LLY · Earnings call · 2026Q3T · Full report

Pricing and Reimbursement Pressure

ELI LILLY & Co · 2026-10-29 · Importance 26 · Surprise 24

Management expects U.S. commercial access to remain relatively stable through 2027, while Medicare and Medicaid are expected to be the main sources of expanded coverage. The increased share of patients in those lower-net-price channels, along with some lower-net-price self-pay business, is expected to affect the channel mix rather than reduce list prices overall. Internationally, Lilly said nine European markets now cover its products for type 2 diabetes and that it will continue seeking reimbursement while taking a disciplined approach to pricing. Management also said it aims for a tighter pricing band on obesity medicines across markets than has historically been typical for other medicine categories.

Key facts

• U.S. revenue increased 34% in Q3, driven primarily by volume growth from Zepbound and Mounjaro and partly offset by a 7% price decline.
• Excluding a favorable adjustment to rebate and discount estimates, U.S. price declined 10% in Q3.
• Lilly expected net realized price to be a headwind in 2027, more than offset by volume growth.
• Lilly expected overall U.S. commercial access to remain relatively stable through 2027, with expanded coverage predominantly coming from Medicare and Medicaid.
• Lilly expected greater Medicare and Medicaid coverage in 2027 to shift segment mix toward lower net prices, rather than reduce overall prices.
• Lilly reported nine European markets with type 2 reimbursement for its incretins in Q3.