Eli Lilly and Company (LLY) Bernstein 42nd Annual Strategic Decisions Conference summary

R&D strategy and differentiation

• Maintains a long-term, science-driven approach, investing more in R&D as a percentage of revenue than peers and focusing on persistent innovation in core areas like diabetes, oncology, and Alzheimer's disease.

• Prioritizes speed in drug development, now recognized as the fastest in the industry, enabling quicker learning cycles and product launches.

• Invests in new technology platforms, such as genetic medicines and cellular reprogramming, with a willingness to wait for long-term payoffs.

• Actively supports the broader innovation ecosystem through investments, partnerships, and sharing AI tools.

Asset allocation and portfolio management

• Makes R&D investment decisions with a 10-year outlook, focusing on next-generation innovation even at the risk of cannibalizing current products.

• Shifts resources to emerging areas like neuroscience, oncology, and immunology as diseases like obesity become more treatable.

AI and data as competitive advantages

• Integrates AI across all R&D stages, especially in drug discovery, enhancing efficiency and enabling work on previously undruggable targets.

• Proprietary biological and chemical data are seen as a key competitive moat, with ongoing efforts to expand and leverage unique datasets.