Eli Lilly at Wells Fargo Conference: Strategic Growth Insights

On Friday, 05 September 2025, Eli Lilly (NYSE:LLY) presented at the Wells Fargo 20th Annual Healthcare Conference 2025, showcasing its recent strong performance and future strategies. The company highlighted robust growth driven by incretin medications, while addressing challenges such as competition and access limitations.

Key Takeaways

• Eli Lilly reported a strong Q2 performance, propelled by Mounjaro and Zepbound.
• The company is confident in its 2025 guidance, despite expected mid-single-digit price declines.
• Orforglipron (R4) shows promise as an oral treatment for type 2 diabetes and weight management.
• Access challenges, including the CVS formulary change, are impacting U.S. operations.
• International expansion is a focus, with significant growth in Brazil, Mexico, India, and China.

Financial Results

• Q2 Performance: Driven by Mounjaro and Zepbound, Eli Lilly reported a strong second quarter.
• 2025 Guidance: Reaffirmed, with confidence due to improved supply and launch timing.
• Pricing: Anticipated mid-single-digit price declines due to market competition.
• International Growth: Strong Q2 sales, aided by new market stocking.

Operational Updates

• Orforglipron Development: Phase 3 trials are complete, with submissions planned for chronic weight management and type 2 diabetes.
• International Launches: Mounjaro launched in Brazil, Mexico, India, and China, with gradual growth expected.
• U.S. Market Dynamics: High penetration in type 2 diabetes, with label expansion supporting obesity market growth.
• Access and Reimbursement: Focus on securing type 2 diabetes reimbursement internationally; outcome data crucial for obesity reimbursement.
• CVS Formulary Change: Impacting Zepbound access, with patients switching to alternatives.
• Employer Opt-In: Approximately 55% of employers have opted-in for chronic weight management.

Future Outlook

• Orforglipron Positioning: Targeting global markets, particularly in oral-heavy regions like Asia.
• International Expansion: Focus on type 2 diabetes reimbursement, with expected coverage within a year.
• Pipeline Development: Promising early-stage assets in oncology and neuroscience.
• Clinical Trials: Exploring non-cardiometabolic uses for incretins.
• Litigation and IRA Impact: Active legal strategy against compounding pharmacies; anticipating impact from the Inflation Reduction Act.

Q&A Highlights

• R4 and Global Markets: Potential to increase penetration in oral-heavy markets.
• Outcome Data: Essential for demonstrating obesity as a chronic disease.
• Price Competition: Maintaining disciplined pricing amid increased supply from competitors.
• Non-Incretin Opportunities: Focus on oncology, neuroscience, and immunology.

Readers are invited to refer to the full transcript for more detailed information.

Full transcript - Wells Fargo 20th Annual Healthcare Conference 2025:

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Morning. Thank you very much for being here on a Friday. My name is Mohit Bansal. I’m one of the biotech and pharma analysts here at Wells Fargo. I’m joined by my colleague, Surina Chen, and we are both very happy to have the Lilly management team. We have Patrick Johnson, who is the President of Lilly International, and we have Mike Czapar, Head of HR, with us. I’ll give the floor to you if you have any opening remarks, and we can just get going.

Patrick Johnson, President of Lilly International, Lilly: Thank you very much, Mohit. It’s great to be here. I think for all of you, you have a decent understanding of Lilly. We had a really good second quarter, and I think overall across the company and across the C-series, we see a robust performance. Of course, driven by the incretin teams on Mounjaro and Zepbound in the U.S., and mainly Mounjaro outside of the U.S., where it’s the brand name across type 2 diabetes and chronic weight management. We are looking forward to several launches across the C-series during the second half of the year and to launch a rich pipeline over the remaining part of this decade. I think that’s pretty much the opening, Mohit. We can take it from here with Q&A.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Thank you very much. Why don’t we start with the Orforglipron run? It’s a hot topic right now, right? I mean, again, there have been ebbs and flows, right? I mean, one data, second data, third data. How well is your understanding of the product profile at this point? How is it fitting? How do you think it will fit in the marketplace at this point?

Patrick Johnson, President of Lilly International, Lilly: Yeah. You know what? We’ve read out three of the phase 3 trials and everything that is required to submit the chronic weight management indication to regulatory bodies. We are right now preparing those dossiers to submit for chronic weight management. Type 2 diabetes will be the second submission that’s slightly delayed behind obesity for regulatory requirements in terms of cardiovascular data. When we look at the trials so far, we believe it’s a very appealing safety and tolerability profile, HbA1c and weight loss, very much consistent with what we see with injectable incretins. It also has the benefits of not having to be taken together with food and water. It has the benefit of a scale-up here that is impossible with injectables. When we look to how we believe that this market will evolve, we actually believe there will be several segments.

Not everyone will be looking for the maximum amount of weight loss. Approximately 50% of people with obesity have a BMI below 35. Even today, the ones that are treated with semaglutide and with a BMI below 35, more than 50% of those are on doses below 2.4. I think that’s really where we see the sweet spot for Orforglipron. People with a lower BMI that are not out of the maximizing by weight loss and actually prefer the convenience of an oral. That’s another factor. Despite the tremendous success with injectables, we know that there is a big chunk of patients that if everything else is equal, they have a strong preference for an oral. Maybe lastly, we’re also conducting an extension of a SURMOUNT-5 study, which is the head-to-head tirzepatide versus semaglutide. We extended that study to study Orforglipron in maintenance.

We took patients from both the tirzepatide and semaglutide arm and versus placebo to see if oral could be a suitable maintenance treatment for those that would prefer to switch as well. Those data we read out very late 2025, early 2026. That’s pretty much how we see R4 and also in some of the Asian markets where it’s got a strong preference for orals, Japan, China, being two of those. We are excited about the opportunity with this asset as well.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Great. For sure, like you have talked in the past about this being a pre-drug in international markets. When you think about the U.S. markets as well, how do you see the positioning of Orforglipron? It is a very good drug for diabetes if you think about it. You talk about the team maintained as well. Do you think it is a meaningful contributor in the U.S. as well, not just U.S.?

Patrick Johnson, President of Lilly International, Lilly: Absolutely. We believe R4 is going to be a global player. Even in the U.S., the data point that I shared with you in terms of the patients being treated with a BMI below 35, that is the truth in the U.S. as well. That position that I referred to earlier, that’s our global position. I think we touched upon the opportunity in type 2 diabetes. If you look at the diabetes data so far for Orforglipron, it’s super appealing. You see an HbA1c reduction of 1.8. You saw a weight loss in the obese population with type 2 diabetes of 10.5. You saw a very positive impact on all of the cardiovascular biomarkers. The oral type 2 market in the U.S. is huge. We’re talking about 4 million patients on orals in the U.S. every month.

I actually think this is a really, really good medicine for type 2 diabetes.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. Got it. Given that you are managing international right now, let me talk a little bit about the U.S. markets here. First, starting with type 2 diabetes. In the U.S., the penetration is high and still growing for type 2 diabetes. Compare that, compare in contrast to U.S. markets. Let’s just stick to developed U.S. markets at this point. How do you think the penetration is at this point and how much more you could grow the market with R4GP as well?

Patrick Johnson, President of Lilly International, Lilly: Yeah. Yeah. The U.S. opportunity is significant in proteins. We had a very strong second quarter now in 2025, to a certain extent driven by new launches. We shared that with some of you yesterday, but we launched in Brazil, Mexico, India, and full launch in China by moving from auto injector to quick bend. Of course, we saw some inventory build as well. Maybe we will see much more of a gradual growth the second half of the year. Long-term, type 2 diabetes just starting there. The composition of the U.S. business is today different than the composition of the U.S. business. When you look at our incretin performance outside of the U.S., 25% of that is coming from type 2 diabetes. That’s our estimate. 75% from chronic weight management. We have more or less no reimbursement for chronic weight management with a few exceptions.

You should define that part, the 75% pretty much being out of pocket. Type 2 diabetes, we have only reimbursement in five markets outside of the U.S. today. We are in negotiations with several agencies across the globe to get the type 2 reimbursement as well. It will take some time, and I think that’s mainly going to hit in 2026. We have much more opportunities in type 2 U.S. than we are currently able to capitalize on because that’s mainly a reimbursed business outside of the U.S. I think this range of 75%, 25%, you will see that evolve over time and probably more type 2 diabetes than we currently see.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: R4 could help there, for sure.

Patrick Johnson, President of Lilly International, Lilly: Orforglipron could definitely help in that space as well to drive an increased penetration, particularly in those segments that we referred to earlier, and particularly in markets that are heavy oral markets, like Asia, and particularly Japan.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. Let me ask one more question before Surina talks about the quarter dynamics here. In the U.S., we talked about how label expansion, new diseases coming online definitely helps the obesity market or weight loss market. Does that matter similarly for international markets as well, although it is a cash market for the most part? Do you think that part could also become a reimbursed market over time?

Patrick Johnson, President of Lilly International, Lilly: Yeah. I think the major benefit of outcome data is really to provide evidence that obesity is a chronic disease, and it’s not a result of lifestyle. I think that’s where we’ve seen the major benefit. Also, in the U.S., when we’re talking about employer opt-in, when we’re talking about coverage for patients in Medicare and Medicaid, those outcome studies are one way of gaining access. I think it’s similarly outside of the U.S., even if it’s a universal coverage system in most of those markets, being able to provide data along the lines that we have been able to do for obstructive sleep apnea. I hope in a not too distant future, the mobility mortality outcome study and in some markets, heart failure, that is extremely powerful to gain traction, to consider reimbursing people for treating chronic weight management as well.

Surina Chen, Analyst, Wells Fargo: All right. I wanted to ask about some of the quarter dynamics and expectations for the rest of this year. Q2, Mounjaro ex-U.S. sales were really strong. It sounds like some of that was due to stocking. Can you tell us how you see the balance between stocking and demand, perhaps the growth from the diabetes versus chronic weight management, and then just how to think about the rest of the year and what are the remaining growth drivers?

Patrick Johnson, President of Lilly International, Lilly: Feel free to join me in here, Mike. I think when you look at Q2, the balance in between type 2 diabetes and chronic weight management was the one that I just referred to, 75% to 25%. Particularly in Q2, we had major launches, the four countries that I referred to earlier. A huge majority of that was in the chronic weight management space. Of course, when you look at markets like India, China, Mexico, and Brazil, there will be a significant channel build at the time of launch. When we look at the second half of the year, we have a few launches, but none of those are in the magnitude of what we did in the second quarter. That is why we are saying we will not repeat that channel build in Q2 during the second half of the year.

We also refer to a majority of the business outside of the U.S. being cash business. Last year, we spent quite some time to understand seasonality in between the different quarters. What we saw consistently over the last four years was that there is a seasonality that sequential growth quarter over quarter is slowing down during the second half of the year. We can speculate what’s driving that, if it’s lifestyle, during the holiday season, whatever it might be. There is a slowing down in terms of a sequential growth. That will impact the second half of the year as well. That is why we share the overall opportunity is big. The underlying performance is strong. Midterm, we see a tremendous opportunity for growth OUS. The second half of the year for modeling, we would probably recommend to more expect a gradual growth during the second half OUS.

Surina Chen, Analyst, Wells Fargo: OK. Gotcha.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Fair to assume you are assuming that in guidance already because of what you learned in the last two years?

Mike Czapar, Head of HR, Lilly: Yeah. I mean, the guidance contemplates a range of moving parts across U.S. and international and incorporates the strong underlying growth we saw in the first half and incorporates the dynamics that you talked about with international, as well as the impact of the CVS change for Zepbound in Q3, and as well as thinking about kind of sequential pricing trends due to Medicare patients on Mounjaro that would enter the catastrophic phase, as well as we were encouraged that we re-upped our access for Zepbound in two of the three major PBMs. Those rates were effective 7/1. That needs to be contemplated as well. All that added up is the guidance range that we shared in Q2 and pricing guidance as well of mid-single-digit declines.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: That is your idea, right?

Mike Czapar, Head of HR, Lilly: That’s right.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: OK. Thank you.

Surina Chen, Analyst, Wells Fargo: On that CBO’s impact, can you talk about what you’re seeing so far, how that has been tracking relative to expectations, and should we expect sequential growth Q3 versus Q2 given the impact?

Patrick Johnson, President of Lilly International, Lilly: The change with CVS was effective 7/1. I just want to point out, it’s not the entire book of business with CVS. It’s a template business. We shared in the earnings call that we expect approximately 200,000 patients to be impacted. First and foremost, we believe that’s a wrong policy decision. We believe in open access. We believe putting 200,000 people in the position that they need to switch from a medicine that they are responding well to is not good for patients and has not been very well received at the health care provider or employer level either. What we saw was that in late June and early July, we saw some patients switching from Zepbound to Wegovy. Still maintained the TRX and MDRX leadership position by far. Now, pretty much we have gone through July, August. We are in September.

We expect that most of those patients have gone through the time point when they need to renew that prescription. We believe that the impact on existing patients has probably been seen now. When we look at the performance in August, we look into the IQVIA, the weekly shadow market performance. We are back to strong growth in both TRX and MDRX. We are having 60% of the market in TRX and even more in MDRX. I think most of that impact has been seen. What has happened? First, around 20% of those patients that are receiving Zepbound today in the U.S., they have earlier been treated with Wegovy. I think they are probably relatively well positioned to be approved for a medical exception. Secondly, we saw some big employers that actually resisted accepting the change. They were exempted from the policy change effective 7/1.

Thirdly, we launched also Vials 12.5 and 15 milligrams with a cut pricing of $4.99, assuming that people refill within the recommendations in the self-pay journey program. I think the Vials gained some of those patients as well. When you look at the market share performance today, you can see that the loss on Zepbound auto injector is not entirely going to Wegovy. Actually, a big part of that is going to Zepbound Vials. In essence, there has been some impact. We expect it to have some impact during the remaining part of the year as well, but that has all been built into our guidance for 2025.

Surina Chen, Analyst, Wells Fargo: OK. Just looking to last year, you guys had really strong momentum in the first half of last year. We saw a couple of rare guidance misses. Thinking about this year, can you talk about just why this time around will be different in terms of how you set the guidance?

Patrick Johnson, President of Lilly International, Lilly: Our process hasn’t changed. We applied the same process last year. It’s a bottom-up forecast, and we look at the underlying trends across the entire portfolio. We look at the known uncertainties at that point in time. That’s what we have done this year as well. We are coming out with a range of potential outcomes, and our point estimate is within that range that we communicate externally. It’s important to reflect on 2024. 2024 was a very unpredictable year for many reasons. First and foremost, we saw a demand that quite a few times exceeded supply. As a result of that, we gated launches outside U.S. launches, and we also stopped at times our promotional efforts. We didn’t start our consumer activation efforts until very late 2024. I think we had a lot of uncertainties in 2024. We don’t have those this year.

We are out of the supply constraints that we experienced the first half of 2024. We’re no longer gating launches. I think we have so much more certainty in terms of the guidance for 2025. It’s very different. We feel good with the guidance we have been providing for 2025.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. Great. Maybe let’s just touch upon a little bit on the access situation. I’m sure you are in the thick of discussions right now. How you’re thinking about the 2026 access situation? Is it materially changing both for, I mean, diabetes you have sorted, but more for the weight loss category?

Patrick Johnson, President of Lilly International, Lilly: Yeah. As I said, diabetes looks very good. We have more than 90% coverage, including Medicare. In chronic weight management, and I talk from the U.S. right now, we have closed open coverage with two or three big PBMs until the end of 2026. That’s what Mike shared earlier. We continue to discuss with CVS. We’ll see where that ends. Open access to all three, but closed until the end of 2026. I think the other very important component here is the employer opt-in. We have stated very clearly from the beginning since the launch of Zepbound, we expect employer opt-in to take much longer time. In the beginning of this year, we were at approximately 50% employers opting in to chronic weight management. We estimate that today we are at the level of 55%.

Currently, there are benefits discussions going on with more or less all employers across the U.S. for the design of 2026. We are hoping that we will make even further progress over the coming weeks and months. There are also some new innovative models for employers that have been launched. I think the most recent one was the Aethernoff model by ESI. That’s the model where employees are also chiming in $200 a month. That could be one model that could get employers that have been hesitant to opt in in the past to take the step and opt in on chronic weight management as well. Nevertheless, I don’t think you should expect a dramatic move up in 2026. You should expect that to gradually improve. I think when we talk about Medicare, that would require some legislative actions.

We know that there are some movements in that space with strong bipartisan support. It’s really hard to predict. For us, as I shared earlier, outcome data is key here. With Medicare, we are in negotiations for 2026 to get OSA covered for that patient population. Until today, we have seen actually quite a high extent of medical exceptions for OSA. We would like to get broader coverage for OSA as well. We will see how successful we can be in that space. We have seen benefits of OSA in Medicaid. When we look in Medicaid today, we have 14 states that cover both chronic weight management and obstructive sleep apnea. We have 21 states that cover OSA only. That’s a smaller part of our business. We have some good Medicaid coverage as well with 65% of the population being eligible today. That’s pretty much the outlook for 2026.

Commercial, quite predictable. In the Medicare space, it depends on how well we can negotiate on OSA in Medicare.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: It was not included for July 1, but that doesn’t mean that you are still in discussions for those Medicare inclusion of OSA at this point?

Patrick Johnson, President of Lilly International, Lilly: We are in discussions for Medicare coverage. It’s still too early to guess how that’s going to end, but we’re doing what we can in that space.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. Very helpful. Let’s just talk a little bit about going back to the international side. Your competitor has more supply now. Are you seeing anything from that increased supply? Is there a higher price competition going forward or any pricing pressure because they have more supply now?

Patrick Johnson, President of Lilly International, Lilly: The mid to high single-digit price decline that Mike referred to for 2025, that’s not new. That is pretty much the picture that we have seen in the previous years as well. We expect that that’s pretty much going to be the pace moving forward as well to ensure that we can continue to compete for good access. In certain markets like China, we have seen increased competition. For us, it has always been a matter of differentiation. We believe that differentiation is the first line of offense. In most markets outside the U.S., Mounjaro for chronic weight management is being priced at a premium compared to the competition. Still, we are the market leader in most markets where we have launched already today in chronic weight management. What we have heard, at least from the competition publicly, is that Novo Nordisk, they have been around for quite some time.

They also seem to be taking quite a disciplined approach to pricing. That is how we look at it, and that is how we assume it’s going to be over the coming years as well.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. One interesting aspect of international markets is there’s no PBM dynamic there, right? You have a better product, right, than when you think about it. Is there a better shot at winning there in that regard compared to your competitor? Because pricing delta, whatever it is, you have a better benefit on both chronic weight management and diabetes.

Patrick Johnson, President of Lilly International, Lilly: Yeah. You know that I think the challenge is probably slightly different outside the U.S. because we are still very early on in gaining reimbursement, and more or less all of those systems are universal health care systems. I think with type 2 diabetes, I think the outlook in terms of good coverage is much more optimistic than chronic weight management. I think in a year from now when we are here, I believe we will have coverage for type 2 diabetes in quite a few of the international markets. Chronic weight management is going to be more of a heavy lifting. I think those outcome data that we referred to earlier will play a significant role in getting coverage for obesity outside the U.S. The bar is set extremely high for patients.

In the U.K., the NHS is reimbursing obesity if you have a BMI above 40 and four comorbidities. Japan is also reimbursing obesity, but they have what they call the optimal use guidelines with only certified centers, and those are in the urban areas, of course. You need to go through a six-month diet and exercise training with a certified dietitian, and those are patients that have actually tried diet and exercise multiple times before. I think for the foreseeable future, the chronic weight management business is going to be out of pocket outside of the U.S. That’s the way we see it, and we have been competing very successfully with a premium price in that space. That’s our assumptions moving forward as well.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. Very helpful. Can you touch upon the recent launches of Mounjaro in India and China? I mean, how they are progressing and when they are a big market, but at the same time cost-conscious market? How do you think progress?

Patrick Johnson, President of Lilly International, Lilly: Yeah. We launched fully in both India and China in Q2. It’s still very early days. At the high level, I would say we are pleased with the uptake, and we are performing in line with our expectations in both of those markets. I think there are some similarities in terms of generic competition in those markets. We have seen in China, for example, MasterTide has launched. It’s priced significantly below Zepbound in China, but we are competing very strongly there. When you look at the data of the competition, it’s very often short-term data or significantly shorter-term data. The MasterTide trial program lasted for 48 weeks, and you had 4 and 6 milligrams approved. Weight loss is 11% and 13%, if I remember correct. You compare that or contrast to what you see with tirzepatide. You have a weight loss above 20%.

You probably also have a side effect profile that is different, favoring tirzepatide. Lastly, with MasterTide, you target liver fat specifically, but with tirzepatide, you target adipose tissue. I think it has been very well received by both providers and consumers. I just came from China. I was there at a major chronic weight management meeting last Saturday, and we had more than 12,000 health care providers connecting. The way they are presenting the benefit of a GIP component, and they recognize that not all incretins are the same. Dual agonists versus single agonists, that actually matters.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. Very helpful. I want to touch upon the non-incretin side of the business as well. Can you talk a little bit about what are the most exciting opportunities that investors may be missing in the non-incretin side of the business, especially when it comes to ex-U.S. markets? I mean, you have an INI portfolio. You have a nice oncology portfolio. Talk a little bit about that.

Patrick Johnson, President of Lilly International, Lilly: Yeah. Maybe I start with oncology. Mike, you can chime in here. You know that I think the oncology franchise starts to get really exciting. When I look at the early stage pipeline as well, I think there are quite a few assets to keep an eye on both in ovarian and breast cancer. With the launched medicine, just the last week’s announcement, the top line data of Monarch-E, the seven-year data, you know that’s quite amazing. Being able to present data along those lines at seven years for high-risk early breast cancer, I think that’s going to be extremely beneficial to drive both a higher penetration and a higher share in that segment for Verzenio. I also believe Jaypirca. We started with the MCL launch, a small patient population in most markets. We just presented the phase 3 data from the BRUIN trial.

I think that’s quite impressive as well. We got the approval for TLL in Europe. We have launched in Germany, Brazil, Japan, extremely well received in the marketplace. I would keep an eye on the oncology franchise. Neuroscience, I think most people are quite well aware of what’s going on. It will take some time. What we see outside of the U.S. is very much similar to what we see in the U.S. Positive signs of ecosystem improvement, both in terms of detecting, diagnosing, and treating Alzheimer’s disease. Of course, the preclinical data is going to be extremely important when it reads out. It’s an event-driven study. Lastly, I would say immunology. EBLU is doing very well. We have seen it in the U.S. Now, we have a partner with responsibility for the European markets. That was a part of a deal when we acquired Dermira.

Wherever we have launched EBLU, it performs very well in atopic dermatitis. I think it’s well positioned to become a first-line treatment as an IL-13 in treating atopic dermatitis. We have a couple of other indications in phase 3 as well. Also, Omvo, we just got the Crohn’s disease indication approved. Strong performance outside the U.S. It looks like the longevity of the ulcerative colitis data here appeals quite a lot to health care providers. There is a lot of focus on incretins. I would say there is a lot of exciting movements across the other disease areas as well. That part of the business outside the U.S. is also very healthy.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: You want to add something?

Mike Czapar, Head of HR, Lilly: The only thing I’d add is probably the combination of outside of cardiometabolic and incretins is that we’re beginning some clinical trial work looking at incretins for non-cardiometabolic use. Be it substance abuse disorders, pain, psychiatry, there’s a lot of preclinical and real-world evidence that suggests that’s interesting. Those are new ideas, kind of higher risk, but we’ve started some. We’ll have probably more to come in the quarters to come.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Two last housekeeping questions. One is, what is the latest on the compounder lawsuits? What could we hear from that? Number two, how are you thinking about IRA for the competitor product at this point?

Mike Czapar, Head of HR, Lilly: Sure. I’ll take the first. Patrick can talk about IRA. There was a ruling last week on two specific cases. It didn’t go in Lilly’s favor. However, we do have the opportunity to re-present with new facts. The legal team is assessing different opportunities, and we’ll have some response there. I think broadly, our legal team is pursuing a number of different bad actors in terms of trying to drive compounding out of the market. We’ve been successful in getting injunctions in a number of cases. They’re looking broadly at the different arguments, the different types. It will continue to be probably a fragmented and long battle. They’re chasing all those down.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it.

Patrick Johnson, President of Lilly International, Lilly: On IRA, I think it’s hard to speculate here. We have never seen an outcome of an IRA discussion with the current administration. I think the higher the rebate would be, of course, the bigger would the impact be. We are talking about Medicare and Medicaid in 340B. We believe that what we have seen earlier when it comes to pricing negotiations of Medicaid, we would probably see very much a similar pattern here on IRA impact. There would be some impact of the Medicare and Medicaid in 340B business. That’s around 20% on our side. We don’t foresee a spillover to the commercial side because we haven’t seen that in the previous Medicaid negotiations. Those are the assumptions we are making regarding IRA.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Got it. One last question. I always ask this question. You have a first time. Fast forward one year. I hope you are here. I hope I am here. What would make you sit here in 2026 and look back at the year and say, this was a great year for us?

Patrick Johnson, President of Lilly International, Lilly: I think from my side, we had quite a few discussions yesterday and a high degree of engagement. I think that’s always important when we dedicate a couple of days to be at health care conferences that there is a high degree of engagement. We saw that yesterday through all the meetings we attended. I think that’s an important factor, and that’s something that we are heavily taking into consideration when we are planning for the next year as well.

Mike Czapar, Head of HR, Lilly: I guess I’d say between now and this time next year, we’ll have a number of late-stage trials we’ll read out across Orforglipron, Retatrutide, as well as I hope that the early to mid-stage portfolio also, the substrate comes into a bit more focus to really give people a view of what we’re excited about that’s going to drive growth in the future. A lot of investment, a lot of opportunity, and we’re excited about driving growth in the future.

Mohit Bansal, Biotech and Pharma Analyst, Wells Fargo: Awesome. On that high note, thank you very much for joining us today.

Patrick Johnson, President of Lilly International, Lilly: Thank you.

Mike Czapar, Head of HR, Lilly: Thank you.

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