going to be talking more about our four gsliplon most likely in the future, but I think also our four gsliplon having an oral option will unlock a significant volume growth into these markets.

And so just to repeat, so you’ve launched in more than 30 countries.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: How many of them have reimbursement for diabetes?

Lucas Montarsi, CFO, Lilly: There are a few of them, but they’re from the largest countries is basically Germany, Japan, and The UK. This also the type two reimbursement in our US market takes time. Right? So these view until you launch the product, you submit that and you go through the process of negotiation until you get the reimbursement. In those markets, both Trulisia and Ozempic are reimbursed.

So it’s a matter of time to get reimbursement as well of Moncharo.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Got it. Okay. Excellent. So why don’t we pivot to Orfogliplopron since you mentioned it. So obviously, Dan has said that he expects it to demonstrate a profile that’s injectable semaglutide.

In terms of the forthcoming press release for the first trial in Type two diabetes, what should we expect to be included?

Lucas Montarsi, CFO, Lilly: Yeah. And we expected Dan alluded to this that it would be pretty much similar to injectable semaglutide, thinking about type two diabetes comparing with Ozempic and thinking about obesity comparing with Wegovy. We have the first readout on type two diabetes that will come in, we expect to come in the second quarter of this year. It’s a forty eight week study. And I think the call the name of the study is Achieve one, if I’m not mistaken, Mike.

And what we expect to see is similar to the weight loss side, again, we’ve seen with Ozempic on their studies, I think was the SUSTAIN one and SUSTAIN 40. So that will be in SUSTAIN one and SUSTAIN 40. So that will be in the mid to potentially high single digit percentage of weight reduction. And in terms of one A1C level reduction is 1.5. So those are very much proxies that you see also in in same as well.

I think the low end, we talk about 4% to 5% and the high end of weight reduction between 6% to 7%.

Mike Sippar, Head of Investor Relations, Lilly: Yep. And and chief one, just to cover is that it’s a forty week study endpoint. So it is on the the shorter end of what you see. The ATHAIN studies, if you think about the ones that are people very interested in, we might see a higher weight loss. ATHAIN one, ATHAIN two is is a it’s like a seventy two week endpoint.

So Yeah.

Lucas Montarsi, CFO, Lilly: And for that one is for non type two diabetes population and we expect, of course, to see also more weight reduction similar to the one that it was accomplished by the high dose of injectable sema, the two point four milligrams and also the five milligrams of tirzepatide as well that it was in the mid teens or so.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Excellent. Okay. And it would be helpful for you to just contextualize how you see the market opportunity for the oral, right? So on the one hand, it sounds like you’re not really going to have any manufacturing constraints, which is very important. You could also price it slightly lower, but then again, you would just be pricing against yourselves since there are no oral small molecule competitors.

And so maybe you could just paint the picture for how you’re framing the commercial potential for or for glypron, assuming it has the profile you expect. Yeah. I guess and I’m thinking specifically for obesity. We’ll just leave, you know, diabetes aside for now.

Lucas Montarsi, CFO, Lilly: That that’s fair. And we talk about the the unmet need, the number of patients that could serve by the entire portfolio. Right? I think when we think about this space, we think about the portfolio more starting with tirzepatide, that’s our dual actin or forgliprone, that is our OLED GLP, but then also retrylutide that will come later, that is a triple actin as well. So, I think in terms of the market opportunity, is it going to be certainly large market opportunity that also we feel that there are many parts of that consistently when what we have seen in type two diabetes.

You see patients that may have the preference to starting an oral medication rather than an injectable, not only in The U. S, but there are many of all U. S. Markets that they’re heavy into orders versus injectables, including the one that I was based. You see that also in type two diabetes, but also in the obesity space that there is a strong preference to treat this with an order product.

So that is certainly one of the targets that again, our four wheel plan will take. The other one we talk about the commercial and manufacturing footprint as well that we can ramp up significantly in particular in some of these markets, that though we continue to ramp up our Pareto L production, there is so much that you can accomplish again in terms of the large population that could be served by these products as well. And we feel that again a product like an onodal, like our Folgepron could serve significant amount of patients globally as well. The last part, as you know, we have a study also in maintenance, that we feel also that patients that will either studying or forgliprone then maybe shift to an injectable or studying an injectable and reach a certain level of weight reduction will then maybe move into an order products like Orforglipron to maintain that weight over time as well. So more to come, but there are many different colors and perspective that will provide them, I think, a great opportunity that we have in front of us with Orforglipron.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Excellent. And could you talk about the opportunity just with your portfolio including or for Glypron to really strengthen your role with insurer slash So it seems like where for glypron is going to offer the opportunity to fortify the company’s leadership position in diabetes and in obesity well before various injectable and oral small molecule competitors launch three years plus from now.

Lucas Montarsi, CFO, Lilly: Can I comment on that, Mike?

Mike Sippar, Head of Investor Relations, Lilly: Sure. I mean, look, there’s definitely a payer component to this, but the the broader portion is actually just the portfolio effect. So if you have a high quality oral that delivers a profile in line with what you see with an injectable Ozempic or Wegovy, you’ve got a foundational agent in ZepBound that can deliver really great weight loss when draw for diabetes. And if you go, to our next pipeline, you know, after or if you go for on ritutide, the triple agonist, you’ve got an even potentially more powerful agent that can deliver more weight loss or address some comorbidities that are related to to glucagon activation. So you’ve got a really good data portfolio.

You can kinda meet people where they are. And, of course, that has some some benefit in the to payers and with physicians and with customers, but I think it’s a it’s more of a holistic portfolio strategy approach as opposed to saying we’re focused on contracting dynamics.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: That makes a lot of sense. Excellent. So why don’t we pause for a minute? We have about five minutes left. Just wanted to see if there are any questions from the audience.

All righty. So I’d like to pivot since we only have a few more minutes left to Verzenio. So Verzenio has been a very powerful growth driver and is a very substantial drug for Lilly. Could you talk about the pushes and pulls considering, you know, the positive growth drivers, but also the competitive dynamics?

Lucas Montarsi, CFO, Lilly: Yes. Happy to talk about Verzenio. You mentioned that it’s an important product for us in the oncology space, is the market leader in the CDK foursix space, both in metastatic and early breast cancer in The U. S, but also outside of The U. S.

As well. In terms of the market dynamics, what we are seeing is, of course, like, when the classes mature, you see the penetration of the classes starting to plateau. So that’s one of the driver. That’s very normal in all the classes as well. So you see that the market growth of the class as a whole started to move from maybe double digit into high single digit.

So that’s very natural and it happens with all the mature classes as well. The second one, you may have seen that a competitor, Kisqali, had a positive data readout in early breast cancer in a larger portion of the population as well than Verzenio. So you’re starting to see something that we factor, of course, in our guidance that is again, that is starting to grow and accelerated that growth and is starting to take share from Verzenio as well. We feel again based on the feedback from physicians that in particular in high risk population in early breast cancer, Still, Verzenio is the preferred drug. We have really good data and a preference for physician to treat in Verzenio.

In addition to that, the treatment for Verzenio is two years versus Kiskeli that is three years that I think is more convenient as well for the patient and and for the physician as well. So we feel that we have a strong position on that particular population. But to your point, has been a significant growth driver, in particular getting into 2025. That growth will temper in particular given the penetration and also the competition.

Mike Sippar, Head of Investor Relations, Lilly: Just to add maybe one thing because Verzenio is probably our highest drug exposed to some of the Part D redesign with the cash drop coverage. So pricing will be a headwind for some of the higher priced specialty medicines as well. Excellent.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Okay. And then, just thinking about a few other financial questions. So with respect to R and D, so the company appears set to spend $13,000,000,000 or so, maybe a little more in $25,000,000,000. And considering that or for glipron’s twelve Phase III trials will be basically completing this year or the vast majority will and RetratruTide Phase III will be wrapping up over the next year or so. Is it appropriate to think about sort of your Inchriton spending levels on R and D sort of peaking this year, considering the rollovers of those Phase three programs?

And how should we think about that total R and D spend progressing in the future?

Lucas Montarsi, CFO, Lilly: Yes, that’s a great question. I’m thinking more the mid long term putting 2025 aside. I think you mentioned the continuation or maybe acceleration of growth that we’re expecting to see in R and D this year. We talk about three Phase three trials that we initiated last year and we have new ones basically that we’re planning to take place into this year. So we continue to scale up our R and D footprint in 2025.

Thinking about more the midterm, you talk about some of the studies that we start basically completing and moving on that is basically on our forglipon and retry to tie. But we feel about the increasing space to continue to add new studies in particular also potential and other implications in other therapeutic areas and then outside the increasing. As you know, we continue to replenish our pipeline with new molecules across oncology, immunology and neuroscience as well. We talk about the big five that we brought to the market, but we have the next generation of products also that we feel very excited about, including some of the molecules that we are planning to bring into cardiovascular space like leponid serum for LpLLa and then we have other molecules as well in the rest of the portfolio. So our, again, strategic intent is to continue to drive that growth, to drive that sustainable, basically replenishment of our pipeline into the future.

Excellent. And one final question. So obviously, your financial prospects are very robust this year,

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: including I think slight gross margin expansion. How should we think about the gross margin longer term for the company? I would think that you’ll get the benefits of manufacturing operating leverage plus some mix shift towards or for GluPran, which will be higher margin. But then again, you’re expanding into ex U. S.

Markets, which are lower priced, etcetera. So how should we think about the gross margin beyond 25?

Lucas Montarsi, CFO, Lilly: Yes, that’s a great question. We move out to provide again guidance and perspective on gross margin, but I can give you more color around that. We finished last year almost on the top tier comparing with our industry peers, roughly at 82% gross margin, 80% to 83 depending on the quarter. And we feel that is an unstable, again, way to look at it moving forward into the future as well. There are you mentioned some of the push and the pulls that we see on gross margin and spot on.

You mentioned product mix being favorable that will be a tailwind into basically our gross margin line. In addition to that, of course, again, the new manufacturing side will continue to drive productivity and efficiencies. So that is the other tailwind that we see. On the flip side, we talk about price that will be one of the headwinds that we expect to see. Mike alluded about the Part D already signed, but we have cost containment measures both in The U.

S. And our U. S. Market. So that we expect that continue to be a headwind into our gross margin.

The last one is as well all the investments that we are doing. We talked about a bit before and while those manufacturing sites come online, there is a depreciation that will start to impact our our COPS line, right? So those are the push and the pulls that we see. The way that I think about it for the modeling, for the ones that are modeling our projections into the future, getting into that 80% to 83% stable seems to be a good proxy for the future. Excellent.

Dave Reisinger, Responsible for Diversified Biopharma Research, Leerink Partners: Well, we are out of time. Thanks so much for being here with us.

Lucas Montarsi, CFO, Lilly: Appreciate it. Thank you.

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