Eli Lilly and Company (LLY) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Oncology pipeline strategy and innovation

• Undertook a major pipeline overhaul, terminating most legacy programs to rebuild with higher biological conviction and modern modalities.

• Expanded technology toolkit to include antibody drug conjugates, T cell engagers, and a radioligand platform, moving beyond small molecules and naked antibodies.

• Plans to advance 5–8 new oncology medicines into the clinic in 2024, with continued productivity expected in 2025.

• Current clinical portfolio includes ADCs (Nectin-4, folate receptor), radioligands, and a suite of KRAS inhibitors (G12C, G12D, pan-KRAS).

• Maintains a broad approach to target selection, avoiding artificial restrictions by tumor type or modality.

Adaptation to IRA and regulatory environment

• Shifted pipeline focus toward biologics and away from small molecules, partly in response to IRA incentives.

• Accelerated clinical development timelines to maximize value before IRA negotiation windows, launching multiple studies in parallel.

• Aims to mitigate risk of late-stage launches losing exclusivity time due to IRA clock, leveraging financial strength to support aggressive development.

• No current momentum in D.C. to change the small molecule/biologic exclusivity gap.

Product performance and competitive landscape

• Verzenio has achieved approximately 70% penetration in high-risk adjuvant breast cancer, with potential to reach 80%.

• New competition, such as Kisqali, could expand the overall market, though Verzenio is expected to remain standard of care for its indicated population.

• In first-line metastatic breast cancer, Verzenio maintains a stable 30% share, while Kisqali gains and Ibrance declines.