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pww.comEli Lilly and Company Presents at J.P. Morgan 42nd Annual Healthcare Conference 2024, Jan-09-2024 02:15 PM - NYSE:LLY

NYSE:LLY

David A. Ricks [Chairman, CEO & President] 💬

David A. Ricks, the Chairman, CEO, and President of Eli Lilly and Company, presented at the J.P. Morgan 42nd Annual Healthcare Conference on January 9, 2024. He discussed various aspects of the company's performance, strategy, and future plans. Here is a detailed summary of his statements:

Opening Remarks

  • Ricks thanked Chris Schott for the introduction and expressed excitement about the fireside chat.
  • He mentioned that it had been a while since he gave a slide presentation, with the last one dating back to 2018, the year Chris Schott recommended buying Lilly stock.

Company Performance Overview

  • Ricks highlighted that over the past six years, Lilly has experienced significant growth:
    • Revenue has increased by 50%.
    • Operating income has doubled.
    • Stock price has risen by 653%.
  • He attributed the growth to successful R&D and innovation efforts, as well as margin expansion.

R&D and Innovation Excellence

  • Ricks outlined five key factors contributing to Lilly's success in R&D:
    1. Focus: Lilly maintains a tight therapeutic focus, allowing for expertise and consistent decision-making.
    2. Speed of Pipeline Development: Lilly has reduced drug development and preclinical time by 50%.
    3. Discipline in Investment: Lilly has steadily increased investment in R&D, even during challenging periods.
    4. External Innovation: Lilly has ramped up external innovation through acquisitions and partnerships.
    5. Discipline on Targets: Lilly persists with promising scientific ideas, exemplified by the journey of incretin-based therapies.

Productivity and Pipeline

  • Ricks noted that Lilly's productivity is measured by input versus output, with the company spending approximately $50 billion and producing nearly $250 billion in NPV.
  • He acknowledged that Lilly aims to grow its R&D investment while sustaining productivity, a challenge few companies have achieved.

External Innovation and M&A Strategy

  • Ricks emphasized that Lilly is open to external innovation and has more than 50% of its pipeline sourced externally.
  • He discussed Lilly's approach to M&A, focusing on acquiring not just assets but also talent and methodologies.
  • Ricks mentioned the importance of working with early-stage biotech companies through initiatives like Gateway Labs and Lilly Ventures.

Future Growth Strategy

  • Ricks stated that Lilly needs to pursue big ideas to address significant unmet needs in large populations.
  • He highlighted the importance of maintaining high standards for Lilly medicines and increasing the breadth of partnerships.
  • Ricks mentioned Lilly's focus on nucleic acid therapeutics and the need to attract talented individuals to the company.

Financial and Operational Outlook

  • Ricks commented on the company's financial performance, noting that core growth in Q3 was 23%.
  • He mentioned that the company is in a launch cycle with significant investments in marketing and R&D, particularly in Phase III programs.
  • Ricks addressed concerns about R&D spending, emphasizing the importance of scaling R&D productively.

Mounjaro and Zepbound

  • Ricks provided updates on Mounjaro and Zepbound, highlighting the importance of access and execution for Mounjaro and the smooth rollout and manufacturing for Zepbound.

Supply and Access

  • Ricks discussed the challenges and opportunities related to supply and access for obesity treatments, noting that the demand for these therapies is growing.
  • He mentioned the ramping up of manufacturing facilities like RTP and the potential impact of oral incretin therapies.

Competition and Market Dynamics

  • Ricks acknowledged the presence of competition, particularly from Novo Nordisk, and the potential entry of new players into the obesity market.
  • He expressed confidence in Lilly's position and the potential for oral incretin therapies to significantly impact the market.

Donanemab and Alzheimer's Disease

  • Ricks expressed enthusiasm about the potential of donanemab for treating Alzheimer's disease, citing positive data from the TRAILBLAZER trial.
  • He discussed the potential for donanemab to be used preventively, given the high conversion rate of individuals with high amyloid and no symptoms progressing to Alzheimer's.

Closing Remarks

  • Ricks concluded by thanking the attendees and reiterating Lilly's commitment to making life better through its innovative medicines.

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