Eli Lilly and Company

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Ladies and gentlemen, thank you for standing by and welcome to the Lilly Q1 2024 earnings call. At this time, all participants are on a listen-only mode. Later, we will be conducting a question and answer session and instructions will be given at that time. Should you request... Operator assistance during the call, please press star, then zero, and an operator will assist you offline. I would now like to turn the conference over to your host, Joe Fletcher, Senior Vice President of Investor Relations. Please go ahead.

Thank you, Paul, and good morning, everyone. Thank you for joining us for Eli Lalini 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, Anad Ashkenazi, chief financial officer, Dr. Dan Skobronski, chief scientific officer and president of Lilly Immunology, Anne White, president of Lilly Neuroscience, Ilya Yufa, president of Lilly International, Jake Van Narden, president of Loxo at Lilly, and Patrick Johnson, president of Lilly Diabetes and Obesity and Lilly USA. We're also joined by Michaela Irons, Mike Spragneather, and Lauren Zerke 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 two. 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. 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 four, 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 two results for terzapatide in moderate to severe obstructive sleep apnea, the approval of our multi-dose quick pen delivery device for Monjaro in Europe, submission of mirakizumab in the U.S. and in the EU for moderately to severely active Crohn's disease, the resubmission of leperkizumab in the U.S. for moderate to severe atopic dermatitis, and the initiation of our phase three study for lepidicerone, 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. The recent EMA approval and upcoming launch of our multi-dose quick pen delivery device for Manjaro will unlock new supply capacity for Europe and other international markets. while we are also seeing meaningful progress in the ramp of new lines in existing Lilly and CDMO sites for the United States. We continue to make progress against our plans to increase manufacturing capacity, the most ambitious expansion plan in our company's history. Lastly, we distributed over $1 billion in dividends during the first quarter. On slide five, you'll see a list of the key events since our Q4 earnings call, including the milestones I mentioned earlier, and several other important updates. So now let me turn the call over to Anat to review our Q1 financial results.