LLY · 10-Q · 2026Q1 · Full report
Inflation Reduction Act Impact
ELI LILLY & Co · 2026-04-30 · Importance 65 · Surprise 60 · In source text
Lilly identifies the Inflation Reduction Act of 2022 (IRA) as requiring HHS to effectively set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D. HHS selections included Jardiance (effective 2026) and, in January 2026, Trulicity and Verzenio (effective 2028); Lilly expects additional significant products may be selected in future years. Lilly states the IRA has and will continue to meaningfully influence its business strategies and those of competitors and could significantly impact Lilly’s consolidated results of operations. The company highlights the multi-year timing rules (generally nine years for NDAs, thirteen years for BLAs) that govern when government-set prices apply.
Key facts
- HHS selected Jardiance as one of the first ten medicines subject to government-set prices effective in 2026; in January 2026 HHS selected Trulicity and Verzenio as additional medicines subject to government-set prices to be effective in 2028. source
- Given our product portfolio, we expect other significant products will be selected for IRA government-set prices in future years. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | committed | — | HHS selected Jardiance as one of the first ten medicines subject to government-set prices effective in 2026; in January 2026 HHS selected… |
| revenue | negative | committed | — | HHS selected Jardiance as one of the first ten medicines subject to government-set prices effective in 2026; in January 2026 HHS selected… |
| revenue | negative | contingent | — | Given our product portfolio, we expect other significant products will be selected for IRA government-set prices in future years. |