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As Lilly’s Realized Sales Prices Drop, Ricks Reiterates Criticism Of US Drug Price Plan

 
• By Joseph Haas

With Lilly’s sales narrative hampered by global price pressures, Lilly CEO David Ricks again criticized drug price negotiation proposals before Congress. Mounjaro launch offers a bright spot, exceeding projections.

Lilly's-Biotechnology-Center-San-Diego
At Lilly, sales volume is up but revenue is down

Eli Lilly and Company is bullish on the launch metrics for its GIP/GLP-1 agonist Mounjaro (tirzepatide) in type 2 diabetes, which is the first of five new products it hopes to launch before the end of 2023, including the Alzheimer’s disease candidate donanemab. But while impressed by Mounjaro’s quick start, analysts had trouble getting past Lilly’s quarterly sales decline of 4%, which the pharma attributed mainly to pricing pressures in the US and elsewhere, along with the impact of foreign exchange.

CEO David Ricks also stepped up again on the soapbox during Lilly’s Q2 earnings call on 4 August to criticize the drug pricing legislation currently being discussed in Congress. Echoing comments of AbbVie Inc. CEO Rick Gonzalez and others, Ricks said he favors provisions that would directly limit patients’ out-of-pocket costs but has concerns about a proposal to allow Medicare to negotiate prices for the Part D prescription drug benefit

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