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pww.comEli Lilly and Company Presents at Cantor’s 2020 Global Healthcare Conference, Sep-17-2020 08:40 AM - NYSE:LLY

NYSE:LLY

Joshua L. Smiley [Former Executive Officer] 💬

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

  1. 2021 Outlook and Health Care Utilization

    • Health care utilization is expected to return to pre-pandemic levels by the end of 2020.
    • The company anticipates double-digit volume growth in 2021 with limited patent or generic competition.
    • Pricing environment is expected to remain stable with low to mid-single-digit net price erosion.

  2. Political and Policy Considerations

    • The company is preparing for various political scenarios, focusing on ensuring patients benefit from pricing discounts.
    • Executive orders, such as the most-favored nation piece, are viewed as detrimental but are expected to be difficult to implement.

  3. COVID-19 Treatments and Vaccines

    • Data from the Olumiant and remdesivir combination showed improved recovery times for hospitalized patients.
    • Interim data from the antibody approach with AbCellera showed a significant reduction in hospitalizations.
    • Partnerships with Amgen and others are aimed at increasing manufacturing capacity for antibodies.

  4. Therapeutic Areas of Focus

    • Oncology: Launch of Retevmo, a RET inhibitor, and positive data from Verzenio for early breast cancer.
    • Endocrinology: Continued growth of Trulicity and Jardiance.
    • Immunology and Neuroscience: Strong pipelines with multiple products in development.

  5. Pipeline Priorities

    • Tirzepatide is a key focus, with Phase III data expected to show significant HbA1c reductions and weight loss.
    • Investment in first-in-class or best-in-class products to ensure long-term growth.

  6. Capital Allocation and M&A Strategy

    • Priority is to fund internal projects, followed by external bolt-on acquisitions.
    • Interest in gene therapy and cell therapy, with plans to explore partnerships or acquisitions.
    • Avoiding large-scale acquisitions, focusing on strategic, smaller deals.

  7. Global Expansion

    • Enhancing global position, particularly in China, where sales are expected to grow significantly.
    • Aim to achieve a more balanced global sales distribution, targeting a 50-50 split over time.

  8. Patient Affordability Programs

    • Increased utilization of affordability programs, especially for insulin, with a goal to make insulin accessible for $35 a month.
    • Economic impacts from the pandemic, leading to shifts in insurance coverage, are expected to cause a modest pricing headwind in 2021, primarily affecting diabetes products.

  9. Supply Chain and Inventory Management

    • Successful maintenance of manufacturing operations during the pandemic, ensuring no inventory issues.
    • Preparedness for potential resurgences and flu season, with confidence in meeting demand.

  10. Vision for the Future

    • Excitement about the company's strong product portfolio and scientific advancements.

    • Focus on ensuring global access to drugs, addressing affordability, and continuing to develop the next generation of products.

    • Hopeful for positive outcomes in Alzheimer's research.

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