Eli Lilly and Company (LLY) Morgan Stanley 24th Annual Global Healthcare Conference summary

Obesity portfolio strategy and market segmentation

• Focus on addressing diverse patient needs with a broad portfolio, including oral and injectable therapies, to cover different entry points and health benefits in obesity treatment.

• Foundational products like tirzepatide and Zepbound are setting the standard, but utilization remains low, prompting expansion with new options like Foundayo and retatrutide.

• Ongoing development of additional assets such as eloralintide aims to improve tolerability and dosing frequency.

• Emphasis on consumer experience and relationship-building beyond just product offerings.

Access, coverage, and cost-effectiveness

• Commercial coverage for obesity treatments remains around 50%, with ongoing employer discussions and some recent removals and additions.

• The Medicare Bridge program is driving increased access, with standardized criteria and significant early uptake (about 600,000 users out of 20 million eligible).

• Cost-effectiveness studies show direct medical savings as early as six months, reaching up to $600 per month per person after a year, supporting the case for broader coverage.

• Employer engagement with wrapper services is increasing, with more expected to opt in by 2027.

Consumer orientation and digital initiatives

• LillyDirect and related programs aim to reduce healthcare system friction, increase transparency, and enhance the consumer experience.

• Experimentation with subscription-like models and journey programs to improve adherence and access.

• Plans to expand consumer-focused approaches to other disease areas.