Eli Lilly and Company

Ladies and gentlemen, thank you for standing by and welcome to the Lilly Q1 2026 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will be conducting a question and answer session and instructions will be given at that time. Should you require 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, Mike Zappar, Senior Vice President of Investor Relations. Please go ahead.

Good morning. Thank you for joining us for Eli Lilly and Company's Q1 2026 earnings call. I'm Mike Sabar, Senior Vice President of Investor Relations. Joining me on today's call are Dave Ricks, Lilly's Chair and CEO. Lucas Montarse, Chief Financial Officer. Dr. Dan Skowromski, Chief Scientific and Product Officer. Adrian Brown, President of Lilly Immunology. Dr. Carol Ho, President of Lilly Neuroscience. Ilya Yufa, President of Lilly USA and Global Customer Capabilities. Jake Van Narden, President of Lillian College, Head of Business Development. Patrick Gonson, President of Lilly International. And Ken Custer, President of Lilly Cardiometabolic Health. We're also joined by the investor relations team, Kim Griffey, Susan Hedgeland, Mark Keeman, and Wes Paul. During this call, we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to various 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 and intended to be promotional or otherwise influencing prescribing decisions. As we transition to our prepared remarks, please note our commentary will focus on non-GAAP financial measures. Now, I'll turn the call over to Dave. Thanks, Mike.

2026 is off to a strong start. During the quarter, we delivered robust revenue growth, advanced our pipeline across all four therapeutic areas, announced multiple business development transactions, and invested to drive our future growth. Earlier this month, we achieved an important milestone as Orforgopron was approved by the US FDA under the trade name Fundayo. Fundayo has been proven highly effective for weight management, offering the benefits of GLP-1 therapy in a pill form. and can be taken at any time of day without food or water restrictions. Foundeo is a new molecule, a new modality for agonizing GLP-1, and it's a new brand. This is the first time a new incretin medicine has been launched with obesity as its indication first. While the Foundeo launch has just begun, we're encouraged by momentum against our 2026 launch priorities. These are broad digital and traditional distribution availability, high levels of awareness with consumers of this new option for weight management, educating a broad group of HCPs, helping them start new patients and get comfortable with the new GLP-1 molecule. And of course, building broad access in commercial, Medicare via the Bridge Program, and later Medicaid access for patients. And while the U.S. approval is an important first step, there are over 1 billion people around the world with obesity and related conditions that can be helped by taking an incartin like Foundeo. Recall that a key advantage of Foundeo is scalability, and that oral GLP-1s for obesity have not yet been introduced outside the U.S. Regulatory reviews are ongoing in over 40 countries for obesity and type 2 diabetes, and we plan to submit Foundeo in the U.S. for type 2 diabetes later this quarter. Included in the U.S. type 2 diabetes submission will be the results from the ACHIEVE-4 trial, which we shared a few weeks ago. In the seventh positive phase 3 registration trial, Foundeo showed cardiovascular safety and a lower risk of all-cause death in adults with type 2 diabetes and obesity without increased cardiovascular risk. In addition to the obesity and diabetes programs, we're actively studying Foundeo in six phase 3 programs in other diseases, and we will continue to generate new data for this important new medicine in the quarters and years to come. On slide five, we list the Q1 financial metrics and the highlights of our progress related to the strategic deliverables of Lilly. Revenue grew 56% compared to Q1 2025. Our key products, currently defined as Evglis, Inlurio, JPRCA, Kisanla, Wanjaro, Omvao, and ZepFound, grew by more than $7 billion. Within key products, our immunology, oncology, and neuroscience medicines collectively grew by 160% compared to the same quarter last year, as we continue to invest to drive growth across all of our therapeutic areas. In addition to the progress on Poundeo, we achieved several key pipeline milestones since our last earnings call, including positive Phase III data for J-PERCA, combination with a time-limited regimen in adults with previously treated CLL, positive phase 3 data for EBLIS in pediatric atopic dermatitis, positive phase 3 data for TULS plus Zephound in adults with psoriasis and obesity, positive phase 3 data for ritatratide in adults with type 2 diabetes, and the initiation of new phase 3 programs for aloralentide and Sofetabart, Mipotecan, and Red Appetite. Consistent with our capital allocation strategy to expand investments in business development, we announced agreements to acquire multiple companies with clinical stage programs. Orna Therapeutics, a company with an in vivo CAR-T pipeline to treat autoimmune diseases. Sintesa Pharmaceuticals, a company developing a new class of medicines for the treatment of excessive daytime sleepiness and other conditions. Polonia Therapeutics, a company developing an in vivo platform to treat multiple myeloma and other cancers. And Ajax Therapeutics, a company developing next-generation JAK inhibitors for people with blood cancers. We expect to remain active in business development to complement our internal portfolio while maintaining the discipline to create shareholder value. We also distributed $1.5 billion in dividends in the first quarter and executed $2.4 billion in share repurchases. Two important updates occurred this quarter to expand access to obesity medications. First, we launched Lilly Employer Connect. This is a platform introduced as a new way for employers to offer obesity management medicines to their employees. While it's still very early for this innovative model, we're encouraged by the level of employer interest. Second, CMS announced the extension of the Medicare GLP-1 Bridge Program, which provides access to OVC medicines to people with Medicare. The program will begin no later than July 1, 2026, and run through December 2027. This program has the potential to help improve the health of millions of seniors while capping their out-of-pocket costs at $50 per month. Now I'll turn the call over to Lucas to review our Q1 financial results.