00:00 Speaker A
Eli Lilly raising its full-year forecast after topping the street’s expectations for the second quarter. Despite the strong results, though, news about its highly anticipated weight loss pill is weighing on the shares in pre-market trading. Here with the details, our senior health reporter, Angeli Camalani. So really interesting, this is what the street was waiting for.
00:18 Angelika Camalani
Yeah, that’s right. This pill details are what the street was waiting for. Uh we we’re looking at how that pans out really in the GLP1 pill race. First, let’s get to earnings results, though. As you noted, a solid beat what the street was looking for. And really good news coming after Novo Nordisk’s disappointment yesterday as you can see, uh almost a billion in revenue over and then a solid beat on earnings per share. Meanwhile, let’s look at those pill details. So Orforglipron, the the GLP1 pill that Eli Lilly has, lots of uh hope behind it and momentum behind it to be first on market and to be best in market, following the trend of its GLP1 uh injectables. Meanwhile, the results were slightly disappointing, 11% weight loss. If you recall, Novo Nordisk also has a pill in trials with 16% weight loss. So it’s below the competitor. Meanwhile, 24% drop off at the highest dose, and that is something that uh investors are also looking to get some clarity on why there was such a high level of drop off on the highest dose because that could mean that patients won’t necessarily see through. Now, some investors do think that these results are not necessarily as disappointing and doctors will still prescribe this. The idea behind the pill race is that it is much more convenient than the injectables, and it is likely to then still provide some relief to the access uh situation of injectables right now. Meanwhile, uh Eli Lilly CEO Dave Ricks on the earnings call today talking about uh most favored nations. I know we’ve talked a lot about that on this show and addressing that idea, he said quote, if we import controls, we risk the worst of two worlds, the low productivity of Europe sector and the high out of pocket prices of the US insurance market, meaning that cost shifting will then be put on US patients. So there’s a lot to sort of think about there. The the company along with other big pharma companies has been pretty adamant about the idea that in Europe, the system is much different and there aren’t PBMs, there aren’t hospitals, there aren’t other uh, you know, players that are looking to make a buck off of the drugs, and so that is why they can afford to do the pricing there. And so we’ll have to see how all of that resonates with DC.
04:25 Speaker A
We will. And we’re also going to dig more into Lily with Evan Seegerman, an analyst who covers the stock in the next hour. So and you’ll be back for that, Ange. So thanks for that.
