LLY - Eli Lilly and Company (LLY) Q1 2024 Earnings Call Transcript

2024-04-30 13:27:09 ET

Eli Lilly and Company (LLY)

Q1 2024 Earnings Conference Call

April 30, 2024 10:00 AM ET

Company Participants

Joe Fletcher – Senior Vice President-Investor Relations

Dave Ricks – Chief Executive Officer

Anat Ashkenazi – Chief Financial Officer

Dan Skovronsky – Chief Scientific Officer and President-Lilly Immunology

Anne White – President-Lilly Neuroscience

Jake Van Naarden – President-Loxo

Patrik Jonsson – President-Lilly Diabetes and Obesity and Lilly USA

Conference Call Participants

Chris Schott – JPMorgan

Mohit Bansal – Wells Fargo

Umer Raffat – Evercore

Seamus Fernandez – Guggenheim

Tim Anderson – Wolfe Research

Terence Flynn – Morgan Stanley

Akash Tewari – Jefferies

Trung Huynh – UBS

Geoff Meacham – Bank of America

Kerry Holford – Berenberg

Steve Scala – TD Cowen

Evan Seigerman – BMO Capital Markets

David Risinger – Leerink Partners

Louise Chen – Cantor

Chris Shibutani – Goldman Sachs

Carter Gould – Barclays

Kripa Devarakonda – Truist Securities

James Shin – Deutsche Bank

Presentation

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Lilly Q1 2024 Earnings Call. At this time all participants are in a listen-only mode. Later we will be conducting a question-and-answer session and instructions will be given at that time. [Operator Instructions]

I would now like to turn the conference over to your host, Joe Fletcher, Senior Vice President of Investor Relations. Please go ahead.

Joe Fletcher

Thank you, Paul, and good morning everyone. Thank you for joining us for Eli Lilly and Company's Q1 2024 earnings call. I'm Joe Fletcher, Senior Vice President of Investor Relations. And joining me on today's call are Dave Ricks, Lilly's Chair and CEO; Anat Ashkenazi, Chief Financial Officer; Dr. Dan Skovronsky, Chief Scientific Officer and President of Lilly Immunology; Anne White, President of Lilly Neuroscience; Ilya Yuffa, President of Lilly International; Jake Van Naarden, President of Loxo at Lilly; and Patrik Jonsson, President of Lilly Diabetes and Obesity and Lilly USA. We're also joined by Michaela Irons, Mike Springnether and Lauren Zierki of the IR team.

During this conference call, we anticipate making projections and forward-looking statements based on our current expectations. Actual results could differ materially due to several factors, including those listed on Slide 2. 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. The information we provide about our products and pipeline is for the benefit of the investment community. It's not intended to be promotional and is not sufficient for prescribing decisions. As we transition to our prepared remarks, please note our commentary will focus on our non-GAAP financial measures.

Now I'll turn the call over to Dave

Dave Ricks

Okay. Thanks, Joe. We're pleased with our Q1 results and the continued momentum in our business, which positions us well for accelerated growth as this year progresses. Our focus is to bring innovative medicines to people in need. And in 2024, we're investing in our people, our launches, expanding our pipeline of new medicines, including through business development, and of course accelerating the needed capacity in our manufacturing network. Results this quarter represent a continuation of the strong growth we delivered in 2023.

On Slide 4, you can see details of the financial performance and progress related to our strategic deliverables. Revenue grew 26% in Q1 with our new products growing nearly $1.8 billion compared with the same period last year. We achieved several key pipeline milestones, including the positive Phase 3 results for tirzepatide in moderate-to-severe obstructive sleep apnea, the approval of our multi-dose KwikPen delivery device for Mounjaro in Europe, submission of mirikizumab in the U.S. and in EU for moderately to severely active Crohn's disease, the resubmission of lebrikizumab in the U.S. for moderate-to-severe atopic dermatitis and the initiation of our Phase 3 study for lepodisiran, evaluating efficacy and reducing cardiovascular risk.

Lilly's top priority is to ensure we execute on our ambitious manufacturing expansion agenda. We recently signed an agreement to acquire an injectable medicine facility from Nexus Pharmaceuticals in Pleasant Prairie, Wisconsin. This state-of-the-art facility has been FDA approved, and we are targeting to initiate production at the end of 2025. We broke ground earlier this month on our previously announced parenteral manufacturing site in Germany. And in existing facilities, we are working to maximize output and productivity to meet demand....

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