Q2 2026 Eli Lilly & Co Earnings Call

August 5, 2026

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Speaker #3: Ladies and gentlemen, thank you for standing by, and welcome to the Lilly Q2 2026 earnings conference call. At this time, all participants are in listen-only mode.

Operator 3: Ladies and gentlemen, thank you for standing by. Welcome to the Lilly Q2 2026 Earnings Conference Call. At this time, all participants are on a listen-only mode. Later, we will be conducting a question and answer session, and instructions will be given at that time. Should you request 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, Michael Czapar, Senior Vice President of Investor Relations. Please go ahead.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Eli Lilly Q2 2026 Earnings Conference Call. At this time, all participants are on a listen-only mode. Later, we will be conducting a question and answer session, and instructions will be given at that time. Should you request 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 #3: Later, we will be conducting a question and answer session and instructions will be given at that time. Should you request assistance during the call, please press star, then zero, and an operator will assist you offline.

Speaker #3: I would now like to turn the conference over to your host, Mike Czapar. Senior Vice President of Investor Relations. Please go ahead.

Speaker #4: Good morning. Thank you for joining us for ELI LILLY & Co Q2 2026 earnings call. I'm Mike Czapar, Senior Vice President of Investor Relations.

Michael Czapar: Good morning. Thank you for joining us for Eli Lilly and Company's Q2 2026 earnings call. I'm Mike Czapar, Senior Vice President of Investor Relations. Joining me on today's call are Dave Ricks, Lilly's Chair and CEO, Lucas Montarce, Chief Financial Officer, Dr. Dan Skovronsky, Chief Scientific and Product Officer, Adrian Brown, President of Lilly Immunology, Dr. Carol Ho, President of Lilly Neuroscience, Lili Uyfa, President of Lilly USA and Global Customer Capabilities, Jake VanArnam, President of Lilly Oncology and Head of Business Development, Patrik Jonsson, President of Lilly International, and Ken Custer, President of Lilly Cardiometabolic Health. During this call, we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to various factors, including those listed on slide four.

Mike Czapar: Good morning. Thank you for joining us for Eli Lilly and Company's Q2 2026 earnings call. I'm Mike Czapar, Senior Vice President of Investor Relations. Joining me on today's call are Dave Ricks, Lilly's Chair and CEO, Lucas Montarce, Chief Financial Officer, Dr. Dan Skovronsky, Chief Scientific and Product Officer, Adrian Brown, President of Lilly Immunology, Dr. Carol Ho, President of Lilly Neuroscience, Lili Uyfa, President of Lilly USA and Global Customer Capabilities, Jake VanArnam, President of Lilly Oncology and Head of Business Development, Patrik Jonsson, President of Lilly International, and Ken Custer, President of Lilly Cardiometabolic Health. During this call, we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to various factors, including those listed on slide four.

Speaker #4: Joining me on today's call are Dave Ricks, Lilly's Chair and CEO; Lucas Montarce, Chief Financial Officer; Dr. Daniel Skovronsky, Chief Scientific and Product Officer; Adrian Brown, President of Lilly Immunology; Dr. Carol Ho, President of Lilly Neuroscience; Ilya Yufa, President of Lilly USA and Global Customer Capabilities; Jake Vannar, President of Lilly Oncology and Head of Business Development; Patrick Johnson, President of Lilly International; and Ken Kuster, President of Lilly Cardiometabolic Health.

Speaker #4: During this call, we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to various factors, including those listed on slide 4.

Speaker #4: Additional information concerning factors that could cause actual results to differ materially is contained in our latest Form 10-K and subsequent filings with the SEC.

Michael Czapar: Additional information concerning factors that could cause actual results to differ materially is contained in our latest Form 10-K and subsequent filing with the SEC. The information we provide about our products and pipeline is for the benefit of the investment community. It is not intended to be promotional or otherwise influence prescribing decisions. Our commentary today will focus on our non-GAAP financial measures. Now, I'll turn the call over to Dave.

Mike Czapar: Additional information concerning factors that could cause actual results to differ materially is contained in our latest Form 10-K and subsequent filing with the SEC. The information we provide about our products and pipeline is for the benefit of the investment community. It is not intended to be promotional or otherwise influence prescribing decisions. Our commentary today will focus on our non-GAAP financial measures. Now, I'll turn the call over to Dave.

Speaker #4: The information we provide about our products and pipeline is for the benefit of the investment community. It is not intended to be promotional or to otherwise influence prescribing decisions.

Speaker #4: Our commentary today will focus on our non-GAAP financial measures. Now, I'll turn the call over to Dave.

Speaker #5: Thanks, Mike. Q2 continued LILLY's strong momentum. We delivered robust revenue across all key products and major geographies. We raised our full-year annual guidance. We advanced our pipeline across each of our therapeutic areas.

David Ricks: Thanks, Mike. Q2 continued Lilly's strong momentum. We delivered robust revenue across all key products and major geographies. We raised our full year annual guidance. We advanced our pipeline across each of our therapeutic areas and expanded our pipeline through business development. On slide five, we list key Q2 financial metrics and highlight progress related to our strategic deliverables. Revenue grew 48% compared to Q2 of 2025, and our key products increased by almost $6.8 billion. Within key products, our oncology, immunology, and neuroscience medicines collectively grew 121% compared to the same quarter last year, as we continue to expand our presence across the portfolio. The number of people taking incretins grew, and Lilly's portfolio of medicines extended its leadership position. The US Foundayo launch continued to build momentum.

Dave Ricks: Thanks, Mike. Q2 continued Lilly's strong momentum. We delivered robust revenue across all key products and major geographies. We raised our full year annual guidance. We advanced our pipeline across each of our therapeutic areas and expanded our pipeline through business development. On slide five, we list key Q2 financial metrics and highlight progress related to our strategic deliverables. Revenue grew 48% compared to Q2 of 2025, and our key products increased by almost $6.8 billion. Within key products, our oncology, immunology, and neuroscience medicines collectively grew 121% compared to the same quarter last year, as we continue to expand our presence across the portfolio. The number of people taking incretins grew, and Lilly's portfolio of medicines extended its leadership position. The US Foundayo launch continued to build momentum.

Speaker #5: It expanded our pipeline through business development. On slide 5, we list key Q2 financial metrics and highlight progress related to our strategic deliverables. Revenue grew 48% compared to Q2 of 2025, and our key products increased by almost 6.8 billion dollars.

Speaker #5: Within key products, our oncology, immunology, and neuroscience medicines collectively grew 121% compared to the same quarter last year. As we continue to expand our presence across the portfolio, the number of people taking incretins grew, and LILLY's portfolio of medicines extended its leadership position.

Speaker #5: The US Foundation launch continued to build momentum. After educating physicians and securing commercial access across all three major PBMs in June, we began broad direct-to-consumer marketing to raise consumer awareness.

David Ricks: After educating physicians and securing commercial access across all three major PBMs in June, we began broad direct-to-consumer marketing to raise consumer awareness. We completed the US submission of Foundayo for type 2 diabetes and expect regulatory action later this year. We launched Foundayo for obesity in the UAE, and we recently received approval in Saudi Arabia for obesity and in Mexico for obesity and type 2 diabetes. Early uptake in the UAE has been encouraging, demonstrating the pent-up demand for Foundayo to treat obesity outside the US. Foundayo is under regulatory review in over 40 additional countries, and we look forward to additional approvals later this year.

Dave Ricks: After educating physicians and securing commercial access across all three major PBMs in June, we began broad direct-to-consumer marketing to raise consumer awareness. We completed the US submission of Foundayo for type 2 diabetes and expect regulatory action later this year. We launched Foundayo for obesity in the UAE, and we recently received approval in Saudi Arabia for obesity and in Mexico for obesity and type 2 diabetes. Early uptake in the UAE has been encouraging, demonstrating the pent-up demand for Foundayo to treat obesity outside the US. Foundayo is under regulatory review in over 40 additional countries, and we look forward to additional approvals later this year.

Speaker #5: We completed the U.S. submission of Foundation for type 2 diabetes and expect regulatory action later this year. We launched Foundation for obesity in the UAE, and we recently received approval in Saudi Arabia for obesity and in Mexico for obesity and type 2 diabetes.

Speaker #5: Early uptake in the UAE has been encouraging, demonstrating the pent-up demand for Foundation to treat obesity outside the US. Foundation is under regulatory review in over 40 additional countries, and we look forward to additional approvals later this year.

Speaker #5: We've also achieved several key pipeline and regulatory milestones since our last call, including the US FDA approval of EBLIS for maintenance dosing once every eight weeks in atopic dermatitis, the EU approval for JPRCA in CLL across all lines of therapy, a positive CHMP opinion in the EU for insulin F-sator alpha for type 2 diabetes under the trade name ONSWIC, and positive top-line results in three Phase 3 Reddituta trials in obesity.

David Ricks: We also achieved several key pipeline and regulatory milestones since our last call, including the US FDA approval of Ebglyss for maintenance dosing once every eight weeks in atopic dermatitis, the EU approval for Jaypirca in CLL across all lines of therapy, a positive CHMP opinion in the EU for insulin efsitora alfa for type 2 diabetes under the trade name Onswik, and positive top-line results in three phase III retatrutide trials in obesity. We added to our strong internal pipeline through business development, announcing agreements to acquire multiple companies to expand our presence in emerging therapeutic areas, including Curevo, LimmaTech Biologics, and The Vaccine Company, building a platform of potential new medicines to prevent infectious disease and their downstream complications. We acquired Psai Beckley, a company developing novel treatments for treatment-resistant depression and other mental conditions.

Dave Ricks: We also achieved several key pipeline and regulatory milestones since our last call, including the US FDA approval of Ebglyss for maintenance dosing once every eight weeks in atopic dermatitis, the EU approval for Jaypirca in CLL across all lines of therapy, a positive CHMP opinion in the EU for insulin efsitora alfa for type 2 diabetes under the trade name Onswik, and positive top-line results in three phase III retatrutide trials in obesity. We added to our strong internal pipeline through business development, announcing agreements to acquire multiple companies to expand our presence in emerging therapeutic areas, including Curevo, LimmaTech Biologics, and The Vaccine Company, building a platform of potential new medicines to prevent infectious disease and their downstream complications. We acquired Psai Beckley, a company developing novel treatments for treatment-resistant depression and other mental conditions.

Speaker #5: We added to our strong internal pipeline through business development, announcing agreements to acquire multiple companies to expand our presence in emerging therapeutic areas. Including Caribou, Limitech Biologics, and the vaccine company.

Speaker #5: Building a platform of potential new medicines to prevent infectious disease and their downstream complications. And we acquired Atai Beckley, a company developing novel treatments for treatment-resistant depression and other mental conditions.

Speaker #5: We continued our manufacturing build-out and opened our first dedicated genetic medicine manufacturing facility in Lebanon, Indiana. We also produced the first batch of commercial material at our distributed 1.5 billion dollars in dividends in the second quarter and executed 1.6 billion in share repurchases.

David Ricks: We continued our manufacturing build-out and opened our first dedicated genetic medicine manufacturing facility in Lebanon, Indiana. We also produced the first batch of commercial material at our new manufacturing site in Limerick, Ireland. We distributed $1.5 billion in dividends in Q2 and executed $1.6 billion in share repurchases. Lastly, in partnership with the US government, we reached an important milestone to improve Medicare access to anti-obesity medicines. As shown on slide six, the Medicare GLP-1 Bridge Program launched on 1 July, granting 20 million eligible Americans insurance coverage for GLP-1s for obesity at the low out-of-pocket price of $50 per month. With this expansion, 35% more people now have coverage for our obesity medicines in the United States. While still early, feedback from patients and physicians has been quite positive.

Dave Ricks: We continued our manufacturing build-out and opened our first dedicated genetic medicine manufacturing facility in Lebanon, Indiana. We also produced the first batch of commercial material at our new manufacturing site in Limerick, Ireland. We distributed $1.5 billion in dividends in Q2 and executed $1.6 billion in share repurchases. Lastly, in partnership with the US government, we reached an important milestone to improve Medicare access to anti-obesity medicines. As shown on slide six, the Medicare GLP-1 Bridge Program launched on 1 July, granting 20 million eligible Americans insurance coverage for GLP-1s for obesity at the low out-of-pocket price of $50 per month. With this expansion, 35% more people now have coverage for our obesity medicines in the United States. While still early, feedback from patients and physicians has been quite positive.

Speaker #5: Lastly, in partnership with the US government, we reached an important milestone to improve Medicare access to anti-obesity medicines. As shown on slide 6, the Medicare GLP-1 bridge program launched on July 1.

Speaker #5: Granting 20 million eligible Americans insurance coverage for GLP-1s for obesity at the low out-of-pocket price of $50 per month. With this expansion, 35% more people now have coverage for our obesity medicines in the United States.

Speaker #5: While still early, feedback from patients and physicians has been quite positive. We'll soon be publishing our annual sustainability report at sustainability.lilly.com. Showing the progress we made in 2025 on our sustainability priorities.

David Ricks: We'll soon be publishing our annual sustainability report at sustainability.lilly.com, showing the progress we made in 2025 on our sustainability priorities. Notably, we reached approximately 40 million people in resource-limited settings, exceeding our original goal of reaching 30 million by 2030. We are now developing a new commitment to address the growing burden of diabetes and obesity in resource-limited settings worldwide, and we'll share more details about this plan later this year. Now I'll turn the call over to Lucas to review our Q2 results.

Dave Ricks: We'll soon be publishing our annual sustainability report at sustainability.lilly.com, showing the progress we made in 2025 on our sustainability priorities. Notably, we reached approximately 40 million people in resource-limited settings, exceeding our original goal of reaching 30 million by 2030. We are now developing a new commitment to address the growing burden of diabetes and obesity in resource-limited settings worldwide, and we'll share more details about this plan later this year. Now I'll turn the call over to Lucas to review our Q2 results.

Speaker #5: Notably, we reached approximately 40 million people and resource-limited settings exceeding our original goal of reaching 30 million by 2030. We are now developing a new commitment to address the growing burden of diabetes and obesity in resource-limited settings worldwide.

Speaker #5: And we'll share more details about this plan later this year. Now, I'll turn the call over to Lucas to review our Q2 results.

Speaker #6: Thanks, Dave. As shown on slide 7, Q2 was another strong quarter of financial performance. Revenue grew 48% compared to Q2 2025, driven by Sebban and Monjaro, with strong momentum across all thirty areas and geographies.

Lucas Montarce: Thanks, Dave. As shown on slide seven, Q2 was another strong quarter of financial performance. Revenue grew 48% compared to Q2 2025, driven by Zepbound and Mounjaro, with strong momentum across all therapeutic areas and geographies. Gross margin as a percentage of revenue was 86.3% in Q2, an increase of approximately 1.3 percentage points versus the same quarter last year. The change was driven primarily by favorable product mix and improved cost of production. Marketing, selling, and administrative expenses increased 25%, as we invested in promotional activities to support current and planned product launches. R&D expenses increased 14%, driven by continued investment in our pipeline, including more than 40 active phase III programs. Our non-GAAP performance margin was 54.8%, an increase of nine percentage points from Q2 2025, driven by revenue growth. Non-GAAP earnings per share were $8.38, including acquired IPR&D charges of $3.03.

Speaker #6: Gross margin as a percentage of revenue was 86.3% in Q2, an increase of approximately 1.3 percentage points versus the same quarter last year. The change was driven primarily by favorable product mix and improved cost of production.

Speaker #6: Marketing, selling, and administrative expenses increased 25%. As we invested in promotional activities to support current and planned product launches. R&D expenses increased 14%, driven by continued investment in our pipeline, including more than 40 active phase three programs.

Speaker #6: Our non-gap performance margin was 54.8%, an increase of 9 percentage points from Q 2025, driven by revenue growth. Non-gap earnings per share were $8.38, including acquired IPR&D charges of $3.03, this compares to earnings per share of $6.31 in Q2 2025, inclusive of 14 cents of acquired IPR&D charges.

Lucas Montarce: This compares to earnings per share of $6.31 in Q2 2025, inclusive of $0.14 of acquired IPR&D charges. On slide eight, we quantify the effect of price, rate, and volume on revenue growth. US revenue increased 33% in Q2, primarily driven by volume growth for Zepbound and Mounjaro, as well as contributions from our immunology, oncology, and neuroscience portfolio. US price declined by 3%, driven by Zepbound and Mounjaro. In Q2, US price benefited from a change to estimates for rebates and discounts. Excluding these adjustments, US price declined by 9%. Europe revenue grew 55% in constant currency, driven by sustained strong volume growth of Mounjaro. Europe revenue also benefited from a $250 million Jaria milestone payment. In Japan, revenue grew 30% in constant currency, driven by Mounjaro and Kisunla. In China, revenue grew by 93% in constant currency, driven by the uptake of Mounjaro.

Speaker #6: On slide 8, we quantified the effect of price, rate, and volume on revenue growth. US revenue increased 33% in Q2, primarily driven by volume growth.

Speaker #6: Sebban and Monjaro. As well as contributions from our immunology oncology and neuroscience portfolio. US price declined by 3%, driven by Sebban and Monjaro. In Q2, US price benefited from a change to estimates for rebates and discounts.

Speaker #6: Excluding these adjustments, US price declined by 9%. Europe revenue grew 55% in constant currency driven by sustained strong volume growth of Monjaro. Europe revenue also benefited from a 250 million dollar Guardian milestone payment.

Speaker #6: In Japan, revenue grew 30% in constant currency driven by Monjaro and Kisonla. In China, revenue grew by 93% in constant currency driven by the uptake of Monjaro.

Speaker #6: And in the rest of the world, revenue grew 136% in constant currency driven by Monjaro primarily in Latin America and Asia. On slide 9, we provide an update on the performance of our key products.

Lucas Montarce: In the rest of the world, revenue grew 136% in constant currency, driven by Mounjaro, primarily in Latin America and Asia. On slide nine, we provide an update on the performance of our key products. Within immunology, Ebglyss worldwide sales more than double compared to Q2 2025. In the US, Ebglyss continued to gain share of new prescriptions, increasing by approximately four percentage points in the specialty dermatology market since last year. In oncology, Jaypirca had another strong quarter of growth, and worldwide sales increased 56% compared to Q2 2025. As we continue to generate positive clinical trial data and expand the label, we believe Jaypirca has the potential to be a foundational therapy across multiple settings and regimens within CLL. Inluriyo continued strong uptake in the metastatic breast cancer oral third market.

Speaker #6: Within immunology, Ethlis worldwide sales were more than double compared to Q2 2025. In the US, Ethlis continued to gain share of new prescriptions, increasing by approximately 4 percentage points in the specialty dermatology market since last year.

Speaker #6: In oncology, Jaipurka had another strong quarter of growth, and worldwide sales increased 56% compared to Q2 2025. As we continue to generate positive clinical trial data and expand the label, we believe Jaipurka has the potential to be a foundational therapy across multiple settings and regimens within CLL.

Speaker #6: In Lurio, continued strong uptake in the metastasic breast cancer oral third market. After only two full quarters, in Lurio in the US, its leader in new prescriptions.

Lucas Montarce: After only two full quarters, Inluriyo in the US is leader in new prescriptions, with more than 50% share. We look forward to the readout of EMBER-4 in the adjuvant setting to see if Inluriyo can help even more people with breast cancer. In Neuroscience, Kisunla posted strong revenue growth, expanding its leadership position in the US anti-amyloid target therapy market. Diagnostic testing momentum also continued to build, and the number of p-tau217 blood tests more than double compared to Q2 2025. This is translating to more people being diagnosed with Alzheimer's disease and accessing treatment. Outside the US, solid performance in China and Japan contributed to growth as well. Finally, in Cardiometabolic Health, Mounjaro and Zepbound had another strong quarter combining for $14.9 billion of revenue and contributing $6.3 billion of growth compared to Q2 2025.

Speaker #6: With more than 50% share. We look forward to the readout of Ember 4 in the adjuvant setting to see if in Lurio can help even more people with breast cancer.

Speaker #6: In neuroscience, Kisunla posted strong revenue growth, expanding its leadership position in the US anti-amyloid target therapy market. Diagnostic testing momentum also continued to build.

Speaker #6: And the number of PTAL217 blood tests more than doubled compared to Q2 2025. This is translating to more people being diagnosed with Alzheimer's disease and accessing treatment.

Speaker #6: Outside the US, solid performance in China and Japan contributed to growth as well. Finally, in cardiometabolic health, Mounjaro and Zepbound had another strong quarter, combining for $4.149 billion of revenue.

Speaker #6: And contributing 6.3 billion dollars of growth compared to Q2 2025. As seen on slide 10, total prescriptions in the US increased in analog market grew 31% compared to Q2 2025.

Lucas Montarce: As seen on slide 10, total prescriptions in the US incretin analog market grew 31% compared to Q2 2025. The early uptake of oral GLP-1 has been encouraging, expanding the market of people who are taking incretin therapy. Additionally, injectable incretins continue to be an important growth driver and account for 3 out of 4 new patient starts. Within the US, incretin analogs obesity market, total prescription grew by 78% in Q2, and the Lilly anti-obesity portfolio continues to lead. In Q2, approximately 6 out of 10 total prescription and approximately 7 out of 10 injectable prescriptions were for a Lilly medicine. Self-pay continued to be an important segment within obesity and accounted for approximately 45% of total Zepbound prescriptions in Q2 and approximately 55% of new prescriptions.

Speaker #6: The early uptake of oral GLP-1s has been encouraging, expanding the market of people who are taking incretin therapy. Additionally, injectable incretins continue to be an important growth driver and account for three out of four new patient starts.

Speaker #6: Within the U.S., the incretin analogs obesity market's total prescriptions grew by 78% in Q2. And the Lilly anti-obesity portfolio continues to lead. In Q2, approximately 6 out of 10 total prescriptions and approximately 7 out of 10 injectable prescriptions were for a Lilly medicine.

Speaker #6: Self-pay continued to be an important segment within obesity. And accounted for approximately 45% of total Sebban prescriptions in Q2 and approximately 55% of new prescriptions.

Speaker #6: In the US, type 2 diabetes incretin analogs market total prescriptions grew 9% compared to Q2 2025. Reflecting a more mature market compared to obesity.

Lucas Montarce: In the US, type 2 diabetes incretin analogs market, total prescriptions grew 9% compared to Q2 2025, reflecting a more mature market compared to obesity. The Lilly portfolio continues to lead here as well, as more than 6 out of 10 prescriptions for an incretin were for a Lilly medicine. Outside the US, Lilly's portfolio is also performing well in the incretin analogs market. Slide 11 shows aggregate trends in the international incretin analogs market, which has increased by 74% since the same period last year, as measured by IQVIA gross sales. Lilly is the global market leader, and we strengthened that position, gaining almost 2 percentage points of share compared to Q1 2026, reaching approximately 55%. Mounjaro Q2 revenue growth was robust, driven by China, Korea, Germany, the UK, and Mexico.

Speaker #6: The LILLY portfolio continues to lead here as well, as more than 6 out of 10 prescriptions for an incretin were for a LILLY medicine.

Speaker #6: Outside the U.S., Lilly's portfolio is also performing well in the incretin analogs market. Slide 11 shows aggregate trends in the international incretin analogs market, which has increased by 74% since the same period last year, as measured by IQVIA gross sales.

Speaker #6: LILLY is the global market leader. And with strength in that position, gaining almost 2 percentage points of share compared to Q1 2026, reaching approximately 55%.

Speaker #6: Monjaro Q2 revenue growth was robust, driven by China, Korea, Germany, the UK, and Mexico. We expect continued strong performance outside the US, but with market share leadership already established, market expansion will be key to driving sustainable growth.

Lucas Montarce: We expect continued strong performance outside the US. With market share leadership already established, market expansion will be key to driving sustainable growth. We also saw incremental progress on securing reimbursement, reimburse access, as Mounjaro is now reimbursed for both type 2 diabetes and obesity in France. Slide 12 provides an update on the Foundayo launch and the cadence of anticipated upcoming catalysts. The US launch is progressing well. Total prescription and share of new patients continue to grow as we are increasing our investment to drive brand awareness among physicians and consumer. The recent launch of the Medicare GLP-1 Bridge program is an opportunity to expand the oral market, unlocking access for eligible seniors with a low out-of-pocket cost. We are pleased to receive the first international approval for obesity in UAE and Saudi Arabia, and in Mexico for obesity and type 2 diabetes.

Speaker #6: We also saw incremental progress on securing reimbursement reimburse access, as Monjaro is now reimbursed for both type 2 diabetes and obesity in France. Slide 12 provides an update on the Fondeo launch and the cadence of anticipated upcoming catalysts.

Speaker #6: The US launch is progressing well. Total prescription and share of new patients continue to grow. As we are increasing our investment to trump brand awareness among physicians and consumers.

Speaker #6: The recent launch of the Medicare GLP-1 bridge program is an opportunity to expand the oral market, unlocking access for eligible seniors with a low out-of-pocket cost.

Speaker #6: We are pleased to receive the first international approval for obesity in UAE and Saudi Arabia. And in Mexico for obesity and type 2 diabetes.

Speaker #6: We look forward for to potential approvals in additional markets this year. With more than 40 markets currently under regulatory review, we expect a global rollout in all major markets in 2027.

Lucas Montarce: We look forward to potential approvals in additional markets this year. With more than 40 markets currently under regulatory review, we expect a global rollout in all major markets in 2027. We also expect readouts of many additional clinical trials. The first readout in obstructive sleep apnea will come later this year, and we have an additional five ongoing phase III programs studying Foundayo. As a small molecule that can be produced at scale, Foundayo has the potential to help millions of people improve their cardiometabolic health. Moving to slide 14, we provide an updated 2026 financial guide. We have increased the low end of our revenue range by $3 billion and the high end by $2 billion, reflecting a strong underlying performance of our key products in H1 2026. We now expect full-year revenue to be between $85 and $87 billion.

Speaker #6: We also expect readouts of many additional clinical trials. The first readout in obstructive sleep apnea will come later this year, and we have an additional five ongoing Phase 3 programs, including Fondeo.

Speaker #6: As a small molecule that can be produced at scale, Fondeo has the potential to help millions of people improve their cardiometabolic health. Moving to slide 14, we provide an updated 2026 financial guide.

Speaker #6: We have increased the low end of our revenue range by 3 billion dollars and the high end by 2 billion dollars. Reflecting strong underlying performance of our key products in the first half of 2026.

Speaker #6: We now expect full year revenue to be between 85 and 87 billion dollars. Based on higher revenue, we now expect our non-GAAP performance margin to be between 49% and 50.5%.

Lucas Montarce: Based on higher revenue, we now expect our non-GAAP performance margin to be between 49% and 50.5%, an increase of 2 percentage points at the low and the high end of the performance margin range. We now expect non-GAAP earnings per share of $35.50 to $36.50, an increase of $2.78 per share at the midpoint of our range before updating our guide for the $3.03 impact of Q2 acquired IPR&D charges. We are pleased with our Q2 results and confident in our ability to deliver another year of industry-leading growth. Now I will turn the call over to Dan to highlight our progress on R&D.

Speaker #6: An increase of 2 percentage points at the low and the high end of the performance margin range. We now expect non-GAAP earnings per share of 35 dollars and 50 cents to 36 dollars and 50 cents.

Speaker #6: An increase of 2 dollars and 78 cents per share at the midpoint of our range before updating our guide for the 3 dollars and 3.

Speaker #6: Impact of Q2 acquired IPR&D charges. We are pleased with our Q2 results and confident in our ability to deliver another year of industry-leading growth.

Speaker #6: Now I will turn the call over to Dan to highlight our progress on R&D.

Speaker #1: Thanks, Lucas. To start last earnings call, we've made significant progress across R&D. With advances in each major therapeutic area. I'll begin with cardiometabolic health.

Dan Skovronsky: Thanks, Lucas. Since our last earnings call, we've made significant progress across R&D with advances in each major therapeutic area. I'll begin with cardiometabolic health. Starting with retatrutide, we announced positive results from 3 phase III trials. TRIUMPH-1 in people with obesity or overweight, TRIUMPH-2 in people with type 2 diabetes and obesity or overweight, and TRIUMPH-3 in people with severe obesity and established cardiovascular disease, with or without type 2 diabetes. Across the TRIUMPH program, we've seen profound levels of weight loss and improvements in A1C, cardiovascular risk factors, osteoarthritis pain, and sleep apnea. With the recent completion of TRIUMPH-2 and TRIUMPH-3 trials, we now have the clinical data package to support global registrations in obesity, obstructive sleep apnea, and knee osteoarthritis pain. Slide 15 shows impressive and consistent weight loss across the TRIUMPH registrational program.

Speaker #1: Starting with Retatrutide, we announced positive results from three phase 3 trials. Triumph 1 in people with obesity or overweight. Triumph 2 in people with type 2 diabetes and obesity or overweight.

Speaker #1: And Triumph 3 in people with severe obesity and established cardiovascular disease, with or without type 2 diabetes. Across the Triumph program, we've seen profound levels of weight loss.

Speaker #1: And improvements in A1C, cardiovascular risk factors, osteoarthritis pain, and sleep apnea. With the recent completion of Triumph 2 and Triumph 3 trials, we now have the clinical data package to support global registrations in obesity, obstructive sleep apnea, and knee osteoarthritis pain.

Speaker #1: Slide 15 shows impressive and consistent weight loss across the Triumph registrational program. In Triumph 1, we saw weight loss approaching bariatric surgery levels at the highest doses.

Dan Skovronsky: In TRIUMPH-1, we saw weight loss approaching bariatric surgery levels at the highest doses and clinically meaningful efficacy at low doses with only 1 titration step. In patients with diabetes and obesity, who typically struggle to lose weight, retatrutide delivered a magnitude of weight loss not previously seen with incretin therapy. We look forward to working with regulators as they evaluate this important new medicine and plan to submit in the US in Q1 2027 under the BLA pathway. Turning to orforglipron, we have completed our US submission in type 2 diabetes supported by the ACHIEVE phase III program. In June, we presented detailed results from three of those trials, ACHIEVE-2, ACHIEVE-3, and ACHIEVE-5, at the American Diabetes Association Scientific Sessions.

Speaker #1: And clinically meaningful efficacy at low doses, with only one titration step. In patients with diabetes and obesity—who typically struggle to lose weight—Retatrutide delivered a magnitude of weight loss not previously seen with incretin therapy.

Speaker #1: We look forward to working with regulators as they evaluate this important new medicine and plan to submit in the US in Q1 2027 under the BLA pathway.

Speaker #1: Turning to orphoglipron, we have completed our US submission in type 2 diabetes, supported by the ACHIEVE phase 3 program. In June, we presented detailed results from three of those trials, ACHIEVE 2, ACHIEVE 3, and ACHIEVE 5, that the American Diabetes Association Scientific Sessions.

Speaker #1: ACHIEVE 3 was the first head-to-head comparison of two oral GLP-1s. And orphoglipron delivered superior glycemic control and weight reduction against 7 milligrams and 14 milligrams oral semaglutide in patients with type 2 diabetes.

Dan Skovronsky: ACHIEVE-3 was the first head-to-head comparison of 2 oral GLP-1s, orforglipron delivered superior glycemic control and weight reduction against 7 milligrams and 14 milligrams oral semaglutide in patients with type 2 diabetes. For the many people with type 2 diabetes who prefer an oral option and have difficulty reaching their glycemic targets, we believe orforglipron has the potential to be a foundational daily oral treatment. Also in cardiometabolic health, the CHMP adopted a positive opinion recommending EU approval of insulin efsitora alfa for patients with type 2 diabetes. The opinion was based on the phase III program, where once-weekly insulin efsitora alfa achieved reductions in A1C comparable to those of once-daily basal insulin. For people with type 2 diabetes who require insulin, a single weekly injection can simplify treatment and ease the burden of daily dosing. We look forward to European approval in the coming months.

Speaker #1: For the many people with type 2 diabetes who prefer an oral option, and have difficulty reaching their glycemic targets, we believe orphoglipron has the potential to be a foundational daily oral treatment.

Speaker #1: Also in cardiometabolic health, the CHMP adopted a positive opinion recommending EU approval of insulin F-sator alpha for patients with type 2 diabetes. The opinion was based on the phase 3 program, where once weekly insulin F-sator alpha achieved reductions in A1C comparable to those of once daily basal insulin.

Speaker #1: For people with type 2 diabetes who require insulin, a single weekly injection can simplify treatment and ease the burden of daily dosing. We look forward to European approval in the coming months.

Speaker #1: We also shared clinical results from VERV 102, our gene editing program in cardiovascular disease, designed to inactivate the PCSK9 gene resulting in lowered LDL cholesterol.

Dan Skovronsky: We also shared clinical results from VERVE-102, our gene editing program in cardiovascular disease, designed to inactivate the PCSK9 gene, resulting in lowered LDL cholesterol. In the phase I-B study, the single infusion reduced PCSK9 by 88% and LDL cholesterol by 62% at the highest dose. These early data are encouraging and suggest that we may be able to have our medicine delivered once for lasting cardiovascular benefit. Moving to neuroscience, we announced an agreement to acquire Psai Beckley, which is advancing a pipeline of rapid-acting neuroplastogens for treatment-resistant depression and other mental health conditions. The lead asset, BPL-003, has shown encouraging phase II-B results. This remains one of the most significant unmet needs in psychiatry, we are encouraged by the potential of a rapid-acting therapy designed to deliver durable relief. We look forward to welcoming the Psai Beckley team to Lilly.

Speaker #1: In the Phase 1b study, a single infusion reduced PCSK9 by 88% and LDL cholesterol by 62% at the highest dose. These early data are encouraging and suggest that we may be able to have a medicine delivered once, with lasting cardiovascular benefit.

Speaker #1: Moving to neuroscience, we announced an agreement to acquire Ty Beckley, which is advancing a pipeline of rapid-acting neuroplastogens for treatment-resistant depression and other mental health conditions.

Speaker #1: The lead asset, BPL-003, has shown encouraging Phase 2b results. This remains one of the most significant unmet needs in psychiatry, and we're encouraged by the potential of a rapid-acting therapy designed to deliver durable relief.

Speaker #1: We look forward to welcoming the Ty Beckley team to Lilly. With the Synthesa acquisition now complete, we added Klemen Orexton to the pipeline in Phase 2.

Dan Skovronsky: With the Centessa acquisition now complete, we added cleminorexton to the pipeline in phase II. Cleminorexton is the potential best-in-class orexin 2 receptor agonist being studied in a phase II/III trial in central hypersomnia. Orexin biology plays an important role in regulating the sleep/wake cycle, sleep disorders are associated with many neurological, neurodegenerative, and neuropsychiatric conditions. We believe with the Centessa pipeline, we may have the potential to treat a broad range of diseases. Turning to oncology, we recently presented detailed phase III results from BRUIN CLL-322 at the 2026 EHA meeting, which added pirtobrutinib to a time-limited venetoclax and rituximab regimen in previously treated CLL. As shown on slide 16, in the overall study population, adding pirtobrutinib reduced the risk of disease progression or death by 45% compared to the fixed duration regimen.

Speaker #1: Klemen Orexin is a potential best-in-class orexin receptor 2 agonist being studied in a phase 2/3 trial in central hypersomnias. Orexin biology plays an important role in regulating the sleep-wake cycle, and sleep disorders are associated with many neurological, neurodegenerative, and neuropsychiatric conditions.

Speaker #1: We believe with the Synthesa pipeline, we may have the potential to treat a broad range of diseases. Turning to oncology, we recently presented detailed phase 3 results from Bruin CLL 322 at the 2026 EHA meeting.

Speaker #1: The study added pertabrutinib to a time-limited venetoclax and rituximab regimen in previously treated CLL. As shown on slide 16, in the overall study population, adding pertabrutinib reduced the risk of disease progression or death by 45% compared to the fixed-duration regimen.

Speaker #1: Additionally, in patients whose disease progressed after treatment with one prior covalent BTK inhibitor, adding pertabrutinib to the fixed-duration regimen led to a 68% reduction in the risk of progression or death.

Dan Skovronsky: Additionally, in patients whose disease progressed after treatment with 1 prior covalent BTK inhibitor, adding pirtobrutinib to the fixed duration regimen led to a 68% reduction in the risk of progression or death. These results are the first to outperform a venetoclax-containing control arm in a CLL phase III trial. We believe this study has the potential to establish a new standard of care in this population, we have submitted these data to global regulatory authorities. Also in oncology, we shared impressive new data from the LIBRETTO-432 phase III trial of selpercatinib in adjuvant RET fusion-positive non-small cell lung cancer. These results were presented during the plenary session at the 2026 ASCO meeting and showed that selpercatinib reduced the risk of disease recurrence or death by 83% versus placebo.

Speaker #1: These results are the first to outperform a venetoclax-containing control arm in a CLL phase 3 trial. We believe this study has the potential to establish a new standard of care in this population, where we've submitted these data to global regulatory authorities.

Speaker #1: Also in oncology, we shared impressive new data from the Libretto 432 phase 3 trial of salbutamol and adjuvant red fusion positive non-small cell lung cancer.

Speaker #1: These results were presented during the plenary session at the 2026 ASCO meeting. And showed that salbutamol reduced the risk of disease recurrence or death by 83% versus placebo.

Speaker #1: This striking effect size highlights the efficacy that can be achieved by targeted therapies and underscores the importance of comprehensive biomarker testing across all stages of disease.

Dan Skovronsky: This striking effect size highlights the efficacy that can be achieved by targeted therapies and underscores the importance of comprehensive biomarker tests across all stages of disease. We are also excited by the encouraging data presented at medical meetings from two recently acquired hematology programs, AJ1-11095, a Type II JAK inhibitor from Ajax Therapeutics, and KLN-1010, an in vivo CAR T therapy from Kelonia Therapeutics. Both programs demonstrated compelling early efficacy and safety. We look forward to progressing both through clinical development alongside the teams from Ajax and Kelonia. Moving to immunology, the FDA approved a new maintenance dosing regimen option for lebrikizumab, giving patients with atopic dermatitis the option to manage their condition with as few as six maintenance injections per year. The potential to deliver sustained disease control with greater convenience has been well received by physicians and patients, reinforcing the strong and durable effect of lebrikizumab.

Speaker #1: We are also excited by the encouraging data presented at medical meetings from two recently acquired hematology programs, AJ1 11095, the type 2 JAK inhibitor from AJAK Therapeutics, and KLM 1010, an in vivo CAR-T therapy from Colonia Therapeutics.

Speaker #1: Both programs demonstrated compelling early efficacy and safety, and we look forward to progressing both through clinical development alongside the teams from AJAK's and Colonia.

Speaker #1: Moving to immunology, the FDA approved a new maintenance dosing regimen option for levetiracetam giving patients with atopic dermatitis the option to manage their condition with as few as six maintenance injections per year.

Speaker #1: The potential to deliver sustained disease control with greater convenience has been well received by physicians and patients, reinforcing the strong and durable effect of levetiracetam.

Speaker #1: With our partner Almirall, we're exploring even less frequent dosing—once every 12 weeks. These data are expected in 2027. We're also working to bring levetiracetam to more patients.

Dan Skovronsky: With our partner Almirall, we're exploring even less frequent dosing once 12 weeks. These data are expected in 2027. We're also working to bring lebrikizumab to more patients. Based on the positive phase III results in children 6 months to 18 years old in the ADorable trial program, we submitted for pediatric atopic dermatitis indication in the US and plan to submit to other global regulators later this year. We also continue to expand our study of incretin biology into new settings and initiated two phase II trials of tirzepatide, our GIP/GLP-1 dual agonist in irritable bowel syndrome. Irritable bowel syndrome is a disorder of gut-brain interaction defined by heightened visceral pain sensitivity and disordered intestinal motility. Incretin pathway signaling has been shown to reduce visceral pain sensitivity, modulate gut motility, and help restore the intestinal barrier.

Speaker #1: Based on the positive phase 3 results in children, 6 months to 18 years old in the adorable trial program, we submitted for a pediatric atopic dermatitis indication in the US and plan to submit to other global regulators later this year.

Speaker #1: We also continue to expand our study of incretin biology into new settings. And initiated two phase 2 trials of brunepetide, our GIP GLP-1 dual agonist, in irritable bowel syndrome.

Speaker #1: Irritable bowel syndrome is a disorder of gut-brain interaction defined by heightened visceral pain sensitivity and disordered intestinal motility. Incretin pathway signaling has been shown to reduce visceral pain sensitivity, modulate gut motility, and help restore the intestinal barrier.

Speaker #1: We also began a phase 2 trial of our FXR agonist in combination with miretizumab in Crohn's disease. And a phase 2 trial of our XCL12 antibody in vitiligo.

Dan Skovronsky: We also began a phase II trial of our FXR agonist in combination with mirikizumab in Crohn's disease, and a phase II trial of our XCL1/2 antibody in vitiligo. Finally, we announced three- of global morbidity. New medicines could be important to prevent acute disease and the downstream long-term consequences. We believe that combining these companies' platforms and teams with Lilly's global scale could position Lilly to address significant population-level health problems. The acquisitions include Curevo adding amezosvatein, a potential next-generation varicella-zoster virus vaccine for the prevention of shingles. In phase II head-to-head study against the current standard of care, amezosvatein showed a comparable immune response with meaningfully improved tolerability. With growing evidence linking shingles to elevated stroke risk and shingles vaccination to reduced dementia risk, a better-tolerated vaccine could expand the reach of shingles prevention and reduce long-term risks of dementia and stroke.

Speaker #1: Finally, we announced three of global morbidity. New medicines could be important to prevent acute disease and the downstream long-term consequences. We believe that combining these companies' platforms and teams with LILLY's global scale could position LILLY to address significant population-level health problems.

Speaker #1: The acquisitions include Curevo, adding a mesovetian a potential next-generation varicella zoster virus vaccine for the prevention of shingles. In phase 2 head-to-head study, against the current standard of care, a mesovetian showed a comparable immune response with meaningfully improved tolerability.

Speaker #1: With growing evidence linking shingles to elevated stroke risk, and shingles vaccination to reduced dementia risk, a better-tolerated vaccine could increase the reach of shingles prevention and reduce long-term risks of dementia and stroke.

Speaker #1: Next. Limatec Biologics is developing vaccines to prevent serious bacterial infections. Its platform focuses on bacteria by targeting the toxins and super antigens that drive disease.

Dan Skovronsky: Next, LimmaTech Biologics is developing vaccines to prevent serious bacterial infections. Its platform focuses on bacteria by targeting the toxins and super antigens that drive disease. The most advanced program is in phase I for the prevention of the leading bacterial cause of surgical site infections, where no vaccine exists today. Vaccines to prevent bacterial infection could play an important role as antimicrobial resistance grows globally. Finally, Vaccine Company, which has a lead program against Epstein-Barr virus, an infection with no vaccine today. Beyond acute mononucleosis, Epstein-Barr is linked to chronic oncological and neurological sequelae, including multiple sclerosis. A vaccine could prevent not just the infection, but the serious diseases that follow it. As highlighted by all the new molecules we added to our pipeline through acquisitions, business development is an important component of our R&D strategy.

Speaker #1: The most advanced program is in phase 1 for the prevention of the leading bacterial cause of surgical site infections, where no vaccine exists today.

Speaker #1: Vaccines to prevent bacterial infection could play an important role as antimicrobial resistance grows globally. And finally, vaccine company, which has a lead program against Epstein-Barr virus.

Speaker #1: An infection with no vaccine today beyond acute mononucleosis, Epstein-Barr is linked to chronic oncological and neurological sequelae including multiple sclerosis. A vaccine could prevent not just the infection, but the serious diseases that follow it.

Speaker #1: As highlighted by all the new molecules we added to our pipeline through acquisitions, business development is an important component of our R&D strategy. In the first half of 2026, we made strong progress, announced deals to acquire potential new medicines across established and emerging areas at LILLY.

Dan Skovronsky: In H1 2026, we made strong progress and announced deals to acquire potential new medicines across established and emerging areas at Lilly. We've been increasingly active in business development over the last several years. The pace and average deal size have also continued to increase, reflecting our strategy to grow within our core therapeutic areas and create new opportunities through emerging science. Lilly is uniquely positioned to pursue diseases where there's significant unmet need, exciting early science, and the need for Lilly's development, regulatory, and manufacturing scale to create value. We expect to remain active in business development while maintaining discipline to create value. Finally, slides 18 and 19 show the pipeline movement since our last earnings call and the full list of potential key events expected in 2026.

Speaker #1: We've been increasingly active in business development over the last several years. The pace and average deal size have also continued to increase, reflecting our strategy to grow within our core therapeutic areas, and create new opportunities through emerging science.

Speaker #1: LILLY is uniquely positioned to pursue diseases where there is significant unmet need exciting early science and the need for LILLY's development, regulatory, and manufacturing scale to create value.

Speaker #1: We expect to remain active in business development while maintaining discipline to create value. Finally, slides 18 and 19 show the pipeline movement since our last earnings call and the full list of potential key events expected in 2026.

Speaker #1: It was another productive quarter at LILLY R&D, and we have an ambitious agenda for the second half of the year. I'll now turn the call back to Dave for closing.

Dan Skovronsky: It was another productive quarter at Lilly R&D, we have an ambitious agenda for H2 of the year. I'll now turn the call back to Dave for closing.

Speaker #2: Thanks, Dan. We made excellent progress this quarter. We delivered strong business results, received regulatory approval for new indications, shared positive Phase 3 trial results, added new medicines to our pipeline, and expanded access to medicines for patients.

David Ricks: Thanks, Dan. We made excellent progress this quarter. We delivered strong business results, received regulatory approval for new indications, shared positive phase III trial results, added new medicines to our pipeline, and expanded access to medicines for patients. While we're pleased with the progress this year so far, we're not satisfied. We remain focused on executing the three components of our strategy to deliver sustained long-term growth, broaden our impact on cardiometabolic health, expand our presence in other therapeutic areas, and invest to drive future growth. Now I'll turn the call over to Mike to moderate the Q&A session.

Dave Ricks: Thanks, Dan. We made excellent progress this quarter. We delivered strong business results, received regulatory approval for new indications, shared positive phase III trial results, added new medicines to our pipeline, and expanded access to medicines for patients. While we're pleased with the progress this year so far, we're not satisfied. We remain focused on executing the three components of our strategy to deliver sustained long-term growth, broaden our impact on cardiometabolic health, expand our presence in other therapeutic areas, and invest to drive future growth. Now I'll turn the call over to Mike to moderate the Q&A session.

Speaker #2: While we're pleased with the progress this year so far, we're not satisfied. We remain focused on executing the three components of our strategy to deliver sustained long-term growth.

Speaker #2: To broaden our impact on cardiometabolic health, expand our presence in other therapeutic areas, and invest to drive future growth. Now I'll turn the call over to Mike to moderate the Q&A session.

Speaker #3: Thanks, Dave. As a reminder, we would like to address as many questions as possible. We're consistent with the prior quarters. Please limit yourself to a single one-part question.

Michael Czapar: Thanks, Dave. As a reminder, we would like to address as many questions as possible, consistent with the prior quarters, please limit yourself to a single one-part question. Paul, please provide the instructions for how to join the queue, we're ready for the first caller.

Mike Czapar: Thanks, Dave. As a reminder, we would like to address as many questions as possible, consistent with the prior quarters, please limit yourself to a single one-part question. Paul, please provide the instructions for how to join the queue, we're ready for the first caller.

Speaker #3: Paul, please provide the instructions for how to join the queue, and we're ready for the first caller.

Speaker #4: Thank you. At this time, we will be conducting a question-and-answer session. If you have any questions, please press star 1 on your phone at this time.

Operator 3: Thank you. At this time, we'll 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 limit themselves to one question on today's call. If you do have a follow-up question, please rejoin the queue by pressing star one at any time. We also ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. The first question today is coming from Seamus Fernandez from Guggenheim. Seamus, your line is live.

Operator: Thank you. At this time, we'll 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 limit themselves to one question on today's call. If you do have a follow-up question, please rejoin the queue by pressing star one at any time. We also ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. The first question today is coming from Seamus Fernandez from Guggenheim. Seamus, your line is live.

Speaker #4: We ask that participants limit themselves to one question on today's call. If you do have a follow-up question, please rejoin the queue by pressing star 1 at any time.

Speaker #4: We also ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions.

Speaker #4: And the first question today is coming from Seamus Fernandez from Guggenheim. Seamus, your line is live.

Speaker #5: Oh, thanks so much for the question. So I really wanted to ask on just sort of the increasingly deep position that LILLY is driving with consumers and how you envision expanding that treatment opportunity going forward.

Seamus Fernandez: Oh, thanks so much for the question. I really wanted to ask on just sort of the increasingly deep position that Lilly is driving with consumers and how you envision expanding that treatment opportunity going forward. There's a number of different approaches that one could see Lilly taking across a more aesthetic-driven approach, but where do you see this consumer market evolving? If you could, just maybe give us a sense of how unique or similar the US versus the international self-pay market is at this point in time as you see it. Thanks so much.

Speaker #5: There's a number of different approaches that one could see LILLY taking. Across a more aesthetic-driven approach, but where do you see this consumer market evolving?

Speaker #5: And if you could, just maybe give us a sense of how unique or similar the U.S. versus the international self-pay market is at this point in time, as you see it.

Speaker #5: Thanks so much.

Speaker #3: Great. Thanks, Seamus. Maybe some context on the consumer expansion. We'll first go to Ely to talk about the US, and then Patrick can add some commentary about what we see outside the US.

Michael Czapar: Great. Thanks, Seamus. Maybe for some context on the consumer expansion, we'll first go to Ilya to talk about the US, and then Patrik can add some commentary about what we see outside the US.

Mike Czapar: Great. Thanks, Seamus. Maybe for some context on the consumer expansion, we'll first go to Ilya to talk about the US, and then Patrik can add some commentary about what we see outside the US.

Speaker #2: Sure. Thanks, Seamus. And listen, I think the overall market, if you think about just obesity in general, in the US and globally, we're still have single mid-single-digit in terms of utilization or treatment of obesity.

Ilya Yuffa: Sure. Thanks, Seamus. Listen, I think the overall market, if you think about just obesity in general in the US and globally, we still have mid-single digit in terms of utilization or treatment of obesity, there's still a significant opportunity ahead of us to capture more patients in terms of access. You see a meaningful improvement in access with Bridge as well as some state Medicaid access going live or committing to next year. We continue to see significant growth even in Q2 and overall TRxs coming in to treatment of obesity on 3 million TRxs. A lot of that is driven by both injectable and oral on new patients coming in. Of course, we're seeing about 55% of overall prescriptions for Zepbound being in self-pay.

Speaker #2: And so there's still a significant opportunity ahead of us after more patients in terms of access. You see a meaningful improvement in access with BRIDGE as well as some state Medicaid access going live or committing to next year.

Speaker #2: We continue to see significant growth, even in Q2, in overall TRX coming in to treatment of obesity around 3 million TRX. And a lot of that is driven by both injectable and oral on new patients coming in.

Speaker #2: And of course, we're seeing about 55% of overall prescriptions for Zepbound being in self-pay. And so we continue to look for ways to increase access and affordability.

Ilya Yuffa: We continue to look for ways to increase access and affordability, increase the consumer awareness, we're putting a lot of efforts on consumer awareness and building out the need and urgency to treat obesity. We continue to look for ways to expand our LillyDirect offering and make it easy for people to get access to care.

Speaker #2: Increase the consumer awareness. And so we're putting a lot of efforts on consumer awareness and building out the need and urgency to treat obesity.

Speaker #2: And we continue to look for ways to expand our LILLY direct offering and make it easy for people to get access to care.

Speaker #3: Patrick.

Michael Czapar: Patrick?

Mike Czapar: Patrick?

Speaker #6: Well, thank you. When we look at the obesity business outside the US, it's still mainly out of pocket. So I think the consumer activation here is playing a significant role.

Patrik Jonsson: Thank you. When we look at the obesity business outside the US, it's still mainly out of pocket. I think the consumer activation here is playing a significant role, we have rapidly been replicating some of the practices from the US outside the US as well. We have launched versions of LillyDirect outside of the US. However, it's important to take into account that the regulations OUS differ, will the different models that we will apply. We will move quickly in this space. I think they have one thing in common, that is to make sure that patients are being reached by safe and authentic Lilly medicines, and we'll continue to lean in on those efforts.

Speaker #6: And we have rapidly been replicating some of the practices from the US outside the US as well. And we have launched versions of LILLY direct outside of the US.

Speaker #6: However, it's important to take into account that regulations OUS differ. And so will the different models that we will apply. But we will move quickly in this space.

Speaker #6: And I think they have one thing in common, and that is to make sure that patients are being reached by safe and authentic LILLY medicines.

Speaker #6: And we'll continue to lean in on those efforts.

Michael Czapar: Great. Thank you both. We'll go to the next caller, please.

Mike Czapar: Great. Thank you both. We'll go to the next caller, please.

Speaker #3: Great. Thank you both. We'll go to the next caller, please.

Speaker #4: The next question will be from Asad Haider from Goldman Sachs. Asad, your line is live.

Operator 3: The next question will be from Asad Haider from Goldman Sachs. Asad, your line is live.

Operator: The next question will be from Asad Haider from Goldman Sachs. Asad, your line is live.

Asad Haider: Great. Thanks for taking the question, and congrats on the continued strong performance and execution. Just on the Foundayo launch. In the US, the launch curve has been somewhat slower than anticipated. Just curious as to what you think the contributing factors are there, and when you think we could expect an inflection. On OUS, just curious to hear on any updated thoughts on how you are thinking about competitive dynamics and the launch trajectory. Novo Nordisk is now also scaling launches for their oral pill in several key ex-US countries of view, such as the UK and Germany. In the UAE, I know you said you were encouraged by the early demand, but any learnings in terms of share dynamics now that Novo Nordisk is in that market too, and they said this morning that they got 50% share within three weeks of launch? Thank you.

Speaker #2: Great. Thanks for taking the question and congrats on the continued strong performance and execution. Maybe just on the foundation launch, in the US, the launch curve has been somewhat slower than anticipated.

Speaker #2: Just curious as to what you think the contributing factors that are there and when you think we could expect an inflection. And then on OUS, just curious to hear on any updated thoughts on how you're thinking about competitive dynamics and the launch trajectory Novo is now also scaling launches for their oral pill in several key ex-US countries.

Speaker #2: View, such as the UK and Germany. And in the UAE, know you said you were encouraged by the early demand, but any learnings in terms of share dynamics now that Novo is in that market too, and they said this morning that they got 50% share within three weeks of launch.

Speaker #2: Thank you.

Speaker #3: Great. Thanks, Asad. We'll stick with the same deal here. If you want to start with talking about progress in the US foundation launch and then Patrick, you can add some color on ex-US.

Michael Czapar: Great. Thanks, Asad Haider. We will stick with the same duo here. If, Ili, you want to start with talking about progress in the US Foundayo launch, then Patrik, you can add some color on ex-US.

Mike Czapar: Great. Thanks, Asad Haider. We will stick with the same duo here. If, Ili, you want to start with talking about progress in the US Foundayo launch, then Patrik, you can add some color on ex-US.

Speaker #2: Sure, thanks, Asad. So, listen, for Foundation, we're making pretty meaningful progress on the Foundation performance and building out the brand, as we said from the start.

Ilya Yuffa: Sure. Thanks, Asad Haider. Listen, for Foundayo, we are making pretty meaningful progress on the Foundayo performance and building out the brand. As we said from the start.

Ilya Yuffa: Sure. Thanks, Asad Haider. Listen, for Foundayo, we are making pretty meaningful progress on the Foundayo performance and building out the brand. As we said from the start. We are focusing on three key areas.

Speaker #2: We're focusing on three key areas. One is making sure we educate physicians on the foundation profile. And building out that experience the second is really achieving greater access and affordability for foundation.

Ilya Yuffa: We are focusing on three key areas. One is making sure we educate physicians on the Foundayo profile and building out that experience. The second is really achieving greater access and affordability for Foundayo, and then the third is building out consumer awareness. We are making progress on all three fronts. We are seeing the leading indicators being pretty positive overall. We are seeing week-to-week growth in overall prescriptions and uptake for Foundayo. With building out, just if you take a look at the last three days, we have increased access with CVS adding Foundayo in June. Obviously, you have seen the launch of Medicare GLP-1 Bridge happening 1 July, and we started the launch of our full DTC promotion campaign, Foundayo, to build out consumer and physician awareness. What we have seen in terms of overall growth and inflection is that the last week of July, we are seeing an inflection.

Ilya Yuffa: One is making sure we educate physicians on the Foundayo profile and building out that experience. The second is really achieving greater access and affordability for Foundayo, and then the third is building out consumer awareness. We are making progress on all three fronts. We are seeing the leading indicators being pretty positive overall. We are seeing week-to-week growth in overall prescriptions and uptake for Foundayo. With building out, just if you take a look at the last three days, we have increased access with CVS adding Foundayo in June. Obviously, you have seen the launch of Medicare GLP-1 Bridge happening 1 July, and we started the launch of our full DTC promotion campaign, Foundayo, to build out consumer and physician awareness. What we have seen in terms of overall growth and inflection is that the last week of July, we are seeing an inflection.

Speaker #2: And then the third is building out the consumer awareness. And we're making progress on all three fronts. So we're seeing the leading indicators being pretty positive overall.

Speaker #2: We're seeing week to week growth in overall prescriptions and uptake for foundation. And with building out just if you take a look at the last 30 days, we've increased access with CVS adding foundation in June.

Speaker #2: We've obviously you've seen the launch of BRIDGE happening July 1. And we started the launch of our full DTC promotion campaign foundation to build out consumer and physician awareness.

Speaker #2: And what we've seen in terms of overall growth and inflection is that the last week of July, we're seeing an inflection. So the we're almost doubling the volume that we had just a month ago.

Ilya Yuffa: We're almost doubling the volume that we had just a month ago, we're starting to see new starts coming in yearly, around one out of four starting on Foundayo. We're starting to see an inflection point on Foundayo now. With continued access, growth, and overall HCP adoption, we believe that we'll continue to see growth in Foundayo over the coming quarters.

Speaker #2: And we're starting to see new starts coming in nearly around one out of four starting on foundation. So we're starting to see an inflection point on foundation now.

Speaker #2: And with continued access growth and overall HCP adoption, we believe that we'll continue to see growth in foundation over the coming quarters.

Speaker #3: Patrick.

Speaker #6: And OUS, when we looked at the first launch, we launched in UAE early May. And we actually had a strong start. And with early signals showing that orals are expanding the market.

Patrik Jonsson: OUS, when we looked at the first launch, we launched in UAE early May, we actually had a strong start, with early signals showing that orals are expanding the market. Similarly to the US, we see that most patients are actually naive to treatment with incretin, patients are titrating up steadily. When we look at Lilly's combined incretin share held steady, even if we had a second oral entering the market. When we look ahead, we have the approval in Mexico and Saudi, those are the markets where we will launch next, most of the launches will come in 2027. I think we are extremely well-positioned here in terms of supply, there will be no gating of launches either.

Speaker #6: And similarly to the US, we see about those patients are actually naive to treatment with increase in. And patients are titrating up steadily. And when we look at the LILLYs combined, increasing share held steady even if we had a second oral entering the market.

Speaker #6: When we look ahead, we have the approval in Mexico and Saudi and those of the markets where we will launch next. And most of the launches will come in 2027.

Speaker #6: But I think we are extremely well positioned here in terms of supplies. There will be no gating of launches either. Just in general, we need to have in mind that this is very early data.

Patrik Jonsson: Just in general, we need to have in mind that this is very early data, there is a lot of noise in the data set. I think when data are being referred to, it's very often sell-in data, that takes into account all of the dynamics within Votorantim. On our side, very pleased with the start of the launch of Foundayo outside the US.

Speaker #6: And there is a lot of noise in the data set so I think when things are being referred to, it's very often sell-in data and that takes into account all of the dynamics with inventory bill.

Speaker #6: But on our side, very pleased with the start of the launch of foundation outside the US.

Michael Czapar: Great. Thanks, both. Next question, please.

Mike Czapar: Great. Thanks, both. Next question, please.

Speaker #3: Great. Thanks both. Next question, please.

Speaker #4: The next question will be from Courtney Breen from Bernstein. Courtney, your line is live.

Operator 3: The next question will be from Courtney Breen from Bernstein. Courtney, your line is live.

Operator: The next question will be from Courtney Breen from Bernstein. Courtney, your line is live.

Courtney Breen: Lilly team, thanks so much for taking the question today. I did just want to probe on the retatrutide regulatory pathway. Dan, I noticed you mentioned the BLA pathway, and I know that you've been negotiating, perhaps challenging the FDA over the last couple of years in terms of that determination as to whether retatrutide meets the criteria for a BLA. Can you just help us understand the requirements and milestones ahead in ensuring that this is accepted as a BLA? Anything that will help us understand whether this is going to be unique to retatrutide or whether there are going to be subsequent incretins that are going to be able to get classified as a BLA going forward. Thank you so much.

Speaker #5: LILLY team, thanks so much for taking the question today. I did just want to probe on the Ready True Tide regulatory pathway. Dan, I noticed you mentioned kind of the BLA pathway.

Speaker #5: And I know that you've been negotiating perhaps challenging the FDA over the last couple of years. In terms of that determination as to whether Ready True Tide is meets the criteria for a BLA.

Speaker #5: Can you just help us understand the requirements and milestones ahead in ensuring that this is accepted as a BLA? And anything that kind of will help us understand whether this is going to be unique to Ready True Tide or whether there are going to be subsequent incretins that are going to be able to get classified as a BLA going forward.

Speaker #5: Thank you so much.

Speaker #3: Thanks, Courtney. We'll go to Dave to talk about the Ready True Tide filing pathway.

Michael Czapar: Thanks, Courtney. We'll go to Dave to talk about the retatrutide filing pathway.

Mike Czapar: Thanks, Courtney. We'll go to Dave to talk about the retatrutide filing pathway.

Speaker #2: Yeah. Thanks, Courtney. As you mentioned, we've been pursuing this for a little while because we believe Ready True Tide is a biologic application. Both in terms of amino acid count rule as well as analogous to a protein.

David Ricks: Yeah. Thanks, Courtney. As you mentioned, we've been pursuing this for a little while because we believe retatrutide is a biologic application, both in terms of amino acid count rule as well as analogous to a protein. That's our position. There was a mixed decision in the first decision in the courts. Obviously, it's active litigation, we would hope to come to a conclusion with the FDA to support a BLA application. As you may know, we have announced at the end of our clinical program that we have all the clinical data we need to submit, we do need to gather a little bit more on the CMC side. While that's going on, you can bet we're in communication with the agency, we'll give an update to investors as there's any progress on the filing status for retatrutide. Super exciting data package.

Dave Ricks: Yeah. Thanks, Courtney. As you mentioned, we've been pursuing this for a little while because we believe retatrutide is a biologic application, both in terms of amino acid count rule as well as analogous to a protein. That's our position. There was a mixed decision in the first decision in the courts. Obviously, it's active litigation, we would hope to come to a conclusion with the FDA to support a BLA application. As you may know, we have announced at the end of our clinical program that we have all the clinical data we need to submit, we do need to gather a little bit more on the CMC side. While that's going on, you can bet we're in communication with the agency, we'll give an update to investors as there's any progress on the filing status for retatrutide. Super exciting data package.

Speaker #2: So that's our position. There was a mixed decision in the first decision in the courts. Obviously, it's an active litigation. But we would hope to come to a conclusion with the FDA to support a BLA application.

Speaker #2: As you may know, we announced at the end of our clinical program that we have all the clinical data we need to submit.

Speaker #2: But we do need to gather a little bit more on the CM&C side. While that's going on, you could bet we're in communication with the agency and we'll give an update to investors as there's any progress on the filing status for Ready True Tide.

Speaker #2: But super exciting data package. I think we're seeing really unprecedented efficacy with this triple acting GLP-1. We have a pretty large lead over any competitors with a triple acting medicine.

David Ricks: I think we're seeing really unprecedented efficacy with this triple-acting GLP-1. We have a pretty large lead over any competitors with a triple-acting medicine, and we pursued a very interesting, I think, package of comorbidities in both the initial package and now in subsequent data that will read out over the coming year or so. Very excited about the program and look forward to the submission by Q1 next year.

Dave Ricks: I think we're seeing really unprecedented efficacy with this triple-acting GLP-1. We have a pretty large lead over any competitors with a triple-acting medicine, and we pursued a very interesting, I think, package of comorbidities in both the initial package and now in subsequent data that will read out over the coming year or so. Very excited about the program and look forward to the submission by Q1 next year.

Speaker #2: And we pursued a very interesting, I think, package of comorbidities in both the initial package and now in subsequent data that we'll read out over the coming year or so.

Speaker #2: So very excited about the program and look forward to the submission by Q1 next year.

Speaker #3: Great. Next question, please.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #4: And the next question will be from Chris Schott from JP Morgan. Chris, your line is live.

Operator 3: The next question will be from Chris Schott from J.P. Morgan. Chris, your line is live.

Operator: The next question will be from Chris Schott from J.P. Morgan. Chris, your line is live.

Speaker #7: Great, thanks so much. And congrats on all the progress. I know it's early, but can you just elaborate a bit more on the Medicare obesity rollout and any learnings and surprises there thus far?

Chris Schott: Great. Thanks so much. Congrats on all the progress. I know it's early, but can you just elaborate a bit more on the Medicare obesity rollout and any learnings and surprises there thus far? Maybe as part of that, can you just touch on maybe the ramp curve we've seen initially, what you're seeing in orals versus injectables, et cetera, just trying to get a sense of how you're feeling this is going so far. Thanks so much.

Speaker #7: Maybe as part of that, can you just touch on maybe the ramp curve we've seen initially? What you're seeing in orals versus injectables, et cetera?

Speaker #7: Just trying to get a sense of what your how you're feeling this is going so far. Thanks so much.

Speaker #3: Great. Thanks, Chris. We'll go to ILLY to talk about the Medicare GLP-1 BRIDGE rollout and any context on orals versus injectables.

Michael Czapar: Great. Thanks, Chris. We'll go to Ilya to talk about the Medicare GLP-1 Bridge rollout and any context on orals versus injectables.

Mike Czapar: Great. Thanks, Chris. We'll go to Ilya to talk about the Medicare GLP-1 Bridge rollout and any context on orals versus injectables.

Ilya Yuffa: Great. Thanks, Chris. We're really excited about, one, expanding access for seniors in the US, as David mentioned in the early part of the call, that it's increasing access to about 35% more Americans being able to access obesity therapy. If you think about the start, it's still early days. At the same time, we're seeing a pretty significant inflection point. We're closely with CMS on educating physicians and different stakeholders, pharmacies,

Speaker #2: Great. Thanks, Chris. We're really excited about, one, expanding access for seniors in the US as David mentioned in the early part of the call that it's increasing access to about 35% more Americans being able to access obesity therapy.

Speaker #2: If you think about the start, it's still early days. At the same time, we're seeing a pretty significant inflection point. We're closely on with CMES on a CMS on educating physicians in different stakeholders, pharmacies, on the criterion process.

Ilya Yuffa: On the criterion process. That process is working pretty well in terms of the prior authorization and approvals of people that qualify. The criteria are clear. We're continuing to do pretty extensive education across consumers, physicians, and pharmacies to understand the criteria so that they know whether or not they can benefit. We've also enabled LillyDirect to fulfill on the Bridge process. In terms of momentum, you can see an inflection point for both of our medicines, Zepbound and Foundayo, over the last few weeks. Part of that is Bridge. We're seeing a significant preference towards injectable, probably around 80% of people that are getting treatment are injectable. We're seeing new patients for both, and we approximate around 60% to 70% being new people that are coming in that have not had access before.

Speaker #2: That process is working pretty well in terms of the prior authorization. And approvals of people that qualify. And so the criteria are clear. We're continuing to do pretty extensive education across consumers, physicians, and pharmacies to understand the criteria so that they know whether or not they can benefit.

Speaker #2: And we've also enabled LILLY Direct to fulfill on the BRIDGE process. And in terms of momentum, you can see an inflection point for both of our medicines, Zepbound and Foundation, over the last few weeks.

Speaker #2: Part of that is BRIDGE. The approximate we're seeing a significant preference towards injectable, probably around 80% of people that are getting treatment or injectable.

Speaker #2: But we're seeing new patients for both. And we have approximately around 60 to 70% being new people that are coming in that have not had access before.

Speaker #2: So it's still early days, but we're encouraged by the inflection point over the last few weeks. And we'll continue to work on educating consumers and stakeholders on the benefit of the BRIDGE program.

Ilya Yuffa: It's still early days, but we're encouraged by the inflection point over the last few weeks, and we'll continue to work on educating consumers and stakeholders on the benefit of the Bridge program.

Speaker #3: Great. Next question, please.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #4: The next question will be from Jeff Meacham from Citibank. Jeff, your line is live.

Operator 3: The next question will be from Geoff Meacham from Citi. Jeff, your line is live.

Operator: The next question will be from Geoff Meacham from Citi. Jeff, your line is live.

Speaker #3: Courtney, I have one. Thanks for the question. Also on this, I congrats on the quarter had two related ones on Ready True Tide. The first one is, do you need a commercial strategy to protect against whatever it is that's apparently available today or will that solve itself with formal approval?

Geoff Meacham: Morning, everyone. Thanks for the question. Also want to say congrats on the quarter. Had two related ones on retatrutide. The first one is, do you need a commercial strategy to protect against whatever it is that's apparently available today, or will that solve itself with formal approval? Related, you guys have expanded the indication base for tirzepatide well beyond diabesity. With the higher efficacy of retatrutide, are there additional indications that you can now address that otherwise perhaps you couldn't? Thank you.

Speaker #3: And then related, you guys have expanded the indication base for tirzepatide well beyond diabetes with the higher efficacy of Ready True Tide. Are there additional indications that you can now address that otherwise perhaps you couldn't?

Speaker #3: Thank you. Great. Thanks, Jeff. We'll go to Ken to talk about the development strategy on Ready True Tide. And then any comments about commercial strategy as well.

Michael Czapar: Great. Thanks, Jeff. We'll go to Ken to talk about the development strategy on retatrutide, any comments about commercial strategy as well.

Mike Czapar: Great. Thanks, Jeff. We'll go to Ken to talk about the development strategy on retatrutide, any comments about commercial strategy as well.

Speaker #2: Yeah. Thanks for the question. Jeff, first of all, I think people are eagerly awaiting authentic Ready True Tide to be available in the market.

Ken Custer: Yeah. Thanks for the question, Geoff. First of all, I think people are eagerly awaiting authentic retatrutide to be available in the market, and we fully expect that when we get this medicine to market, people will vote with their feet and embrace the really guaranteed product. In terms of development strategy, what we do have a broad base with tirzepatide of indications. With Retta, we're seeing in terms of really transformative weight loss at the high dose end. It does open up additional opportunities. You've seen that with the data we've shared on osteoarthritis knee pain, both from TRIUMPH-4 and TRIUMPH-1, where you're effectively reducing pain by unprecedented amounts, 75%. I think that's exemplary of the sorts of opportunities we have ahead with this molecule.

Speaker #2: And we fully expect that when we get this to medicine to market, people will vote with their feet and embrace the really guaranteed product.

Speaker #2: In terms of development strategy, what we do have a broad base with tirzepatide of indications. With RETA, we're seeing in terms of really transformative weight loss at the high dose end.

Speaker #2: It does open up additional opportunities. You've seen that with the data we've shared on osteoarthritis, knee pain, both from Triumph 4 and Triumph 1, where you're effectively reducing pain by unprecedented amounts, 75%.

Speaker #2: I think that's exemplary of the sorts of opportunities we have ahead with this molecule. We're also advancing it in a study in MASH. Or MASLD, which is ongoing.

Ken Custer: We're also advancing it in a study in MASH or MASLD, which is ongoing, and then which we think the glucagon mechanism of action there offers some potential unique opportunities. We're also evaluating several additional indication opportunities here internally and may have more to say in the future on that. Last, I'll circle back to pain. We also have a chronic lower back pain study ongoing with Retta, which will read out sometime next year. Overall, a very exciting medicine that we think can do a lot of work in the treatment of obesity, both on the high end with bariatric surgery like weight loss, and on the low end with just the simplicity of a single titration step. We'll look to expand the indication set and really maximize this opportunity.

Speaker #2: And then which we think the glucagon mechanism of action there offers some potential unique opportunities. But we're also evaluating several additional indication opportunities here internally and may have more to say in the future on that.

Speaker #2: Last I'll circle back to pain. We also have a chronic lower back pain study ongoing with RETA, which you'll read out sometime next year.

Speaker #2: So overall, I'm very exciting medicine that we think can do a lot of work in the treatment of obesity, both on the high end with bariatric surgery like weight loss and on the low end with just the simplicity of a single titration step.

Speaker #2: We'll look to expand the indication set and really maximize those opportunities.

Speaker #3: Great. Next question, please.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #4: The next question will be from Mohit Bansal from Wells Fargo. Mohit, your line is live.

Operator 3: The next question will be from Mohit Bansal from Wells Fargo. Mohit, your line is live.

Operator: The next question will be from Mohit Bansal from Wells Fargo. Mohit, your line is live.

Mohit Bansal: Great. Thank you very much for taking my question and congrats on the progress. I'll ask a non-incredible question for extra credit. For breast cancer, would love to understand how you are thinking about the post-Verzenio strategy in breast cancer at this point. You have cert, you also have oral PI3K. Is there an all-oral combo on the table as well? Thank you.

Speaker #2: Great. Thank you very much for taking my question in congrats on the progress. I'll ask a non-increasing question for extra credit. So for breast cancer, we'd love to understand what how you are thinking about the post-Fresenius strategy in breast cancer at this point.

Speaker #2: You have said you also have oral PI3K. So is there an all-oral combo on the table as well? Thank you.

Speaker #3: Great. Thanks, Mohit. And extra credit, duly noted. Jake, we'll go to you to talk about the breast cancer strategy after Fresenius.

Michael Czapar: Great. Thanks, Mohit, and extra credit duly noted. Jake, we'll go to you to talk about the breast cancer strategy after Verzenio.

Mike Czapar: Great. Thanks, Mohit, and extra credit duly noted. Jake, we'll go to you to talk about the breast cancer strategy after Verzenio.

Speaker #5: Yeah. Thanks, Mohit, for the question. We're really excited about the presence that we have in breast cancer historically and going forward. I think the three most important targets in breast cancer are the estrogen receptor, CDK4/6, and PI3 kinase alpha.

Jake VanArnam: Thanks, Mohit, for the question. We're really excited about the presence that we have in breast cancer historically and going forward. I think the three most important targets in breast cancer are the estrogen receptor, CDK4/6, and PI3K-alpha. We think we have the best medicines for every single one of those targets, and we have plans to combine them all. Know about what we're doing with imlunestrant, currently an approved product as Inluriyo with EMBER-4 slated to read out next year, the adjuvant trial that is a major moment for that medicine. We're on the precipice of beginning the phase III program for tersolisib, the PI3K delta inhibitor, which will be initially combined with existing endocrine therapies.

Jake Van Naarden: Thanks, Mohit, for the question. We're really excited about the presence that we have in breast cancer historically and going forward. I think the three most important targets in breast cancer are the estrogen receptor, CDK4/6, and PI3K-alpha. We think we have the best medicines for every single one of those targets, and we have plans to combine them all. Know about what we're doing with imlunestrant, currently an approved product as Inluriyo with EMBER-4 slated to read out next year, the adjuvant trial that is a major moment for that medicine. We're on the precipice of beginning the phase III program for tersolisib, the PI3K delta inhibitor, which will be initially combined with existing endocrine therapies.

Speaker #5: We think we have the best medicines for every single one of those targets. And we have plans to combine them all. We know about what we're doing with Immunestrant.

Speaker #5: Currently, an approved product that's in Lirio with Ember 4 slated to read out next year, the adjuvant trial that is a major moment for that medicine.

Speaker #5: And we're on the precipice of beginning the phase three program for tirzalis of the PI3 kinase alpha inhibitor, which will be initially combined with existing endocrine therapies, but over time, we envision absolutely combining with in Lirio.

Jake VanArnam: Over time, we envision absolutely combining with Inluriyo, and even in the existing study will be combined with investigators' choice of CDK4/6, a large part of which I think will be Verzenio. We're really excited about the potential for that all-oral combination in a variety of settings down the road. Thank you.

Jake Van Naarden: Over time, we envision absolutely combining with Inluriyo, and even in the existing study will be combined with investigators' choice of CDK4/6, a large part of which I think will be Verzenio. We're really excited about the potential for that all-oral combination in a variety of settings down the road. Thank you.

Speaker #5: And even in the existing study, we'll be combined with investigators' choice of CDK4/6, a large part of which I think will be Fresenius. So we're really excited about the potential for that all-oral combination.

Speaker #5: In a variety of settings, down the road. Thank you.

Speaker #3: Great. The next question, please.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #4: The next question will be from Akash Tawari from Jefferies. Akash, your line is live.

Operator 3: The next question will be from Akash Tewari from Jefferies. Akash, your line is live.

Operator: The next question will be from Akash Tewari from Jefferies. Akash, your line is live.

Speaker #6: Hey. Thanks so much. So it seems like your guidance is almost implying a deceleration in REVS versus Q2 for the back half of the year.

Akash Tewari: Hey, thanks so much. It seems like your guidance is almost implying a deceleration in revs versus Q2 for the back half of the year, and that seems unlikely given the Medicare Bridge programs ramping up along with Foundayo commercial access getting online. Is there anything we're missing here maybe on price, or is your team generally trying to be conservative here? Thank you.

Speaker #6: And that seems unlikely, given the Medicare BRIDGE programs ramping up, along with Fondeo commercial access getting online. Is there anything we're missing here, maybe on price?

Speaker #6: Or is your team generally trying to be conservative here? Thank you.

Speaker #3: All right. Thanks, Akash. We'll go to Lucas to talk about the moving parts and guidance.

Michael Czapar: All right. Thanks, Akash. We'll go to Lucas to talk about the moving parts and guidance.

Mike Czapar: All right. Thanks, Akash. We'll go to Lucas to talk about the moving parts and guidance.

Speaker #2: Yeah. Thank you, Akash, for the question. Maybe a few parts. Very pleased, by the way, to continue to see the strong performance that we see not only in the first half of the year, but also upgrading the guide by 2.5 billion dollars for the full year.

Lucas Montarce: Yeah. Thank you, Akash, for the question. Maybe a few parts. Very pleased, by the way, to continue to see the strong performance that we see not only in H1, but also upgrading the guide by $2.5 billion for the full year. To your point about what are the kind of the ins and outs on the guide

Speaker #2: To your point about what are the kind of the ins and outs on the guide, I think it's worth to highlight in the last couple of quarters that there were a few one-offs that we call it out in the calls as well, pre-op period adjustments that we have on our estimates for rebates and discounts in the US, including this quarter.

Lucas Montarce: I think it is worth highlighting in the last couple of quarters that there were a few one-offs that we called out in the calls as well, prior period adjustments that we have on our estimates for rebates and discounts in the US, including this quarter. Those, of course, we do not expect that will continue into H2. That is something that once you look at the model, it is important to factor that. You mentioned the comparison in terms of growth versus last year. What is important, if you look at the base period, the 2025 period, remember that in H2, basically, we had all the bolus of the launches of Mounjaro in our US markets. That was basically adding a lot of, again, new countries and volume into H2.

Speaker #2: Those, of course, we don't expect that will continue into the second part of the year. So that's something that once you look at it at the model, it is important to factor that.

Speaker #2: Then you mentioned the comparison in terms of growth versus last year. What is important if you look at the base period that the 2025 period, remember that in the second part of the year, basically we had all the bolus of the launches of Mounjaro in all US markets.

Speaker #2: That was basically adding a lot of, again, new countries and volume into the second part of the year. When you look at actually the growth that we expect to see in dollars, not in percentage of growth, we expect to continue to drive significant growth in the second part of the year as well.

Lucas Montarce: When you look at actually the growth that we expect to see in dollars, not in percentage of growth, we expect to continue to drive significant growth in H2 as well. Of course, again, that bolus of new countries, as Ole along highlighted, has already happened, will not happen again. As Patrik alluded as well, the growth that we expect to see in the future is more driven by the penetration in the OUS market. Those are some of the factors that is important to highlight. Last but not least, again, I know that some of you are fans of the seasonality effect, and I think it is worth highlighting that as well. We always have the seasonality in Europe in Q3 with all the vacation holidays taking place, and that is factored in our guide.

Speaker #2: Of course, again, that bolus of new countries has all along highlighted has already happened. Will not happen again. And as Patrick alluded as well, the growth that we expect to see in the future is more driven by the penetration in the all US market.

Speaker #2: So those are some of the factors that is important to highlight. Last but not least, again, I know that some of you are fans of the seasonality effects.

Speaker #2: And I think it's worth to highlight that as well. We always have the seasonality in Europe, in Q3, with all the vacation holidays taking place.

Speaker #2: And that's factoring in our guide. And usually, we have some seasonality in type 2 diabetes in the US in the fourth quarter. So those are some of the one-offs that I think is worth to call out as part of that we have been factoring in our guide.

Lucas Montarce: Usually, we have some seasonality in type 2 diabetes in the US in Q4. Those are some of the one-offs that I think is worth calling out as part of that we have been factoring in our guide. Thank you.

Speaker #2: Thank you.

Speaker #3: Great. Next question, please.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #4: The next question will be from Michael Yee from UBS. Michael, your line is live.

Operator 3: The next question will be from Michael Yee from UBS. Michael, your line is live.

Operator: The next question will be from Michael Yee from UBS. Michael, your line is live.

Speaker #7: Thanks. Talking about the strong all US launch, can you talk a little bit about which specific regions are seeing the most growth? And make a comment about India where I know there's a lot of noise about generic launching.

Michael Yee: Thanks. Talking about the strong OUS launch, can you talk a little bit about which specific regions are seeing the most growth? Make a comment about India, where I know there's a lot of noise about generic launching. I know there's some capacity constraints, as Reddy has made some comments. Maybe just talk about what you're seeing specifically there as well, even with generics launching. Thanks.

Speaker #7: I know there's some capacity constraints as Ready has made some comments. So maybe just talk about what you're seeing specifically there as well, even with generics launching.

Speaker #7: Thanks.

Speaker #3: Okay. Great. I assume we're talking about Mounjaro. So Patrick, to talk about the all US launch Mounjaro, kind of pocket the strength and then any early observations of generic semaglutide in India or other markets.

Michael Czapar: Okay, great. I assume we're talking about Mounjaro. Patrick, to talk about the OUS launch of Mounjaro, kind of pockets of strength, and then any early observations of generic semaglutide in India or other markets.

Mike Czapar: Okay, great. I assume we're talking about Mounjaro. Patrick, to talk about the OUS launch of Mounjaro, kind of pockets of strength, and then any early observations of generic semaglutide in India or other markets.

Speaker #2: Happy to do that. So, when you look at the performance of Mounjaro across the US, we actually continue to perform very strongly, more or less everywhere.

Patrik Jonsson: Happy to do that. When you look at the performance of Mounjaro OUS, we actually continue to perform very strongly, more or less everywhere. We have taken a market leadership position across many different markets. Among the key drivers, I would highlight China and ODL, where we obtained the category leadership already after 16 months. Beyond that, we see significant growth in Korea, the UK, Mexico, and Germany. In many markets, we have a market share today very similar to the level of the US or even above. In terms of learnings from the launch of generic semaglutide, if we look specifically at India and even Brazil, we continue to see TRX grow for Mounjaro even after the launch of generic semaglutide.

Speaker #2: And we have taken a market leadership position across many different markets. But among the key drivers, I would highlight the China NRDL, where we obtained the category leadership already after 16 months.

Speaker #2: But beyond that, we see significant growth in Korea, the UK, Mexico, and Germany. And in many markets, web and market share today very similar to the level of the US or even above.

Speaker #2: In terms of learnings from the launch of generic semaglutide, if we look specifically at India and even Brazil, we continue to see TRX growth for Mounjaro even after the launch of generic semaglutide.

Speaker #2: And I think that's driven by the strong differentiation we have with the superiority data, and I think that's the first line of defense. But we have also been pleasantly surprised with what we see in Canada, where actually the tirzepatide TRx continues to grow at the same pace as the total market TRx.

Patrik Jonsson: I think that's driven by the strong differentiation we have with the superiority data, and I think that's the first line of defense. We have also been pleasantly surprised with what we see in Canada, where actually the tirzepatide TRX continue to grow with the same pace as the total market TRX. We have also seen the generic companies actually having significant supply constraints. I think that's something that we need to monitor very closely. In essence, strong performance across the globe outside of the US, and so far the differentiation of tirzepatide seems to be a strong line of defense. Most importantly, our overall product portfolio will position us very well in the future as well here.

Speaker #2: And we have also seen the generic companies actually having significant supply constraints. So I think that's something that we need to monitor very closely.

Speaker #2: But in an essence, strong performance across the globe outside the US and so far the differentiation of tirzepatide seems to be a strong line of defense.

Speaker #2: And most importantly, our overall product portfolio will position us very well in the future as well here.

Speaker #3: Great. Next question, please.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #4: The next question will be from Terence Flynn from Morgan Stanley. Terence, your line is live.

Operator 3: The next question will be from Terence Flynn from Morgan Stanley. Terence, your line is live.

Operator: The next question will be from Terence Flynn from Morgan Stanley. Terence, your line is live.

Speaker #5: Great. Thanks for taking the question. Just on Fondeo, I was wondering if you could provide any insight on how extensive your sampling program is and if that's having any dampening effect on the IQVIA prescription data that we're all watching every Friday.

Terence Flynn: Great. Thanks for taking the question. Just on Foundayo, I was wondering if you could provide any insight on how extensive your sampling program is, and if that's having any dampening effect on the IQVIA prescription data that we're all watching every Friday. What are you seeing on the US prescribing base here? Are you seeing some expansion, and can you quantify that for us? Thank you.

Speaker #5: And what are you seeing on the US prescribing base here? Are you seeing some expansion? And can you quantify that for us? Thank you.

Michael Czapar: Okay, great. We'll go to Elias to talk about Foundayo sampling, US prescribers, and Terence's Fridays.

Mike Czapar: Okay, great. We'll go to Elias to talk about Foundayo sampling, US prescribers, and Terence's Fridays.

Speaker #3: Okay. Great. We'll go to Ilya to talk about Fondeo sampling. And US prescribing base and Terence's Fridays.

Speaker #6: Yeah. So on sampling and in general, like our full promotion, we've got pretty much every lever going on in terms of promotion. Sampling, we're incorporating the sample the first 30 days of the first dose.

Ilya Yuffa: Yeah. On sampling and in general, like our full promotion, we've got pretty much every lever going on in terms of promotion. Sampling, we're incorporating the sample the first 30 days of the first dose, pretty much similar to what you would see for a typical oral small molecule in the retail market. We have extensive sampling across the prescriber base, and we continue to have full supply to enable to do that, to get that first experience and understand the benefits of and safety of Foundayo. In terms of prescriber base, we've seen a pretty good uptick in continued growth in the number of prescribers. The last time we talked on earnings, we talked about 8,000 prescribers. We've now increased that to 36,000 prescribers.

Speaker #6: Pretty much similar to what you would see for a typical oral small molecule in the retail market. So we have extensive sampling across the prescriber base.

Speaker #6: And we continue to have full supply to enable to do that, to get that first experience and understand the benefits of and safety of Fondeo.

Speaker #6: In terms of prescriber base, we've seen a pretty good uptick and continued growth in the number of prescribers in the last time we had talked on earnings, we talked about about 8,000 prescribers.

Speaker #6: We've now increased that to 36,000 prescribers. And so we continue to see week on week and continued progress on the adoption, awareness. And the improved perception of Fondeo profile for people living with avoidant obesity.

Ilya Yuffa: We continue to see week on week continued progress on the adoption awareness and the improved perception of Foundayo profile for people living with overweight and obesity. We feel pretty good about going forward inflection points with increased access and consumer awareness.

Speaker #6: So we feel pretty good about going forward, with inflection points driven by increased access and consumer awareness.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #3: Great. Next question, please.

Speaker #4: The next question will be from Umair Rafat from Evercore. Umair, your line is live.

Operator 3: Next question will be from Umer Raffat from Evercore. Umer, your line is live.

Operator: Next question will be from Umer Raffat from Evercore. Umer, your line is live.

Speaker #7: Thanks, guys. I have a question on net pricing and obesity, if I may. So as you know, Zepbound's net price is about $580 per prescription, which is meaningfully higher than the cash pay price, but also higher than Wegovy net price of about $380 per prescription.

Umer Raffat: Thanks, guys. I have a question on net pricing and obesity, if I may. Dave, last quarter you mentioned there's a lot of medical exceptions that might be driving some of this delta, my question is how sustainable is that, especially given CVS is back on formulary, is this what drives the favorable rebate adjustments quarter after quarter? Thank you.

Speaker #7: So Dave, last quarter you mentioned there's a lot of medical exception. That might be driving some of this delta. And my question is, how sustainable is that?

Speaker #7: Especially given CVS is back on formulary. And is this what drives the favorable rebate adjustments quarter after quarter? Thank you.

Speaker #3: Thanks, Umair. We'll go to Lucas to talk a bit about net pricing of Mounjaro or Zepbound and any of the net exception dynamics.

Michael Czapar: Thanks, Umer. We'll go to Lucas to talk a bit about net pricing on Mounjaro or Zepbound and any of the net exception dynamics.

Mike Czapar: Thanks, Umer. We'll go to Lucas to talk a bit about net pricing on Mounjaro or Zepbound and any of the net exception dynamics.

Speaker #2: Yeah. Umair, thank you for the question. Maybe just to anchor this back on the prices on Zepbound. Different to many other molecules, by the way, there is a lot of transparency on all the different channels.

Lucas Montarce: Umer, thank you for the question. Maybe just to anchor this back on the prices on Zepbound, different to many other molecules, by the way, there is a lot of transparency on all the different channels, and you have all the access to see that data starting with LillyDirect and direct-to-patient prices. Again, you know that is starting point at $299 all the way to $449. Now you have the bridge program at $245 as well. Of course, again, you have then the commercial price, again, that is part of this equation. You mentioned medical exception. That's a driver. I think when you factor on your analysis as well, it's important to highlight again the size of the scripts as well. That is another driver that is affecting the price component that in particular in that commercial segment is impacting, of course, again, the price.

Speaker #2: And you have all the access to see that data, starting with leading direct on direct to patient prices, again, you know that is starting point at $299, all the way to $449.

Speaker #2: Now you have the bridge program at $245 as well. And of course, again, you have the commercial price that is part of this equation.

Speaker #2: You mentioned medical exception. That's a driver. I think what you when you factor on your analysis as well is important to highlight again the size of the scripts as well.

Speaker #2: That is another driver that is affecting the price component that in particular in that commercial segment is impacting, of course, again, the price, the you can then try to extrapolate what is the price per pack that is significantly lower than that.

Lucas Montarce: You can try to extrapolate what is the price per pack that is significantly lower than that. In terms of medical exceptions, yes, there are a few buckets. You mentioned one of them. For example, again, the template on CVS access that we are very happy that we accomplished now starting in Q4, will drive basically, as you know, since last year when, again, CVS moved to 101. There were three options basically for the patients back then, was one was to move to the competitor price product, basically, the other one was to go to the cash market, and the third one was to go through the medical exception process, going back to your point. We are happy actually, now all along our goal is to have access.

Speaker #2: In terms of medical exceptions, yes, there are a few buckets. You mentioned one of them, for example—the template on CVS access—that we are very happy we accomplished, now starting in Q4.

Speaker #2: We'll drive basically as you know, since last year when again CVS moved to 101, there were three options basically for the patients back then.

Speaker #2: Was one was to move to the competitor price product basically. The other one was to go to the cash market. And the third one was to go through the medical exception process going back to your point.

Speaker #2: We are happy actually and now all along our goal is to have access. The medical exception is maybe a short-term thing and our all along view is to have open access for all the patients so expect that price will actually go down for sure because of this.

Lucas Montarce: The medical exception is maybe a short-term thing, our all-along view is to have open access for all the patients. Expect that price to actually go down for sure because of this, it's very much embedded in our guide and is basically reset on, again, our expectations. Of course, we are going to more than offset that with volume growth.

Speaker #2: But it's very much embedded in our guide. And it's basically reset on again our expectations and of course, we are going to more than offset that with volume growth.

Michael Czapar: Great. Next question, please.

Mike Czapar: Great. Next question, please.

Speaker #3: Great. Next question, please.

Speaker #4: The next question will be from Jason Gerbery from Bank of America. Jason, your line is live.

Operator 3: The next question will be from Jason Gerberry from Bank of America. Jason, your line is live.

Operator: The next question will be from Jason Gerberry from Bank of America. Jason, your line is live.

Speaker #7: Hey, guys. Thanks for taking my question. Mine's just on M&A. You guys surprised investors, I think, getting back into psychiatry and with some vaccine deals.

Jason Gerberry: Hey, guys. Thanks for taking my question. Mine's just on M&A. You guys surprised investors, I think, getting back into psychiatry, and with some vaccine deals. I'm wondering if you think these two areas, psych and vaccines, are areas that Lilly can scale, and is this high priority, or do you see some of the assets as more one-off where you were just intrigued by the science? Just wondering if you can kind of characterize the strategy there. Thanks.

Speaker #7: And so I'm wondering if you think these two areas, psych and vaccines, are areas that really can scale. And is this high priority or do you see some of the assets as more one-off where you were just intrigued by the science?

Speaker #7: So just wondering if you can kind of characterize the strategy there. Thanks.

Speaker #3: Great. Thanks, Jason. We'll go to Jake to answer the question more broadly about the M&A strategy and then other work we're doing there.

Michael Czapar: Great. Thanks, Jason. We'll go to Jake to answer the question more broadly about the M&A strategy and the other work we're doing there.

Mike Czapar: Great. Thanks, Jason. We'll go to Jake to answer the question more broadly about the M&A strategy and the other work we're doing there.

Speaker #7: Yeah. Yeah. Thanks for the question. I think what these two areas have in common is just the immense unmet need that still remains and that really is the through line of all of the work that we do both internally and through business development.

Jake VanArnam: Yeah. Thanks for the question. I think what these two areas have in common is just the immense unmet need that still remains. That really is the through line of all of the work that we do, both internally and through business development. In this case, we saw an opportunity to acquire technology and medicines that we think have the potential to be really impactful and at prices that allow us to remain disciplined and create value long term for Lilly shareholders. It's not actually that different, frankly, than the many other deals that we've done year to date and the internal projects that we continue to pursue. Whether we continue to build more around infectious diseases and psychiatry specifically, to your question, I don't want to forward look too much on that because we'll be opportunistic based on what we see is available for acquisition and partnering.

Jake Van Naarden: Yeah. Thanks for the question. I think what these two areas have in common is just the immense unmet need that still remains. That really is the through line of all of the work that we do, both internally and through business development. In this case, we saw an opportunity to acquire technology and medicines that we think have the potential to be really impactful and at prices that allow us to remain disciplined and create value long term for Lilly shareholders. It's not actually that different, frankly, than the many other deals that we've done year to date and the internal projects that we continue to pursue. Whether we continue to build more around infectious diseases and psychiatry specifically, to your question, I don't want to forward look too much on that because we'll be opportunistic based on what we see is available for acquisition and partnering.

Speaker #7: So in this case, we saw an opportunity to acquire technology and medicines that we think have the potential to be really impactful and at prices that allow us to remain disciplined and create value long-term for Lilly shareholders.

Speaker #7: It's not actually that different frankly than the many other deals that we've done year to date. And the internal projects that we continue to pursue whether we continue to build more around infectious diseases and psychiatry specifically to your question, I don't want to forward look too much on that because we'll be opportunistic based on what we see it's available for acquisition and partnering.

Speaker #7: But I'm very excited about those two areas and the specific things that we purchased there. Thanks.

Jake VanArnam: Very excited about those two areas and the specific things that we purchased there. Thanks.

Jake Van Naarden: Very excited about those two areas and the specific things that we purchased there. Thanks.

Speaker #3: Great. We'll try to squeeze a couple more in, if we can.

Michael Czapar: Great. We'll try to squeeze a couple more in if we could.

Mike Czapar: Great. We'll try to squeeze a couple more in if we could.

Speaker #4: The next question will be from Louise Chen from Scotiabank. Louise, your line is live.

Operator 3: The next question will be from Louise Chen from Scotiabank. Louise, your line is live.

Operator: The next question will be from Louise Chen from Scotiabank. Louise, your line is live.

Louise Chen: Hi. Thanks for taking my question. I wanted to ask you about some of your other pipeline products outside of obesity. I know you've put a lot in there. Any specific assets, one or two that you're really excited about that you think the street should be paying more attention to? Thank you.

Speaker #8: Hi. Thanks for taking my question. I wanted to ask you about some of your other pipeline products outside of obesity. I know you've put a lot in there.

Speaker #8: Any specific assets, one or two that you're really excited about that you think the speech should be paying more attention to? Thank you.

Speaker #3: Great. Thanks for the question, Louise. We'll go to Dan to talk about other pipeline projects outside of obesity in any couple you want to highlight.

Michael Czapar: Great. Thanks for the question, Louise. We'll go to Dan to talk about other pipeline projects outside of obesity and any couple you want to highlight.

Mike Czapar: Great. Thanks for the question, Louise. We'll go to Dan to talk about other pipeline projects outside of obesity and any couple you want to highlight.

Speaker #9: Yeah. Thanks for the great question. We have a rich pipeline outside of obesity. Maybe I touch on some highlights by therapeutic area. Maybe starting in cardiovascular health, I mentioned the efforts we're doing in ASCVD with a gene editing for PCSK9.

Dan Skovronsky: Yeah. Thanks for the great question. We have a rich pipeline outside of obesity. Maybe I touch on some highlights by therapeutic area. Maybe starting in cardiovascular health, I mentioned the efforts we're doing in ASCVD with gene editing for PCSK9. We also have an oral and an injectable LPA-lowering drugs. Those are huge opportunities. We just commented on some of the new areas Jake mentioned, psychiatry and vaccines is also huge unmet areas. In neuroscience, beyond the psych expansion, we're excited about sleep-wake disorders with Centessa. A lot of growth going on in neuroscience as well. Diseases like addiction, major depressive disorder, which may be addressable with incretin science as well. It comes to oncology. I highlighted some of the exciting readouts. It's probably the richest period of oncology or readouts and molecule delivery that we've had at Lilly ever, probably.

Speaker #9: We also have an oral and an injectable LPA lowering drugs. Those are huge opportunities. We just commented on some of the new areas, Jake mentioned psychiatry and vaccines, also huge unmet areas.

Speaker #9: In neuroscience, beyond the psych expansion, we're excited about sleep-wake disorders with Synthesa. And then diseases like addiction, major depressive disorder, which may be addressable with Incretin science as well.

Speaker #9: So a lot of growth going on in neuroscience as well. And then come to oncology, I highlighted some of the exciting readouts. It's probably the richest period of oncology or readouts and molecule delivery that we've had at Lilly ever probably.

Dan Skovronsky: I'm excited about a number of those molecules, including the two recent deals that we announced, the Kelonia in vivo CAR T idea for multiple myeloma. That, I think, has a huge potential against a large unmet medical need, as well as the Ajax novel, a JAK inhibitor. Finally, in immunology, I commented on some of the progression that we're having with Ebglyss. It's still early days, I think, in watching what this drug can do. Excited to see it grow in the marketplace, and then new indications coming and new opportunities to continue to grow there in one of the largest segments of immunology right now. Behind that, a number of combination ideas coming in IBD as well as psoriatic diseases. Across our therapeutic areas, we have the strongest pipeline we've ever had.

Speaker #9: Excited about a number of those molecules, including the two recent deals that we announced, the Colonia in vivo CAR-T idea for multiple myeloma. That's a think has a huge potential against a large unmet medical need as well as the AJAC novel AJAC inhibitor.

Speaker #9: And then finally, in immunology, I commented on some of the progression that we're having with ABGLIS. It's still early days, I think, in watching what this drug can do. Excited to see it grow in the marketplace.

Speaker #9: And then new indications coming and new opportunities to continue to grow there. And one of the largest segments of immunology right now. And then behind that, a number of combination ideas coming in IBD as well as psoriatic diseases.

Speaker #9: So, across our therapeutic areas, we have the strongest pipeline we've ever had. If you eliminated kind of the incretin stuff, this would still be a really strong and large pipeline to be proud of.

Dan Skovronsky: If you eliminated the incretin stuff, this would be a really strong and large pipeline, though, to be proud of.

Michael Czapar: Great. Thanks, Dan. Paul, we'll do one last question, and then we'll close the call.

Mike Czapar: Great. Thanks, Dan. Paul, we'll do one last question, and then we'll close the call.

Speaker #3: Great. Thanks, Dan. Paul will do one last question and then we'll close the call.

Speaker #4: Okay. Final question today is coming from Dave Reisinger from Lyrinc. Dave, your line is live.

Operator 3: Okay. The final question today is coming from Dave Risinger from Leerink. Dave, your line is live.

Operator: Okay. The final question today is coming from Dave Risinger from Leerink. Dave, your line is live.

Speaker #3: Great. Thanks very much. So congrats on the phenomenal results. I just wanted to ask about Foundo XUS. So sales in the quarter in a single country, albeit a wealthy one, the UAE were 31 million dollars, which was close to half of the 67 million that Foundo generated, excuse me, in the US So although the pricing is probably relatively high in the UAE, the results would seem to suggest explosive potential for Foundo once it's launched throughout the world.

David Risinger: Great. Thanks very much. Congrats on the phenomenal results. I just wanted to ask about Foundayo ex US. Sales in the quarter in a single country, albeit a wealthy one, the UAE, were $31 million, which was close to half of the $67 million that Foundayo generated, excuse me, in the US. Although the pricing is probably relatively high in the UAE, the results would seem to suggest explosive potential for Foundayo once it's launched throughout the world. Could you comment on how you see its potential ex US for obesity? And then separately, how you see the opportunity for Foundayo to be paid for by ex US governments for diabetes. Do you think it will be better reimbursed than tirzepatide is, simply because you can offer it much cheaper to governments for diabetes than you offer tirzepatide? Any color would be helpful. Thank you.

Dave Risinger: Great. Thanks very much. Congrats on the phenomenal results. I just wanted to ask about Foundayo ex US. Sales in the quarter in a single country, albeit a wealthy one, the UAE, were $31 million, which was close to half of the $67 million that Foundayo generated, excuse me, in the US. Although the pricing is probably relatively high in the UAE, the results would seem to suggest explosive potential for Foundayo once it's launched throughout the world. Could you comment on how you see its potential ex US for obesity? And then separately, how you see the opportunity for Foundayo to be paid for by ex US governments for diabetes. Do you think it will be better reimbursed than tirzepatide is, simply because you can offer it much cheaper to governments for diabetes than you offer tirzepatide? Any color would be helpful. Thank you.

Speaker #3: Could you comment on how you see its potential XUS for obesity? And then separately, how you see the opportunity for Foundo to be paid for by XUS governments for diabetes?

Speaker #3: Do you think it will be better reimbursed than Terzepatide is simply because you can offer it much cheaper to governments for diabetes than you offer Terzepatide?

Speaker #3: Any color would be helpful. Thank you. Great. We'll go to Patrick to talk about Foundo Obesity Expectations XUS and then any color on thoughts on diabetes launch and reimbursement.

Michael Czapar: Great. We'll go to Patrik to talk about Foundayo obesity expectations ex US, and then any color on thoughts on diabetes launch and reimbursement.

Mike Czapar: Great. We'll go to Patrik to talk about Foundayo obesity expectations ex US, and then any color on thoughts on diabetes launch and reimbursement.

Speaker #2: Thank you very much. As I shared earlier, we are encouraged by the start in UAE, but also we need to consider that it's very early days and there is a lot of noise in the data.

Patrik Jonsson: Thank you very much. I shared earlier, we are encouraged by the start in UAE, but also we need to consider that it's very early days, and there is a lot of noise in the data. As always, when you launch a new medicine, there is an inventory build in the beginning as well, although there is a lot of demand created as well. What we have learned so far is that there is a need for an oral in treating both obesity and type 2 diabetes. I think we have seen that the majority of the patients are naive to increasing treatments. I think there is a significant opportunity. The major rollout for us, all US, will happen in the beginning of 2027 with major launches. Type 2 reimbursement.

Speaker #2: And as always, when you launch a new medicine, there is an inventory building at the beginning as well. Although there is a lot of demand created as well.

Speaker #2: What we have learned so far is that there. A need for an oral in treating both obesity and type 2 diabetes. And I think we have seen that a majority of the patients are naive to Incretin patients, to Incretin treatments.

Speaker #2: So I think there is a significant opportunity. The major rollout for us OUS will happen in the beginning of 2027 with major launches. Type 2 reimbursement, yes, I think we're probably slightly better positioned with an oral for type 2 reimbursement than the data we have seen so far for Folgepron with three head-to-head trials.

Patrik Jonsson: Yes, I think we're probably slightly better positioned with an oral for type 2 reimbursement. The data we have seen so far for orforglipron with three head-to-head trials, it's quite an appealing value proposition. Nevertheless, we know that reimbursement all US always takes time. The focus at the time of launch will be on chronic weight management and building up on the experiences we have had so far in US and UAE.

Speaker #2: It's quite an appealing value proposition. Nevertheless, we know that reimbursement OUS always takes time. So the focus at the time of launch will be on chronic weight management and building up on the experiences we have had so far in US and UAE.

Michael Czapar: Great. Thanks, Patrik. Dave, do you want us to close?

Mike Czapar: Great. Thanks, Patrik. Dave, do you want us to close?

Speaker #3: Great. Thanks, Patrick. Dave, do you comment some close?

Speaker #6: Yeah. Thank you all for joining us. We always appreciate your participation in our earnings calls. And your interest in ELI LILLY. As usual, please follow up with the IR team if you have questions we didn't have a chance to get to today.

David Ricks: Yeah. Thank you all for joining us. We always appreciate your participation in our earnings calls and your interest in Eli Lilly. As usual, please follow up with the IR team if you have questions we didn't have a chance to get to today, and have a great day. Thanks.

Dave Ricks: Yeah. Thank you all for joining us. We always appreciate your participation in our earnings calls and your interest in Eli Lilly. As usual, please follow up with the IR team if you have questions we didn't have a chance to get to today, and have a great day. Thanks.

Speaker #6: And have a great day. Thanks.

Speaker #4: Thank you. Ladies and gentlemen, this does conclude our conference for today. And this conference will be made available for replay beginning at 1:00 PM today.

Operator 3: Thank you. Ladies and gentlemen, this does conclude our conference for today. This conference will be made available for replay beginning at 1:00 PM today, running through 8 September at midnight. You may access the replay system at any time by dialing 800-332-6854 and entering the access code 606589. International dialers can call 973-528-0005. Again, those numbers are 800-332-6854 and 973-528-0005 with the access code 606589. Thank you for your participation. You may now disconnect your lines.

Operator: Thank you. Ladies and gentlemen, this does conclude our conference for today. This conference will be made available for replay beginning at 1:00 PM today, running through 8 September at midnight. You may access the replay system at any time by dialing 800-332-6854 and entering the access code 606589. International dialers can call 973-528-0005. Again, those numbers are 800-332-6854 and 973-528-0005 with the access code 606589. Thank you for your participation. You may now disconnect your lines.

Speaker #4: Running through September 8th at midnight. You may access the replay system at any time by dialing 800-332-6854 and entering the access code 606589. International dialers can call 973-528-0005.

Q2 2026 Eli Lilly & Co Earnings Call

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