Eli Lilly and Company

Ladies and gentlemen, thank you for standing by and welcome to the Lilly Q3 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 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, everybody. Thanks for joining us for Eli Lilly and Company's Q3 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, Dr. Dan Skowronski, Chief Scientific Officer and President of Lilly Immunology, Lucas Montarse, Chief Financial Officer, Anne White, President of Lilly Neuroscience, Ilya Yufa, President of Lilly International, Jake Van Narden, President of Lilly Oncology, and Patrick Johnson, president of Lilly Cardiometabolic Health and Lilly USA. We're also joined by Susan Hedgeland, Michaela Irons, Mike Sprengnether, and Lauren Zerke of the IR team. During this call, we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to several factors, including those listed on slide four. 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 that our commentary will focus on non-GAAP financial measures. Now I'll turn the call over to Dave.

Okay, thanks, Joe. In Q3, Lilly continued to make progress across the business. We delivered strong revenue growth, we advanced and expanded our pipeline, and we invested in new product launches and continued expanding our manufacturing network. On slide five, you can see details of our financial performance and progress related to our strategic deliverables. Revenue grew 42% after excluding the impact of revenue from the Lansipine portfolio, which we divested in Q3 2023. New product revenue grew by over $3 billion, led by Manjaro and Zepbound. U.S. demand for Manjaro and Zepbound has been strong and continues to grow as we expand both access and supply. U.S. sequential quarter-per-quarter prescription volume growth was 25% in Q3. All doses are available for order from Lilly in both the wholesale channel and Lilly Direct Pharmacy Solutions. The launch of a single-dose Zepound vials in the U.S. exclusively through Lilly Direct's self-pay channel further expanded supply and access in the quarter. And finally, we remain on track to exceed the production targets of at least 1.5 times the saleable doses of Inkerton medicines in the second half of this year compared to the second half of last year. We continue to see strong performance across the balance of our portfolio in oncology, immunology, and neuroscience. Excluding revenue from the Olanzapine portfolio, the non-Inkerton growth of the company was 17% in Q3. We achieved several key pipeline milestones this quarter, including the approval of Evglis in the U.S. for the treatment of moderate to severe atopic dermatitis, the approval of Kisundla in Japan and Great Britain for the treatment of early symptomatic Alzheimer's disease, disclosure of positive 176-week data from the CIRMAP1 Phase III study of triseptide in adults with prediabetes and obesity or overweight, and the recent presentation of positive data from the Phase 3 Trailblazer Alt 6 study, evaluating different dosing regimens for Denonimab. Our manufacturing expansion agenda remains a top priority. In September, we invested nearly $2 billion to increase our manufacturing footprint in Ireland. This brings the total commitments to build, upgrade, and acquire manufacturing facilities announced since 2020 to more than $20 billion. And beyond this $20 billion commitment, we also announced a separate $4.5 billion investment to develop the Lilly Medicine Foundry. This first of its kind facility will be dedicated to research and development for manufacturing process design and to develop high quality investigational medicines for our clinical trials. It will be located in Lebanon, Indiana, a short drive from the corporate headquarters. This investment underscores our confidence in our pipeline and the urgency we bring to bring our medicines, innovative medicines, to patients around the world. In August, we closed the acquisition of Morphic Therapeutics, adding oral intergen assets to our early phase immunology portfolio. And lastly, we returned over $1.6 billion to shareholders via dividends and share repurchases. On slide six, you'll see key events since our Q2 call, including the milestones I mentioned earlier and several other key updates. Last month, we appointed Lucas Montarse as Lilly's Executive Vice President and Chief Financial Officer. Lucas has 23 years of experience at Lilly and has worked with the executive team and the board for a long time. So congratulations, Lucas. Now let me turn the call over to Lucas to review our Q3 financial results and provide an update on our 2024 financial guidance.