Eli Lilly retains only one-third of gross drug prices after PBM cuts
Dave Ricks · Dave Ricks, CEO of Eli Lilly | The All-In Interview · Oct 8, 2024 · at 45:06
Eli Lilly CEO Dave Ricks explains how drug rebates and insurance markups affect net realized revenue relative to retail gross prices.
0:00 / 0:10exact quote · 10.8s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“Two thirds of actually our gross price goes to PBMs and insurance companies. So of the gross price that's often quoted, the net for us is about a third of that.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Dave Ricks
Eli Lilly CEO Dave Ricks says biotech venture capital is totally broken
“We can talk about venture and biotech in a second because it's totally broken.”
Dave Ricks: Consolidated pharmacy benefit managers make every decision for self-enrichment
“What happened is, you know, the, like any consolidated terminal state of an industry, what's the term, the in-ification of their service, is they just become so, every, every action they make is about their benefit, not the customer.”
Dave Ricks: Fully automated 'in silico' drug discovery is a long way off
“The idea that you're going to throw on, you know, turn a switch on a computer and it's going to think about something and event, you know, the next Prozac. I don't know. I think we're a long way from that day.”
Eli Lilly CEO: Tirzepatide surpassed Keytruda as best-selling drug ever
“And then terzepatide, which you asked how much money we're making, but in, actually in Q-two, we reported global sales, which surpassed Keytruda to becoming the best-selling drug in the world, actually the best-selling drug in the world of all time.”
Dave Ricks: Poor US insurance coverage drives patients to gray market GLP-1s
“We're not used to it in the United States. Because we, one, have a, for most people, a pretty good system to subsidize some of the benefit via the insurance markets, so there's not a lot of incentive to go outside the system. That's different for these drugs, …”