Lilly(Eli) & Co

Q2 momentum + raised full-year outlook (strong fundamentals) - Revenue grew 48% YoY in Q2 2026; Key Products rose ~+$6.8B. - Profitability strong: non-GAAP EPS $8.38 (includes acquired IPR&D charges of $3.03). - Full-year 2026 guidance raised: revenue now $85B–$87B (raised + $3B low / + $2B high). - Non-GAAP performance margin raised to 49%–50.5%; non-GAAP EPS forecast $35.50–$36.50 (midpoint increase; guidance also updated for $3.03 impact of Q2 acquired IPR&D). - Good: broad-based growth across geographies and Key Products; margin expansion driven by mix and production cost improvement.

Cardiometabolic (GLP-1/incretin) remains the core growth engine; Foundayo ramp improving - U.S. market: total incretin prescriptions +31% YoY; obesity prescriptions +78% YoY in Q2; Lilly anti-obesity leadership continues. - Mix/access details: ~55% of Zepbound prescriptions are self-pay in Q2; outside U.S. Lilly global share ~55% (up ~2 pts vs Q1 2026). - Foundayo (oral GLP-1) U.S. launch: began broader DTC promotion and benefited from Medicare GLP-1 Bridge (started July 1). - U.S. FDA submission for type 2 diabetes completed; regulatory action expected later in 2026. - Surprising/encouraging: management cited an inflection in late July, with nearly doubling volume vs a month earlier and ~1 out of 4 new starts being Foundayo. - Good: oral therapy addressing a previously unmet convenience/access need; Medicare Bridge appears to be driving early uptake. - Potential challenge (implicit): U.S. launch ramp “slower than anticipated” was asked about; company response points to execution/access/awareness ramp rather than fundamentals breaking.

Medicare GLP-1 Bridge program (major access step; early signals positive, still early days) - Program launched July 1: ~20M eligible Americans gain coverage for obesity GLP-1s at ~$50/month out-of-pocket. - Lilly said this results in ~35% more people having coverage for its obesity medicines in the U.S. - Early read: CMS/physician/pharmacy education underway; company saw an inflection for Zepbound and Foundayo in recent weeks. - Channel mix: still ~80% injectable preference among treated patients; company expects injectables remain dominant but sees new patient growth for both. - Risk: early uptake can be volatile; depends on administrative/PA criteria consistency and continued payer/pharmacy education.