Eli Lilly and Company (NYSE:LLY) Q4 2022 Earnings Call Transcript

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Operator: The next question is from Seamus Fernandez from Guggenheim. Please go ahead.

Seamus Fernandez: Great. Thanks for the question. So Dan, I wanted to ask you if you could talk a little bit about where you see the oral GLP-1 space developing and how your product is likely to be positioned. A little bit of this I think is also what you think the unmet need is outside of where the, sort of, very robust weight loss that we see from Mounjaro is. And then just an add-on to that how do you see the oral market developing in terms of other potential agonists? Is that something that Lilly is pursuing and hoping to further develop combinations there as well? Thanks.

Dave Ricks: Thanks, Seamus. We’ll go to Dan on this question.

Dan Skovronsky: Thanks, Seamus. I’ll get started. Maybe Mike wants to add on some of the marketplace questions. But clearly obesity is a huge problem in the US and around the world. I think 100 million Americans potentially with obesity and reaching one billion people around the world pretty soon. That’s probably not a market that even all of the interested companies could address solely with injectables. So just given the scope of the problem around the world we’re going to need orals. Ultimately it’s our goal to have orals that can match the safety tolerability and efficacy of injectables. I think our oral GLP-1 is our first attempt in this space and has really good prospects for meeting that initial goal. But then noting of course that the injectables are going to get better over time and the orals will catch up as well.

The second part of your question was how do the orals catch up. And I think you’re sort of alluding to an obvious issue, which is right now our oral GLP-1 and other orals in the space are single mechanism, single incretin agonists. I think, we’ve seen with great drugs like Trulicity and competitive products what single agonist against GLP-1 can achieve. It’s not as good, I think, as what can be achieved with dual agonism for tirzepatide or hopefully even triple agonism with GGG. And so you can bet, we’re working on oral solutions that can bring additional incretin activity to patients in a pill. Nothing ready to disclose today but we’re working hard.

Joe Fletcher: Okay. Thanks, Dan. All right. Lois, next question.

Operator: Next question is from the line of Geoff Meacham from Bank of America. Please go ahead.

Geoff Meacham: Good morning, guys. Thanks for the question. I have two related ones on tirzepatide. Dan I know you have SURMOUNT-4 coming up which is the maintenance study but how has your thinking evolved if at all on the potential duration of tirzepatide use either based on longer exposure from clinical studies or in the real world? And do you think that could inform payer discussions. And then Mike on Mounjaro a moving target, but how does the prescriber base as of today compare with Trulicity. I’m trying to get a sense for maybe the endocrinology versus primary care mix and utilization in obesity? Thank you.

Joe Fletcher : Great. Thank you, Geoff. So we’ll go to Dan for the question on SURMOUNT-4 and duration of tirzepatide and then to Mike on the question of how the prescriber base from Mounjaro compares to Trulicity.

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