Eli Lilly and Company Presents at Goldman Sachs 41st Annual Global Healthcare Conference, Jun-10-2020 11:10 AM - NYSE:LLY

NYSE:LLY

Joshua L. Smiley [Former Executive Officer] 💬

** Key Points from Joshua L. Smiley's Presentation**

Customer Interaction: Increased reliance on digital tools for customer interaction, including Zoom calls and virtual peer-to-peer events. Both the company and customers are more receptive to these digital methods.
Telemedicine: Greater acceptance and use of telemedicine, which improves efficiency and effectiveness in healthcare delivery.
Personal Health Emphasis: Increased focus on personal health due to the impact of underlying conditions on COVID-19 outcomes.
Clinical Trials: More efficient and effective clinical trials with reduced patient travel to clinical sites, using digital monitoring and home-based trials.
Scientific Platforms: Leveraging advanced scientific platforms like mRNA, gene therapy, and artificial intelligence to develop treatments, including the study of baricitinib for COVID-19.

Initial Confidence: Reiterated guidance early in the pandemic due to strong performance of new products launched since 2014.
Healthcare Utilization: Expected a sharp decline in healthcare utilization from March to mid-second quarter, with normalization by the end of Q2 or Q3.
Unemployment Impact: Anticipated modest payer mix impacts in 2020, with more significant effects in 2021.
Current Trends: Health care utilization and prescription trends are recovering, with the U.S. expected to return to pre-COVID levels by the end of June.

No Major Payer Mix Changes: No significant changes in payer mix despite high unemployment, partly due to the nature of industries affected and furloughed employees maintaining commercial insurance.
Increased Utilization: Increase in utilization of patient assistance programs, driven by better outreach and program effectiveness rather than direct COVID-19 impacts.

Operating Margin Target: Aim to achieve a 31% operating margin in 2020, with expectations to increase to the mid- to high 30s by 2025.
Margin Expansion Drivers:
- Top-line growth in competitive areas.
- Efficient use of fixed SG&A base.
- High-margin new product launches like Retevmo.
- Improved sales rep effectiveness with digital tools.
Challenges: Need to manage price headwinds and maintain gross margins.

Agnostic to Development Stage: Open to acquiring or partnering with projects at various stages, focusing on best or first-in-class opportunities.
Therapeutic Areas: Focused on five key areas, including neurodegeneration, covering over 50% of human disease.
Acquisition Opportunities: Interested in late-phase products like Dermira and transformative deals like Loxo.
Future Launches: Need a robust pipeline to support long-term growth, with a focus on the 2026-2030 period.

Retevmo: Launched virtually with a limited prescriber base, focusing on lung and thyroid cancer. Positive early reception and existing relationships with key physicians.
Verzenio: Confident in the adjuvant setting despite the negative PALLAS trial results, due to differences in patient populations and trial design.
Diabetes Portfolio:
- Trulicity: Expecting strong NBRx recovery and continued growth, driven by REWIND data and high-dose Trulicity launch.
- Rybelsus: Reasonable launch performance, with expectations for improved performance in 2021 as commercial efforts intensify.

Antibody Testing: Two antibodies in human testing, expecting initial results by the end of June or early July.
Potential Applications: Focus on both single and combination therapies, with a particular emphasis on protecting high-risk patients before and after vaccine availability.