LLY · Q2 2025 Earnings

Ken Custer highlighted that 27 pounds of weight loss from a once-daily oral pill with improvements in blood pressure, lipids, and inflammatory biomarkers addresses a significant unmet need. Emphasized simplicity of dosing and manufacturing scalability. Noted Orphoglipron is being evaluated across multiple settings including diabetes, sleep apnea, osteoarthritis pain, and weight maintenance therapy.

Dave Ricks emphasized Lilly's philosophy to price to value while noting patient safety concerns with compounding. Indicated expectation of single-digit net pricing erosion on chronic medications while maintaining strong list prices. Noted Lilly will continue direct-to-consumer pricing given coverage gaps. Acknowledged robust 42% total incretins market growth with Lilly growing more than double that rate.

Ilya Yufa noted strong continued performance of Zepbound in both self-pay and covered markets, with 65% share in new therapy starts for semaglutide. Highlighted growth of 1 million vial TRX in Q2 and recent launch of highest doses. Indicated market is showing health with continued demand for Zepbound's value proposition despite competitive noise from compounders.

Dan Skowronski stated the efficacy profile is consistent with what GLP-1 monotherapy can deliver and noted difficulty in cross-trial comparisons given different populations and timing. Indicated this profile is appropriate for real-world clinical use and dismissed investor focus on exact comparative numbers as not translating to clinical practice.

Dave Ricks acknowledged long-term need to rebalance US-Europe pricing but emphasized structural challenges requiring trade tools and gross-to-net deflation. Indicated new product on-ramps could enable gradual harmonization if European reimbursement rates rise and US system changes. Referenced ongoing constructive engagement with administration but noted complexity in sudden changes.