The Readout Loud 337: Eli Lilly CEO on Trump, obesity drugs, and a guidance miss
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Jan 15, 2025 Dave Ricks, CEO of Eli Lilly, shares insights from the J.P. Morgan Healthcare Conference. He discusses the challenges of pricing and accessing GLP-1 obesity medications, despite high demand. Ricks delves into the implications of the Inflation Reduction Act on drug pricing and regulatory hurdles. He emphasizes the importance of business relationships with the incoming Trump administration and aims for Eli Lilly to reach a trillion-dollar valuation in healthcare. The conversation also touches on significant biotech M&A activities and the evolving landscape of drug development.
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Lower than Expected Sales
- Lilly's Q4 2024 sales fell short of expectations due to lower sales of Mounjaro and Trulicity.
- This was caused by wholesaler destocking and a diabetes market slowdown, despite high demand for GLP-1 drugs.
2025 Guidance Exceeds Expectations
- Lilly's 2025 revenue guidance exceeds consensus, predicting 32% growth driven by GLP-1 drugs and new launches.
- Growth is also fueled by international expansion into markets like China and Brazil and new indications for existing drugs.
Impact of Compounding
- Compounding of GLP-1 drugs is prevalent due to cost pressures and broader eligibility criteria.
- Dave Ricks expresses concerns about the safety of compounded drugs and emphasizes the need for increased insurance coverage.