Q1 2025 Eli Lilly & Co Earnings Call
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Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to the Lilly Q1 2025 earnings conference call. At this time all participants are on a listen only mode. Thank you very much.
Speaker Change: Later we will be conducting a question and answer session and instructions will be given at that time Should you require assistance during the call please press star then zero and an operator will assist you offline I would now like to turn the conference over to your host Mike Czapar, senior vice president of investor relations, please go ahead
Speaker Change: Good morning. Thank you for joining us for Eli Lilly and Co. Q1 2025 earnings call. I'm Mike Czapar, Senior Vice President and Investor Relations. [inaudible]
Dave Ricks: Join me on today's call or daybricks, Louise Chen and C.E.L. Lucas Montarce, Chief Financial Officer. . . . .
Dave Ricks: Dr. Dan Scaronsky, Chief Scientific Officer and President of William & The Immunology. Thank you.
Dave Ricks: Anne White, President of Bluey Neuroscience, Ilya Yuffa, President of Bluey International, Jake Van Narden, President of Bluey Oncology, and Patrik Jonsson, President of Cardio Minabalek Health, and Bluey USA. We're also joined by Mark Keeman, West Tall, and Y Wong of the Investor Relations team. We're also joined by Mark Keeman,
Dave Ricks: During this conference call, we anticipate making projections and for living statements based on our current expectations. Thank you very much.
Dave Ricks: Our actual results could differ materially due to several factors including those listed on slide four. Additional information concerning factors that could cause actual results to differ materially is contained in our latest form 10K and subsequent filings with the SEC.
Dave Ricks: The information we provide about our products and pipeline is for the benefit of the investment community. It is not intended to be promotional and is not sufficient for prescribing decisions.
Dave Ricks: As we transition to our prepared remarks, please note that our commentary will focus on our non-GAAP financial measures. Now I'll turn the call over to David.
Dave Ricks: Thank you, Mike. Q1 was another exciting quarter. We increased our revenue, advanced our pipeline, invested to drive future growth, and shared the first phase-3 clinical data from our oral GLP1, or forgobron.
Dave Ricks: Daniel Shermore and details are in the R&D update, but we're pleased with results from the Achieve One trial for Holford Pran in patients with type 2 diabetes.
Dave Ricks: Dean's Data, Met our Expectations, and the first set delivering our role goal for the program.
Dave Ricks: Davis, which is to create a medicine that offers injectable GLP-1 like efficacy, safety and tolerability, with the convenience of a once-daily pill that can be manufactured at scale to meet global demand.
Dave Ricks: David. This scientific breakthrough has the potential to eventually impact hundreds of billions of people around the world with chronic diseases. And we expect phase 3 data from the seven global clinical trials to read out over the next 12 months across type 2 diabetes and obesity.
Dave Ricks: We also expect potential regulatory submissions for obesity to begin worldwide at the end of 2025.
Dave Ricks: On slide 6, we list Q1 financial metrics and highlight progress related to our strategic deliverables.
Dave Ricks: Revenue Group 45% compared to Q1 of 2024. Our key products to find is Eglis, J. Perka, Kisamla,
Dave Ricks: Rosenio and Seth Bound, drew by more than $4 billion, and now account for $7.5 billion of revenue for the company. Thank you very much.
Dave Ricks: In addition to the affordable front readout, we achieved several other key pipeline milestones this quarter.
Dave Ricks: James, they include the approval of Jay Perka in the EU for CLL, the approval of Armbo in the US, EU and Japan for Crohn's disease and the initiation of a phase 3 program for Olimarassib. Thank you very much.
and resected Edgiment Non Small Cell Lung Cancer.
Dave Ricks: We also shared plans to more than double our manufacturing investment in the U.S. In total, we've announced over $50 billion of new U.S. manufacturing investment since 2020.
Dave Ricks: Including our most recent announcement to build four new facilities of which three will be API or active pharmaceutical greeting facilities.
Dave Ricks: Lastly, we distributed $1.3 billion to dividends in the first quarter and executed a $1.2 billion share repurchase.
Dave Ricks: We realize there's a lot of investor focus right now on tariffs and trade, so I'll make a few comments that reflect our current views on these complex and quite dynamic matters.
Dave Ricks: We support the US government's goals to increase domestic investment. However, we don't believe tariffs are the right mechanism.
Dave Ricks: Enhance tax incentives, or and or the extension of the tax cut and job act are better tools to achieve their goals.
Dave Ricks: The announcement, the announcement tariffs currently in effect do not materially change Lilly's 2025 financial outlook. However, the expansion of tariffs and other geographies or increases in retaliatory tariffs would have a negative effect on Lilly and for our industry.
Dave Ricks: As a company, Lilly has a large U.S. manufacturing footprint with 10 active projects on going to build and expand new sites.
Dave Ricks: Upon completion of our manufacturing agenda, we will be able to supply medicines for the US market entirely from US facilities, as well as increase the volume of medicines we explored.
Dave Ricks: We will continue to execute our U.S. manufacturing agenda however we urge the administration to negotiate deals with key trading partners as soon as possible to level the playing field for American exporters like Lilly and remove harmful tariffs and non-tariff market access barriers in the developed economies.
Dave Ricks: Now I'll turn the call over to Lucas to review our Q1 financial results.
Lucas: Thanks Dave. As shown on the slide seven, Q1 was another strong quarter of financial performance with revenue growing 45% compared to Q1 2024 driven by our key products.
Lucas: Ross Marchen as a percentage of revenue was 83.5% in Q1, an increase of 1% points versus the same quarter last year. This is the end of the video.
Lucas: Gross Margin was positively impacted by improved production costs and favorable product mix, which were partially upset by lower realized prices.
Lucas: marketing selling an administrative expensive increased 26% as we invested in promotional activities to support new lunches across our state of edic areas.
Lucas: R&D expenses increase 8% driven by higher development expenses for late-state assets and additional investments in early-stage research. Thank you very much.
In Q1, we recognized acquired IPR&D charges of $1.57 billion.
Lucas: Frank Miley, related to the previously announced acquisition of Scorpion Therapeutics, P.I. 3K Alpha Inhibitor Program. In total, IPR&D charges negatively impacted earnings per share by $1.72.
Lucas: Our non-gab performance margin, which we define as gross margin less R&D marketing selling and administrative expensive, as a percentage of revenue was 42.6%. An increase of over 11 percentage points from Q1 2024.
Lucas: Awa Q1 effective tax rate was 20.2% The Q1 tax rate was negatively impacted by the previously described non-dedactable acquire IPR&D charges.
Lucas: At the bottom line, we deliver earnings per share of $3.34 in Q1, inclusive of the negative impact of $1.72 from acquired IPR&D charges.
Lucas: These compares to early pressure of $2.58 in Q1 2024, inclusive of 10 cents of acquired IPR&D charges.
Lucas: On a slide A, we quantify the effect of price, rate and volume on revenue growth.
Lucas: U.S. revenue increased 49% in Q1, driven by strong volume growth of our key products including Czapan and Monjaro, partially observed by a 7% declining price.
Moving to Europe , revenue increased 71% in cost and currency.
Lucas: Q-1 2025 was positively impact by a one-time benefit of $370 million, related to further restructuring our alliance with Beringa Ringelheim.
Lucas: Ascluding this benefit, constant currency revenue grew 46%, driven primarily by Moncharo, partially
Lucas: Japan revenue, group 15% in constant currency, with volume growing 16% driven by Monjaro and Jardinsk.
Movin' to China, Q1 revenue increase 21% in constant currency.
Lucas: Volume Gross was primarily driven by Monjaro. As a reminder, we recently initiated a limited Monjaro launch in China with expectation to gradually increase commercial launch in the second half of 2025 as supply becomes available.
Lucas: Revenue in the rest of the world, increased 17% in cost and currency, primarily driven by volume growth from onjaro and to a lesser extent, versenio.
Lucas: Sly 9 provides an update on the performance of our key products.
Lucas: Beginning with Immuneology, we have seen encouraging US apothec of Epilisyn atopic dermatitis.
Lucas: New patient starts are increasing and we are making good progress securing access and reimbursement.
Lucas: Adless is currently covered by two of the largest pharmacy benefit managers and we expect further access improvement later this year. As of May 1st, Adless will be reimbursed on a plan set account for 60% of people who are commercially insured. [inaudible]
Lucas: Porombo, we have received a approval of Crohn's disease across the globe as a second indication. Thank you very much.
Lucas: Commercial Activities is going to drive new patients starts in this larger patient population. Yeah.
Lucas: John . Moving to oncology, Jai Pilka was recently approving Europe for relapse or refractory CLL invasions who previously treated with abit decaying semitone.
Lucas: We anticipate launches beginning in Q2. We also expect readouts from additional Global Phase 3 trials later this year, which we believe will be important to evaluate Chias Birka in earlier settings of CLL, including a head-to-head comparison with the Brutany. Thank you.
Lucas: Bersenio Global Sales Crew 10% in Q1, as Bersenio continues to be the standard of caring high-risk early-risk cancer.
Speaker Change: As expected, we have seen some impact from competition in early breast cancer. However, the senior share of marketing, high risk early breast cancer is stable and total prescription to continue to grow.
Lucas: U.S. Prescription Group by 7% in Q1 partially upset by the host sailor inventory destocking in the quarter.
International Volions for Basin, New York Group 30% in Q1. Thank you for your time.
Lucas: With the neuroscience, Kisandres now are moving 12 countries. We have seen a steady increase in the use of blood-based biometrics. The conversion rates from diagnosis to treatment and the number of new patients starting treatment in both the US and Japan. Thank you very much.
Lucas: While it is encouraging to see progress, we do still expect that it will take some time to build this market.
Lucas: We expect U.S. regulatory action for the modified dos and riches man for Kisun lab in the next few months.
Lucas: Finally, moving to Cardio Metabolic Health, both Monjaron Settman posted a strong revenue growth.
Lucas: Montarce's worth $3.8 billion, more than double the same quarter last year. In the U.S., Montarce actually Q1 as the market leader in new prescriptions within diabetes-increting analogs.
Lucas: Outside the U.S., Monjaro has launched in over 40 countries, and Q1 was another quarter of steady sequential growth.
Lucas: We are recently launching India and Mexico and plan to continue with additional countries throughout 2025.
Lucas: Our focus internationally is on seeking a reimbursement for type 2 diabetes and developing the ecosystem to trade obesity as a chronic disease. [inaudible]
Speaker Change: Seppan Performance was also robust, as sales increased by $1.8 billion to $2.3 billion in the quarter.
Speaker Change: Sepan is the U.S. branded anti-obicity market leader in both total prescription and new prescription, reaching 60% and 74% respectively at the end of Q1.
Speaker Change: We also launched higher dose 7 virus and in two additional doses for patients to access 7 through the cell-page channel.
Speaker Change: The update of 7-1 Biles has been strong and Biles accounted for approximately 10% of total prescription and 25% of new prescriptions in Q1.
Speaker Change: On a slide ten, it's an update on trends in the US-increditing analog market, which includes
Speaker Change: Q1 was another quarter of steady market growth as total prescriptions grew by 46% compared to Q1 2024.
Speaker Change: Lillian performance was strong as a four-week rolling average share of might increase by five percentage points compared to Q4 2024 and by ten percentage points compared to the same quarter last year.
On slide 11, we provide an update on Capital Delocation.
Speaker Change: Moving to slide 12, is our updated 2025 financial guidance. Our performance into one was strong and we are encouraged by the underlying trends we saw across our portfolio of medicines.
Speaker Change: As a result, we are refurming our revenue and performance marching guidelines. Thank you very much.
Speaker Change: Our non-GAAP earnings per share guidance isn't changed, except for Q1 charges related to
Speaker Change: As Dave mentioned, the situation regarding Terence and Torres remains dynamic.
Speaker Change: We continue to monitor the external environment, however, we estimate that the announced tariff, currently in effect, will have a limited impact financially, which we have absorbed within our 2025 guide.
Speaker Change: Now I will turn the call over to Dan to highlight our progress on R&D.
Dan Skovronsky: Thanks, Lucas. I'll start with T-Data from our recently completed Orfer Glyphron Phase 3 trial and provide some context on our development plans and timelines for this important molecule. Thank you very much.
Speaker Change: A previously said that our hypothesis was that Orpher Glyperon could deliver efficacy, safety and tolerability similar to the best scene for available GLP-1 monotherapy injectables.
Speaker Change: I believe the results from achieve one trial support that hypothesis. [inaudible]
Let me start with advocacy.
Speaker Change: Beginning on slide 13, you can see the reduction of 1.3 to 1.6% for hemoglobin A1C. You can see the reduction of 1.6% for hemoglobin A1C.
Speaker Change: James, given the relatively low baseline of 8.0 in this 40-week monotherapy study, patients on the two highest doses ended the study with a mean A1C of about 6.5%.
Speaker Change: similar to the lowest levels achieved in trials of other monotherapy GLP1 Agnes.
Speaker Change: In fact, with Orpher Glippron, more than 65% of patients achieved in A1C less than or equal to 6.5%, which is below the American Diabetes Association's defined threshold for diabetes. Thank you for your time.
Speaker Change: In a key secondary endpoint, or for Glyphron also help people with diabetes lose approximately 16 pounds, or 7.9% of their body weight at the highest dose. [inaudible]
Speaker Change: Steve Dade, our in line with weight loss demonstrated with existing injectable GLP1s in patients with diabetes.
Speaker Change: especially when considering the baseline weight and other demographic factors in this trial. Thank you very much.
given that the study was only 40 weeks in duration. [inaudible]
Speaker Change: Participants had not yet reached a weight plateau at the conclusion of this study. This result is encouraging as we look ahead to our first phase three readout in people with obesity that we expect in Q3. Thank you very much.
Speaker Change: The most common adverse events were gastrointestinal, which is consistent with the GLP-1 class.
Speaker Change: We did not see any hepatic safety issues to achieve one.
Speaker Change: As you can see on slide 14, discontinuations due to adverse events were low with only 4-8% of patients discontinued or for glipron due to adverse events.
Speaker Change: The slow and stepwise dose escalation we utilize in Phase 3 combined with a relatively long about 24 hour half-life of this molecule.
resulted in a tolerability profile that matched our expectations. Thank you very much.
and was consistent with weekly injectable GLP once. [inaudible]
Speaker Change: The Achieve One Full Results will be presented at the ADA's 85th Scientific Sessions and will be published in a pure review to Trump.
Speaker Change: This was the first of several phase three trials that we'll read out for Orfer Glyphron. On slide 15, you can see how achieve one fits into the broader Orfer Glyphron development program.
Speaker Change: Over the next 12 months, we expect to get results from four additional diabetes trials where we're studying more for Glyphron compared to insulin and head-to-head versus other oral diabetes medicines.
Speaker Change: We also expect to get results in our two obesity phase 3 trials.
Speaker Change: One trial and people with obesity without diabetes, and a second trial and people with obesity and diabetes.
Speaker Change: Assuming success in these phase 3 programs, we plan to submit, or for glipron for obesity in Q4 later this year, followed by type 2 diabetes in the first half of 2026.
Speaker Change: We also have an ongoing Phase 3 trial in obesity in the maintenance setting, the Phase 3 trial in obstructive sleep apnea in obesity,
Speaker Change: Lee, and we will initiate a phase three trial and hypertension later this quarter.
Speaker Change: We look forward to seeing more data from this robust clinical development program as we continue to find the impact or for glipron can have for patients.
Speaker Change: Moving on to other R&D updates since our last call. On the regulatory front, following discussions with the FDA, we've withdrawn our U.S. application for the hard failure we preserved ejection fraction indication purchase appetite. Thank you very much.
Speaker Change: D. We believe the positive phase three data from the summit trial do support an indication. However, FDA indicated an additional confirmatory clinical trial is required.
Regulatory Reviews are ongoing in other countries.
continuing with updates in cardio metabolic health.
Speaker Change: We're sharing today plans to initiate a new Phase 3 trial, studying our triple agonist, Reda True Tide, in patients with obesity and chronic low back pain.
Speaker Change: We're also announcing today next steps for our oral once daily program targeting LIFO protein A, Move a Lapland.
Speaker Change: In phase two data, we presented last year, move a lap on lowered lipoprotein A levels by up to 85% at the highest tested dose.
Speaker Change: Based on these data, we plan to initiate a phase three program later this year in atherosclerotic cardiovascular disease and we're excited about the potential to bring what could be the first ever oral small molecule approach for lowering lipoprotein A to patients. [inaudible]
Speaker Change: Movington College, we've now started a new Phase 3 program with Olo Murassib in K-RSG-12C Mutant resected adjuvant lung cancer.
Speaker Change: This is the third potential indication that we're simultaneously pursuing for Olimaracid.
Speaker Change: Across our therapeutic areas, we meet good progress in our early phase portfolio and we advanced five new medicines into phase one clinical trials, as shown on slide 16.
Dave Ricks: I'll turn the call back to Dave for closing remarks.
Dave Ricks: Good, thanks Dan. We know a certain easy fist right now at trade tax in their national relations. [inaudible]
Dave Ricks: While Lilly is actively engaged in shaping the external environment, we're mostly focused on executing our winning strategy, discovering, developing and making new medicines that can help people live healthier lives.
Dave Ricks: We made good progress this quarter, and we are well positioned to deliver strong and sustained growth going forward.
Dave Ricks: Now I'll turn the color to Mike to moderate our Q&A session.
Mike: We'd like to take questions from as many colors as possible. Thank you very much.
Speaker Change: Consistent with proud borders, we will respond to one question for Kohler and we'll end the call promptly at 11 a.m. From Kohler, please provide the instructions for the Q&A session and then we're ready for the first caller.
Speaker Change: Certainly, at this time, we will be conducting a question and answer session. If you have any questions, please press star one on your phone at this time.
We ask that participants today limit themselves to one question.
Speaker Change: If you do have a follow-up question, please read you on the queue by pressing Star One at any time. We also asked about posing your question you please pick up your handset if listening on speakerphone to provide optimum sound quality.
John , please hold what we call for questions.
Speaker Change: The first question today is coming from Assad Hider, from Goldman Sachs, Assad Your Line Is Life.
Thank you.
Speaker Change: Yeah, thanks for the question. You know, we're not surprised that...
So this kind of thing was announced.
Speaker Change: If we look at what's happening in the market, we're pretty deep into a replacement cycle, particularly on obesity. And Terence Epitide, as we pilot on this call, is gaining a lot of market share, basically most of the growth and the categories happening. [inaudible]
with our medicine.
Speaker Change: David. Of course, you know, the private pay market is an important segment. We'd like to grow that segment, and we'd like to grow choice and access in that segment. So we're not interested at all in one of one deals of reducing access and choice for doctors. Thank you very much.
Speaker Change: Anderson in this one case did. Our focus is on making better medicines and more accessible medicine. So,
Jack, excited by the... [inaudible]
Speaker Change: Costility of an Oral that could be more widely distributed around the world and here in the U.S. with GLP1, injectable GLP1 like Profile Lake and Highlighted, and of course on driving.
Speaker Change: Moore Advanced Therapies as well in combination or triple acting agents like Rattachatide. So that's our focus. It doesn't surprise me that this happened and we'll work through it. Recognizing in this case as well, you know, we're talking about. Not that.
Speaker Change: The Templated Lives at CBS , and probably Optin Rates for employers in the template, and part of their book are pretty low compared to the national average just to maybe inform your analysis. And we'll work through it. Let's go.
Speaker Change: Arjaad will be to continue to drive share and reference for our brand. I think the team's done a great job of that. You're to date and we'll continue to focus on that while we wait for the or for launch and read a data later this year.
Okay. Thanks, Dave. Thanks a lot. Next question, please.
Speaker Change: The next question will be from Geoff Meacham from Citibank. Geoff, your line of life. [inaudible]
Jeff Meacham: Courtney guys, thanks for the question, for Dan or for Dave, when you look at the positioning of Orphaglipron, the ultimate goal to have meaningfully more indications than Terence Epitide, just given the oral convenience. Thanks.
Speaker Change: I think when you look beyond just weight loss would seem that a broader cardio investment makes sense, but maybe also perhaps combos and I and I are autoimmune or even neuropsych. Thank you.
Speaker Change: Great. Thanks, Geoff. We'll go to Dan's talk about the orphan development strategy. Yeah. Thanks, Geoff. And I think you're correctly pointing out that a oral medicine like Orford Glyphron could be acceptable for use in a number of broad indications, particularly a primary care type indications. Thank you.
Dan Skovronsky: That's guided art thinking, indications that we're pursuing, I think coming out of this readout, we have even more confidence in this molecule, and we'll aggressively pursue whatever directions we think work.
Dan Skovronsky: Combinations surely are on the table, where that makes sense for patients, particularly in these areas where there could be synergy with other mechanisms, but probably there are a number of good ideas in immunology and neuroscience as you point out.
Jeff Meacham: Also, just a reminder, Geoff, it's not our only oral inkleton, we have another molecule behind that, and we're continuing to innovate.
Jeff Meacham: with even multifunctional orals. So I'm pretty excited about what's yet to come here and surely we start with type 2 diabetes and obesity, but more to come.
Thanks, Dan. On to the next caller, please.
Speaker Change: The next question is coming from Chris Schott from JP Morgan. Chris, your line is live.
Chris Schott: Great, thanks so much, just another Orpher Bluper on data, just post the data we've seen here.
Speaker Change: Can you still elaborate a bit more on the role you see or for glip-run playing in the core obesity and diabetes market relative to injectables and maybe as part of that any thoughts on what type of share you would envision orals taking in the market over time. Thank you.
Speaker Change: Great, thanks for us, we'll go to Patrik to talk about that role of Oral in the broader entertainment market.
Thanks a lot Chris.
Speaker Change: I think there are significant opportunities here for Foglifrån, just looking at the type 2 market today.
We know about...
Approximately 50% of patients have a preference for an aura. [inaudible]
Speaker Change: giving everything and sequel, only a thick as in the safety side.
Speaker Change: And similarly, on the OBE side, we know that we have approximately 25% of the patients in the U.S. suffering from needles here. So I think that position has very nicely to be a first-line inquiry team for both type 2 and chronic weight management. Thank you very much.
Speaker Change: The other benefits as well, I think with an aura here, we can scale and reach patients that is more or less impossible with only injectables. So I think it provides a huge global opportunity for us with our focus drawn and also from a manufacturing side, probably a significant benefit as well. Thank you very much.
Speaker Change: So, overall, I think tremendous opportunities here, we're both for open type 2 and obesity in the US and other markets where we have launched are also to scale globally, to an extent we can't do with injectables.
Speaker Change: Williams, maybe too quick as their segments that we're thinking about actively. One, of course, we're doing the...
Speaker Change: The Maintain Studies, which switched people from injectable to oral to maintain weight loss. That's a big unmet need in the market. People like the idea of stepping down and using less medicine. They're trying things on their own now and we'll have science-based solution using oral, which we think will be.
Speaker Change: Attractive Choice, that date is not in hand yet, we need to wait for that to prove that out, but
Chris Schott: You know, I think that's an interesting segment that will probably grow quite large over time, Chris.
The other one is...
Reaching segments of the population that maybe have comorbid risk.
Maybe not comorbid disease, have overweight but not obesity and...
Chris Schott: Dr. Don't need dramatic weight loss but sustained lower body weight is an important factor in their long-term health and we'll look at studies there. I think the prior question was alluding to that in terms of indications that might be suitable for that space. So we have big ambitions here and of course need to see the full data package come in on obesity.
David, a pretty exciting opportunity.
Okay, thanks, Badger, thanks Dave, great for the next question, please [inaudible]
Speaker Change: The next question will be from Terence Flynn from Morgan Stanley . Terence, your line is live. Terence, your line is live.
Fussions, thank you.
Speaker Change: Okay, going on the risk-carver again Terence with the two-part question, but go to Patrik to weigh in the thoughts on the awful pricing and in the portfolio implications as well. Thanks a lot Terence. But I think it's on the pricing we normally don't comment on that until the time of launch. Thanks a lot Terence.
Speaker Change: But I think truly having a portfolio in this space and a stage shared area in Oral that you actually could approach patients with a BMI of 27, lower BMI, Czapar Taider probably will play as a foundation for treatment of chronic weight management for quite some time to come. And potentially, as Srikripa learned the agony, it's where you could target people with a BMI of all 35.
Speaker Change: and so I think that gives us a position of strength in this marketplace. This is a great place.
Speaker Change: Maybe just one like policy related ad, like how do we think about pricing? [inaudible]
Speaker Change: Foward, especially in a category like this. You know the past was really about very high list prices. [inaudible]
Ann, Rillie Deeb Discounts,
to leverage PDM access.
Speaker Change: Meneville, discount on list price, with the idea of trying to squeeze those two numbers together. We'd like to continue that progress so that patients.
Speaker Change: and payers have a more similar basis for cost sharing and that cost. [inaudible]
Speaker Change: We, I think that's a better way forward. So, just as Patrik and the team work on pricing strays etc, know that in the background, we're trying to push these two numbers together over time, reduce growth to net spreads, have less rebate flow into the channel and more transparent overall pricing.
Speaker Change: Great. Thank you, Dave. Thank you, Patrick. Next question, please. The next question will be from Mohit Bansal from Wells Fargo. Mohit, your line of life.
Good, thank you very much for taking my question, I think. [inaudible]
going back to the CBS announcement this morning.
Speaker Change: The two ways to look at it, I mean, one could be, you know, obviously the stop reaction is like that, it seems like, I mean, that bound burst as they go, we kind of price more.
Speaker Change: Devar, how do you view this development? And in longer term, I think, is it a better version of glyphs? Once you see, or is it a glyph one versus the access situation you see, this is going to evolve over a couple of years.
Speaker Change: Thanks for the question, Mohan. I think they do want to elaborate on some of the earlier comments about the PTSD. I mean, I think those are good questions to ask Novo and CDS, really.
Speaker Change: E. Just pointing out that the book of business we're talking about is smaller employers who tend to take the template, it's formulary, the opt-in rates are ready or low, so it is possible that
Dupinion with the price that...
Speaker Change: CBS is going to offer this client so you get more opt in. I think that's a net good thing overall because what we see, despite the press, is when employers opt in, they tend to not opt out. Employees like to be on these medicines. And, um,
Speaker Change: Mason-Benz in the real world, etc. So that could be good as you're saying. On the other hand, I guess we're focused on innovation and differentiation. We see...
Speaker Change: kind of a mega category here that will have many different choices and solutions and it seems like the wrong idea to reduce choice.
Maybe there's patience. [inaudible]
Speaker Change: who are taking Zepbound in one of these formularies, and as of July 1, they won't have that choice. I think they'll be quite upset about that. And, you know, we'll see how the market reacts and how much share it gets moved ultimately. But, you know, as is at our preferences to expand access, now reduce it. [inaudible]
Thanks Dave, next color please.
Speaker Change: Next question will be from Alex Hammond, from Wolfe, Alex Irleina's life. [inaudible]
Alex Hammond: Thanks for taking the question. Just one quick one on trailer. They're all three. So during the four-two call, Dan mentioned that the team is closely watching the preclinical trial and the study will read out when the target number of progression events were accrued.
Alex Hammond: Great, thanks Alex, we'll go to Anne for the question on the welcome question on the Alzheimer's portfolio. Yes, thanks so much for a question on Alzheimer's and as we mentioned past, we have complete enrollment in the TV3 study and as you said, it's an event-based study so the timeline for the readout is driven by this and although our clinicaltrial.gov is the date in 2027.
Alex Hammond: I believe it could be earlier than that, so we're looking forward to that.
Alex Hammond: Now, these are patients who have elevated levels of amyloid but no detectable symptoms and our goal is to significantly reduce the risk.
Alex Hammond: The People Ever Experience the Symptoms of Alzheimer's Disease, so that's the goal of the study. The actual endpoint is time to event of clinical progression and we measure that by the CDR Global Score, so really preventing people from using the Symptomatic Stage, which is the stage at which the greatest impact is happening.
Alex Hammond: So what we saw on TV2 obviously got us very excited about the potential to come here with the fact that patients
Alex Hammond: Williams, earliest disease and early symptomatic did so well and had such a significant slowing of progression, 60%. So we'll look forward to sharing more as the events occur. And again, we'll share more timing when we have those events reached.
Great. Thanks, Anne. And next question, please?
Speaker Change: The next question will be from Seamus Fernandez from Guggenheim. Seamus, your line is live. The next question will be from Seamus Fernandez from Guggenheim.
Speaker Change: Thanks for the question. So I'll go with another non obesity question. How is Eblis tracking against your ambition of it being a best in class launch? Yes.
Seamus Fernandez: Czapar, is your vision for peak sales in line with consensus sales of $2 billion and do you see an opportunity materially higher than that? And if not, is the barrier related to Santa Fe's claimed rebate wall or something else like the breads of the label or perceived efficacy differentiation. Thanks so much. Thank you.
Seamus Fernandez: Great, thanks, James. We'll go to Dan to talk about the Ebbless-Lunch Dynamics and some goals for the brand. Yeah, thanks, James. We certainly do have high aspirations for Ebbless. It's a great medicine. We saw it amazing day in our clinical trials. I think this is...
Seamus Fernandez: who prepared us well to take on the market leader in a topic to arm, which is a large and growing market. And in the early months of launch, we've seen good uptake as you can see reflected in the numbers. We've seen good uptake as you can see reflected in the numbers.
Seamus Fernandez: and I think probably most telling is what we're seeing and hearing from physicians. Initially I think in any watch. [inaudible]
Seamus Fernandez: People try to their most of your patients, people who might have failed other therapies and when they seek good responses there, they move it into the first line setting. That's exactly the motion we're seeing from physicians, they're happy with the results they're getting and they're using it more and more. A lot of work to do and you point out the heavy competitive dynamics, but I like the asset I have. [inaudible]
in terms of [inaudible]
Seamus Fernandez: Rebates and Coverage, I think as Lucas said, we're seeing a growing coverage here in the United States, and I think we'll overcome any issues there without trouble. So we look forward to broad access and continued accelerating uptake.
Great, thank you, Jan, next call, please.
Speaker Change: The next question will be from Tim Anderson from Bank of America. Tim, your line is live.
Tim Anderson: Thank you. Question on kind of going back to formulary positioning in obesity. So I know you don't want to play the one of one formulary game, but it's still something that might occur anyway.
Tim Anderson: David, because no of those losing share to you, and price is really the only lever they can pull at the moment, and some pairs will look at one of one as a way to manage spend. I know that some states have already taken that approach, how we're seeing CBS . [inaudible]
Tim Anderson: DeWit, so really the question is, I guess, of Covered Live today, what person appears already are having this one of one approach, and just, again, your view for how this is going to evolve going forward, whether you like it or not, like it? [inaudible]
Speaker Change: Thanks Tim, for the next question on CVS, we'll go to Patrik.
Patrik: Thank you very much, Tim. You're not one-on-one, it's quite rare in the marketplace today, when it comes to obesity. And as Dave said earlier, we deal with it.
Patrik: Contract negotiations all the time and we are not entirely surprised with the announcement this morning, taking into account set on strong performance. Thank you very much.
Patrik: For us, we would just continue to execute as strong as we can, and I think we have a tremendous momentum in the marketplace with a net switch that is quite significant too, to set down in the marketplace. We will continue all the airports across the BBMs, Medicaid and North America, and of course our self-pay airport with biops as well. We will continue all the airports across the BBMs. We will continue all the airports across the BBMs.
Great. Thank you, Patrik. Next question, please. Thank you.
Speaker Change: The next question will be from Evan Seigerman from BMO Capital Markets, Evan Eurilinus Live. The next question will be from Evan Eurilinus Live.
Evan Seigerman: Hi guys, thank you so much for taking my question. I wanted to touch on Trezepatide and Hepteth. The update was a bit surprising today. Can you find some additional detail on what FDA wants to see in regard to additional data and what you didn't have from the summit trial that was to demonstrate the clear and up benefit. Thank you. Thank you very much.
Evan Seigerman: Yeah, thanks Evan, we'll go to dance with a question on the partially dynamics. Yeah, so thanks Evan.
Speaker Change: It's probably obvious to you as it is to us that that was a study with a really strong and profound benefit for patients so we're excited about the opportunity to have patients with that. I think from the FDA perspective, they want multiple trials to support this indication. Thank you very much.
Speaker Change: Czapar, and I think that's probably where we ended it. It's possible we could get additional data from other trials to support the resummission here.
Speaker Change: On the other hand, just remember that all of the patients in this trial and the proposed indication are already covered under the obesity education.
Speaker Change: Anderson, so it's not a new population to treat, it's rather a new benefit for people that might already be widely understood to doctors today. So it's a bit unfortunate we're in this position and it could have. [inaudible]
Speaker Change: A bit of a curtailing effect on investment in HEPF, which is a pretty serious on that medical needs, sorry to see that, but it's kind of hard to think of the incentive for doing large outcome trials in this population that's already covered under an existing indication and the benefits are well understood. Thank you very much.
Great. Thanks, Dan. Next question.
Speaker Change: Next question is from James Shin, from Deutsche Bank, James Your Line of Life
James Shin: Hey, good morning guys. Thank you for the question. Maybe one for Lucas. I know revenue guidance was maintained, but is the mid to high single digit price had went still intact. Following the CVS formulator decisions on Zephyn and also given the movement in FX. Thank you.
Speaker Change: Yeah, thank you for the question, James, maybe just jumping into it right away. As you heard, we are referring our guide for the four-year that the midpoint continues to be in that 32% range for the year, and we are off to a good start with...
Speaker Change: The Strong Road that we see in the first quarter to your question about the prize. Yes, again, I mentioned last time, and I'll reaffirm it now. Again, that mid to high single digit prize erosion. We've seen that in the first quarter, by the way, minus 6% in prize.
Speaker Change: So it's very consistent with what I sure in the last early school. So overall, I think that that perspective has not changed both in terms of the guide and our expectations on [inaudible]
Speaker Change: on one prize for the year. Maybe just again to provide a little bit more perspective on-
Speaker Change: on how things evolve on how we think about the guys. They're always dynamics, taking place during the year as you can imagine. And we factor those ones as part of our forecasting process. So we as Patrick alluded, we are not surprised with this. And again, we will continue to navigate. We feel strongly about the update that we are seeing nowadays and we will continue to navigate through this throughout the year. We will continue to navigate through this throughout the year.
Speaker Change: Great, thank you Lucas. Thanks for the question. Next question please. Thank you.
Speaker Change: The next question will be from Umair Rafat from Evercore. Umair your line of life.
Umer Raffat: Good morning guys, thanks for taking my question and congrats on recent Orphaglypran updates. I had a question, a two-part question on Orphal's safety. First, I recall you mentioned, no hepatic safety signal was observed and no highs law. Could you confirm there was no numerical imbalance on ALT about five times?
Umer Raffat: and on diarrhea, I recall it was in the low to mid-20s across the second highest and highest dose. How should we think about that heading into the obesity trial, especially with longer duration? Thank you very much.
Umer Raffat: Thank you very much for the question on the fifth profile for Orphan. Thank you very much.
Umer Raffat: Okay, thanks. There's a very specific question, which I may not precisely know the answer to honestly, but it is far as the overall liver safety profile, including kind of mean changes and excursions from the mean. Thank you.
Umer Raffat: David, we didn't see anything of concern here and it looked very similar to placebo so I think we feel confident that additional data readouts coming of course, but so far so good. Thank you very much.
Umer Raffat: I think with respect to rates of diarrhea you're pointing out that they were a bit higher in this study than we've seen in previous studies they were also higher in the placebo rate. [inaudible]
Umer Raffat: David. I think we might need to move to an understanding of diarrhea rates as a sort of a ratio of drug to placebo because they can be pretty variable. Depending on the country that you enroll the trial and we saw that effect in this study with some countries having very high diarrhea rates in placebo and drug. [inaudible]
Umer Raffat: and also the way that's ascertained by the investigators. So I didn't see anything of concern there, but I do need our trials that probably across the leasing to have slightly higher dire rates than others, but let's see what we see in the obesity rate. That's not the main focus here. [inaudible]
Umer Raffat: Probably the more telling indicator of tolerability is going to be discontinuations due to adverse events. That's what probably matters the most in the real world.
Dan Skovronsky: Great, thank you, Dan. Thanks for the question. Thanks for the question, please.
Speaker Change: The next question will be from Steve Scala from TD Cowden. Steve, your line is live.
Steve Scala: Well, thank you very much. My recollection is that Lilly used aggressive, formulary positioning as a lever with touts against other Isle 17 competitors and therefore reduced choice. Would you refresh your memories on what that did for touts in terms of share and incremental sales?
Steve Scala: and if you're willing to at what discount and how can that experience inform us on the Outlook for Zepbound and we go over on the CVS formula. Thank you.
Steve Scala: Great, thanks Steve, but Dave will go to you for the mystery of environments in the world.
Steve Scala: Yeah, so four score and seven years ago. No, we, we lost hopes almost a decade ago. I have a different record, I was in charge of it at the time. Actually, we had a situation where we were the follower and what we try to do is go from one of one in a new category.
The Two of Two
and that's what I think we more or less achieved.
Steve Scala: The first three or four years of the brand. Of course, things have changed since then with 23s and now a third, 17 entering and you do see one of ones, but I guess maybe a point to raise here is that kind of payer behavior is more common in the farming industry when you have more than two players. This is one of the first four years of the brand.
Steve Scala: and when you have Patrik profiles that are clinically kind of close to each other.
Just pointing out in the OBC space, it's...
Steve Scala: Brooks, neither of those things are true. And it'll be interesting to see how this experiment works. We have more differentiation coming, so I think there'll be more choice needed in the marketplace, not less. It's really never been our strategy in a category to...
to use the pair channel to drive share exclusively.
Steve Scala: David. Even when we had big advantages on clinical profile, I mean, Jardians is an example of that where we always sought to have multiple choices in that class. So...
Speaker Change: different memory than yours, Steve, although you've been doing this a long time as well, and that doesn't mean we didn't have some situations that were one and one for tall, but it wasn't our preferred.
Speaker Change: and Franklin, we didn't offer different rates to get there, so that's also all that's true now, we as a company position want more choice, and particularly we're innovations flourishing, and we have a lot out of the coming, it wouldn't be in our interest. [inaudible]
David. Thank you, Dave. Next question, please.
Speaker Change: Next question is coming from Courtney Breen from Bernstein, Courtney Earline is live in Bernstein.
Courtney Breen: Hi everyone, thanks for the question, perhaps just following on from Steve's question as well. Can you clarify for us, because I think a number of investors are concerned and obviously we see that in the share press today. How many current patients on debtbound are being covered by CVS Caremark today? Thank you very much.
Okay, thanks for the question, Courtney. May I give some? [inaudible]
Courtney Breen: some color on the Ruff Magazine Patrick on the CDS step-on air dynamics.
Courtney Breen: Yeah, you're not, I don't have a specific number of lives to share today, but I think when you look at it so back to it's not the entire CBS account.
Courtney Breen: were talking about the sunset of plans that they shared earlier and were to need to understand what
Courtney Breen: and we believe it's not on the high end. So I think that's probably the guidance we can provide today and I think we'll just continue our efforts to drive increased employer opt-in across other plans and segments, but that's the number I...
That's the only thing I can shout today.
Good. Thank you, Badger. Next question, please.
Speaker Change: The next question will be from David Risinger from Learning Partners. David, your line is live.
Speaker Change: Yes, thanks very much. So I'm hoping that you can comment Dave on discussions with the Trump administration on tariffs outside of the 232 investigation.
Speaker Change: and I'm curious about the discussions to satisfy the Trump administration's interests in having drug companies record more profits in the United States and generate more tax revenue in the United States. [inaudible]
Thank you.
Dave Ricks: Taylor. Thank you, Dave. Dave, go ahead, I'll show you that. I've heard a question. I mean, you're correctly pointing out the Section 232.
Speaker Change: You know, mechanism is a national security mechanism, and that's where the pharma review sits today. [inaudible]
Speaker Change: Christopher, separately, there's an agenda item in the administration to repatriate supply chain, and one we support, and then thirdly, there's a question of raising revenue while they're going through reconciliation process, and so far, so just done those three things. [inaudible]
Speaker Change: You know, the 232 review I think has merit in the sense that if we look at [inaudible]
Speaker Change: What are really a lot of commonly used generic medications, some of which are minted by Lilly long ago or other innovative companies. [inaudible]
Speaker Change: Cap, move toward offshore sources, single source sources and potentially in competing countries where you get imagine.
of Future Conflict and a potential problem. [inaudible]
Speaker Change: We see that too, I think the branded industry would like to help with that problem if we could.
Speaker Change: Fundamentally, it's kind of a market mechanism problem where there's no real good pricing available, so there's not going to be an on-short presence till there is.
Speaker Change: Czapar. But in the case of emergency, maybe we could work with him. I think there's a big question of whether terrifying that would do anything to move the supply chain, and maybe that's the subject of that review. And we would hope the 232 review would be kind of cabin to that question.
Speaker Change: You know, we're in the process, we made a decision four years ago with the board to, you know, move away from just a pure efficiency, whether it be tax efficiency or cost of good efficiency and move to a more resilient position. Thank you very much.
Speaker Change: probably not a long-term one. We think the real answer there, as I said earlier, is to reduce the gap that led to that problem at the beginning, which is really an income tax. [inaudible]
Speaker Change: Situation, and when the U.S. was at 35 in Ireland was at 15. So I think tax reform is key to that and we'll fix that problem for the long term. We'll fix that problem for the long term.
Speaker Change: Scott, within Lilly, we've made investments to sort of contain that anyway. Thank you very much.
Speaker Change: Jackson, and then actually, because of the, in the 2017 TechSket jobs act, there are provisions for a minimum global tax, basically, so that we already pay tax on foreign sourced income. So that really doesn't change.
Speaker Change: Levin. Whether we move it back to US or not, what that does is it has an effective raising income of taxing.
Speaker Change: Czapar, Peter Puntries, which is actually has done over the last seven years. So I think we're well positioned within the mix of companies. I think these issues are complicated and hard to reduce the sound bites. [inaudible]
Speaker Change: 232 has substance, I think the trend on for the industry and certainly for Lily of redemesticating as well underway. And you know we hopefully have to get into a tear of discussion. Hopefully we pass a tax bill and this can normalize.
Thank you, Dave. Next question, please.
Speaker Change: The next question is from Kerry Holford from Berenberg. Kerry Irlang is lies
Kerry, please check your mute button, your line is live.
Speaker Change: Apologies, thank you. Question on the cash pay approach here in the US is that bound. CVS also announced that its pharmacist was a stock that would go to the cash pay pens. So my question is whether that bound cash paid by owns are available in the US.
Speaker Change: in any pharmacy chain today, and given your enthusiasm for that opportunity, can't pay in general.
Speaker Change: I'm interested in whether you're considering additional channels outside your online Lily Direct Portal. Would that be an opportunity for you as well within the forms you change in the US? And then...
Speaker Change: and a related question, do you ultimately intend to ever offer the Zebun pens by the cash pay route or do you intend to keep that separation?
Thank you.
Speaker Change: Thanks, Kerry, related question again, getting close to the line there, but Patrik, do you want to take the question on to the vials, the cash pay distribution, and if we would ever think of other formulations?
Yeah.
Speaker Change: I think we're very pleased with the performance in our self-paced segment and if we look just on Q1 when revenues above 200 million dollars earn 25% of the MBRX for set-bound are initiated in Q1 through self-paced and 17% of the entire market MBRX.
Speaker Change: in self-paid. And I think we stated from the beginning, when we're launching it, I reckon, that we leave it to remove friction for patients.
Speaker Change: and Abraham Bonan. So, I think you should expect more to count really directly. I don't have anything to announce today, but I would just emphasize that the price change that we announced earlier this year in the launch of high-dose files has significantly contributed to an even further acceleration of the market growth.
Speaker Change: So I think we are doing something here to really enable more patients to access both medications at the relatively competitive price.
Thank you, Patrick, next question.
Speaker Change: The next question is from Akash Tewari, from Geoffrey, Akash Irlanda's lies. [inaudible]
Thank you.
Speaker Change: Hey, thanks so much. It seems like your team's really going after this 75% of Americans who are both overweight and obese would long-term net pricing have to approach insulin levels for that to become reality. Additionally, the street models long-term margins going above 50% while your team's been in systems that that's 40 to 45% range is really sustainable.
Speaker Change: How much of that delta is really us misunderstanding your volume over price approach to GLP-1's long term?
Speaker Change: Thanks Akash, we'll go to Patrick and then potentially Lucas to talk about both the pricing long-term and margins.
Speaker Change: I already comment from the pricing perspective, I think the price impressions are consistent with the trends that we have seen in the last 12 months and that's what we are forecasting moving forward. It's a very dynamic situation as well, but we remain disciplined on our approach to provide optionality and have an open access for patients. Thank you very much.
Okay, thank you Lucas, thank you Patrik, next question. [inaudible]
Speaker Change: The next question is from Trung Huynh from UBS, Trung Your Line of Life.
Speaker Change: on the Tolerability side of things. Can you just give us any colour on when you had those GI side effects and discontinuations in the Chief? [inaudible]
Speaker Change: Wilson. Was it early or later, just thinking about how tolerability could be from the attained versus achieved studies? Thanks.
Speaker Change: Thanks, Ron, we'll go to Dan for the formal questions. Yeah, thanks. These are important questions, particularly the expectations for the UBCD study and I probably take some pain again to remind people that this is a monotherapy, GLP-1 agonist, not a dual agonist, like Terence Epitide.
So we need to...
Speaker Change: Expect weight loss that could be seen with GLP1 monotherapy, which as we showed in Surmount 5 is quite different than what you get with two actions that Terence Apatite has.
Speaker Change: So, Surmount 5 was a 72-week trial in obesity patients, the Lilly ran, that included Mono therapy, GLP1, injectable in the form of semi-glutide up to 2.4 milligrams.
Speaker Change: and I think in that study we achieved about 13.7% weight loss with the GLP-1 monotherapy. The GLP-1 monotherapy.
Speaker Change: This is a similar trial, it's not exactly the same for Cliffron, but probably we should expect to be somewhere near that. I think on tolerability. [inaudible] I don't know.
Speaker Change: That study also had about a 20 some percent of the patients made 21% of the patients with a vomiting. Thank you very much.
Speaker Change: Williams, which is probably the most reliable indicator of GI tolerability in the most consistent across trials. So, that's our expectations. Again, it's still to match the best available data from an injectable.
Speaker Change: and in this case I focused on the trial that we conducted since...
We're conducting this trial with Orford Clipron.
Speaker Change: with respect to when did the discontinuations and tolerability events occur in the previous study? Yes.
Speaker Change: I think it was pretty similar to what we see in the past with injectables that usually these things happen early in the study and when people increase their dose.
Speaker Change: They're actually some of the difference between the top two doses. [inaudible]
Speaker Change: was probably just a chance because it happened a pretty early in the study when actually patients would have been on the same, but they're simplifying the escalation scheme. So nothing of concern there. I think if we'd seen a different pattern with events happening late in the study. [inaudible]
Speaker Change: I think that would be a more concerning but that is not what we saw. Great. Thanks, Dan. We're going to try to do a couple more quick ones, so next question please.
Speaker Change: The next question is from Carter Gould from Cantor. Carter, your line is live.
Carter Gould: Good morning. Thanks for taking the question. I appreciate all the upfront comments around Terence. I guess Dave, given sort of your unique perspective in Louise's active role in shaping policy, it's much brighter than we didn't hear you talk about some of the drug pricing risk. I guess anything you can share there around if you think.
Speaker Change: potential MFN legislation as a priority or possibility in the coming balance of the year. Thank you.
Speaker Change: Yeah, well I think it's always a risk for the industry. I think we point out that
Speaker Change: It's not coherent to have a discussion about that without talking about real net pricing versus. [inaudible]
Speaker Change: Real Pricing in Europe and that goes you into a PBM reform discussion and a 340B discussion. Thank you very much.
Speaker Change: So it's a complicated matter. I think you have to ask what would be the vehicle for such a thing and there's certainly appetite in both parties to pursue this.
Speaker Change: You know, our goal, by the way, long-term is to make sure that we can...
have a discussion, as I mentioned earlier, a trade. [inaudible]
David, with your out that would really change.
Speaker Change: Ruggers are priced in that continent and developed economies pay more for the R&D costs. That's the real answer here.
Speaker Change: But I think right now we're hyper focused as an industry on fixing the IRA problem that was graded as to small molecules. I think our disease for that policy change is high and that'll be the focus on the
Speaker Change: Williams, the bill that's being contemplated now in Bay to get out of the house. So that's the focus today and we'll try to manage the risk. You're talking about it in the background. All the while,
Thank you.
Thanks Dave, we'll try to squeeze in one or two more.
Speaker Change: Thank you. The next question is coming from Rajesh Kumar from HSBC. Rajesh, your line of slides. The next question is coming from Rajesh Kumar.
Hi there, 10 for taking my question.
Jiston, you know, Axis and Coverage of Zet Bound.
Speaker Change: Could you update us on how that looks now compared to, say, your back same time, you know, how many more
Speaker Change: Compounders being blocked from selling competing products which are no longer allowed for relief products at the moment, at the moment.
Please see the complete disclaimer at https://sites.google.com or at https://sites.google.com
Speaker Change: Svoda Banchard for an update on zip-bound access progress.
Thank you very much [inaudible]
Speaker Change: You know, I think we shared earlier about the formula reactions is probably the easiest step, and the more challenging step is going to get employers to obtain. Thank you very much.
Speaker Change: and by the end of 2024, we were at mid to the high 50s, so progress were on employer opt-in. But also in other segments, in Medicaid, we have actually moved from 11 states being covered by the end of 2024.
Speaker Change: to 14 states covering now, and incremental states medicated about the being in April specifically for USA. Hey.
Speaker Change: and on OSA we know that the CMS has issued guidance that plans can reimburse for OSA but they have 180 dates for approval which took place late December last year so expect some progress in Medicare as well during the second half of this year.
Speaker Change: Hintons of Home Founding, I think it's really hard to sense the magnitude of that market.
Speaker Change: Barrett, I think, was a couple of important cuts here, not all of those stations, and it's very on label. [inaudible]
Speaker Change: M.B., that is also a matter of pricing, that we believe that our price for $3.49 is actually quite competitive.
Speaker Change: Enthurdly in terms of the overall preference in the marketplace, where we currently have a strong momentum with more than 75% of patients starting until the treatment starting on set bound. So I think we'll continue to execute our own goals lines across those segments, and we see progress being made every week.
Great, thanks Patrik and in the last question please. Thank you.
Speaker Change: Last question, today will be from Creepa Devarakonda, from Truist Securities, Creepa, Your Line of Life.
Kripa Devarakonda: Hi guys, thank you so much for taking my question. I have a question about demagramar face to child, which is expected to be completed by June . Any update on when we might see data? We've heard the potential to see data in June at a conference. Also, can you help set expectations for the data? Thank you so much.
Kripa Devarakonda: Okay, thanks, everybody. We're going to Dan to talk about the macro map. Yeah, thank you for the question on the macro map. There are actually two phase two trials, the first one that was conducted actually before we acquired the asset.
Kripa Devarakonda: were in combination with semi-glutite, that will be the data that will be disclosed first.
Kripa Devarakonda: The ongoing trial is in combination with Terzepetite and of course that's the trial of greater interest to us and I don't think we've commented on when we might disclose that data. Remember that this is an agent that was designed to
Kripa Devarakonda: C. If we could have an effect on a positive effect on lean mass as well as a decrease in fat mass. And so that's what we're trying to see how that works in combination with these charts. And so that's what we're trying to see. And so that's what we're trying to see.
Dave Ricks: Thanks Dave for closing comments. Okay great, thank you all for participating today on Arnie's call and your interest in the company. Please follow up with the IR team as you have questions so I'm sure you will after today. I want to have a great day. Take care.
Thank you.
Speaker Change: and Ladies and Gentlemen, this does conclude or conference for today.
Speaker Change: This conference will be made available for replay beginning at 1pm today running through June 5th at midnight. You may access the replay system at any time by dialing 800-332-6854 and entering the access code 538-637
Speaker Change: International callers can call 973-528-0005. Again, those numbers are 800-332-6854 and 973-528-0005 with the access code 538637.
Speaker Change: Thank you for your participation. You may now disconnect your lines. Thank you for your participation.
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