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pww.comEli Lilly and Company Presents at Evercore ISI 3rd Annual HealthCONx Conference, Dec-01-2020 02:40 PM - NYSE:LLY

NYSE:LLY

Michael B. Mason [Former EVP & President of Lilly Diabetes] đź’¬

Here’s a detailed summary of Michael B. Mason’s statements during the Eli Lilly and Company presentation at the Evercore ISI 3rd Annual HealthCONx Conference:

Opening Remarks

  • Appreciated everyone's interest in Lilly Diabetes and thanked attendees for joining.
  • Mentioned the importance of staying safe and healthy during the COVID crisis.

Impact of COVID on Lilly Diabetes

  • Highlighted that the biggest impact in 2020 was the COVID pandemic on people with type 2 and type 1 diabetes as well as healthcare providers.
  • Noted that the pandemic forced the industry to improve digital marketing skills and virtual engagements to better educate healthcare professionals about Lilly Diabetes products.

Changes in Commercial Side

  • Acknowledged the onetime adjustment in Q3 2020 that impacted Trulicity's pricing mix.
  • Explained that rebates to maintain access are not a new phenomenon, but consolidation in the pharmacy benefit manager (PBM) space led to rate harmonization, which increased rebates for some prescriptions.
  • Stated that Trulicity and Jardiance have great access (over 90%) and leading market shares in their respective categories.

Segment Mix and Pricing Impact

  • Discussed the natural progression of product access, starting with commercial, followed by Part D, and then Medicaid.
  • Mentioned that Trulicity’s share in Medicaid is lower compared to commercial and Part D, but expects to catch up by the end of the next year.
  • Guided that the impact on Trulicity’s pricing in 2021 would be in the high single digits due to segment mix.

Executive Orders and Pricing Reform

  • Believed that Part D rebate reform would be the most likely proposal to impact patients positively by reducing out-of-pocket costs.
  • Criticized policies that look outside the country to set pricing levels, particularly for medications like cancer treatments, emphasizing the importance of innovation and addressing unmet needs.

Impact of Part D Reform on Lilly

  • Suggested that the impact of Part D reform would be more significant on patients’ copays rather than on Lilly’s net price.
  • Indicated that Lilly would evaluate the need for copay assistance if Part D reform is implemented.

Insulin Affordability Initiatives

  • Described initiatives aimed at closing gaps in the system for uninsured, high-deductible plan enrollees, and Part D beneficiaries.
  • Announced the Insulin Value Program and work with CMS on the Senior Savings Model to cap out-of-pocket expenses for Lilly insulin at $35 per month.

Growth in the GLP Class

  • Noted that the GLP class continues to grow, driven by the increasing use of GLP-1 products as the first injectable for type 2 diabetes patients.
  • Emphasized that 40-45% of Trulicity use is in combination with basal insulin, highlighting its versatility.

Tirzepatide

  • Positioning tirzepatide as a foundational product for managing metabolic health, offering A1c benefits, weight loss, and potential cardiovascular and NASH benefits.
  • Expected healthcare professionals to make decisions about transitioning patients from Trulicity to tirzepatide based on patient needs and clinical data.
  • Anticipated that tirzepatide would be positioned as a foundational treatment, not just for transitioning patients from Trulicity.
  • Addressed the Phase III SURPASS program, highlighting the ability of tirzepatide to return patients to normal A1c levels.

Comparison with Competitors

  • Commented on Novo Nordisk’s SUSTAIN FORTE trial, noting that Lilly was not surprised by the modest improvement in weight loss, emphasizing the benefits of dual agonists like tirzepatide.
  • Expected variations in A1c and weight loss in Phase III trials based on patient profiles and treatment backgrounds.

Tolerability and Titration

  • Noted that clinicians prefer the flexibility of dose escalation and do not view it as complexity.
  • Suggested that in the real world, titration would be more gradual, with patients staying on a lower dose until additional benefits are needed.

Obesity and NASH

  • Explained that the obesity and NASH programs started later than the diabetes program.
  • Expressed excitement about the potential of tirzepatide in these areas, despite the longer timeline for definitive readouts.

Other Pipeline Programs

  • Highlighted the triagonist (GLP, GIP, and glucagon) program for its potential breakthrough weight loss.
  • Discussed the weekly basal insulin program, emphasizing its flat peak-to-trough ratio and potential to improve patient compliance and efficacy.
  • Mentioned the oral GLP program (Chugai molecule), noting its potential for improved bioavailability and reduced food effects compared to Rybelsus.
  • Briefly touched on oxyntomodulin, a combination of GLP and glucagon, and its potential for sustained weight loss and liver benefits.

Basaglar

  • Explained that the leveling off of Basaglar sales was due to access challenges, including losing some Medicaid states and UnitedHealthcare.
  • Noted that Semglee (biosimilar competition) has not impacted the market significantly due to lack of payer access.

Closing Remarks

  • Expressed gratitude for the opportunity to present and wished everyone safety.

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