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

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And as we look at our capital investments in manufacturing sites this year alone, it’s probably the largest we’ve ever had doubling what we had in 2022. We’re looking at about $3.3 billion of investment just this year. So we’re looking at substantial expansion of capacity really across the globe to support not just Mounjaro obviously, but the rest of the portfolio and we have visibility into what’s coming as well as the fact that, as we’ve talked about before we have several products that are part of the same manufacturing network, and the same auto-injector platform. So that helps us kind of build that capacity across the Lilly portfolio.

Joe Fletcher: Thanks, Anat. Mike on the second question?

Mike Mason: Yeah. I think a good thing to focus on is access and obesity. I mean you look at the massive size of the obesity market 110 million people in the US, 650 million people globally but you really see that the historically that the obesity market has really been slow to develop. And it’s really because the treatments haven’t been adequate. So, the kind of €“ the question we had going into this market, was if a safe and efficacious treatment was developed would consumers and health care professionals and payers be interested in using it? Well, based on what we’ve seen in the marketplace over the past year and on a market research it’s clear that consumers and health care professionals will adopt an efficacious safe anti-obesity medication if patients can have access to it.

So it does come down to payer access, and we’re highly focused on doing that. Noble recently stated in their call that 40 million Americans have access to obesity and the way, they talked about it what’s payer access and employers opting into that. So if that’s where we’re at today that would be a great starting point for access. We’re deep into conversations with payers to understand the market and all that. Access discussions haven’t started yet, but will shortly. But our focus long term is to improve access for diabetes medications. We are investing significantly to demonstrate the potential health outcome benefits, where people using tirzepatide, who live with obesity. We’re also investing in Phase III programs for people, who live with obesity and sleep apnea, or heart failure and they should unlock large segments access for people who live with obesity in commercial and we hope Part D.

In addition, in my career, I’ve seen the power of consumer interest in helping to improve access for medication. And what we’ve seen over the last year is that, people who live with obesity are highly engaged and willing to do much access effective treatments. They will have an important walls with employers and the congressional representative advocate for access. So, while I think it will take time to establish our ultimate actions goal, I’m more encouraged than ever are potential unlock the obesity market and help a lot of people. So I’m encouraged, but obviously a lot of work still to be done.

Joe Fletcher: Thank you, both, and thanks Terence for the question. Lois, next question.

Operator: The next question is from Steve Scala from Cowen. Please go ahead.

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