Alex Hammond

Alex Hammond asked about the importance of the upcoming ATTAIN-MAINTAIN trial to orforglipron's commercial opportunity and if its outcome could significantly alter the view on orforglipron's launch scale.

Answer

Kenneth Custer, President, Lilly Cardiometabolic Health, described ATTAIN-MAINTAIN as a first-of-its-kind study, expressing hope that orforglipron will enable patients to maintain weight loss after switching from injectables. He believes it will further expand the market and provide valuable medical information for physicians.

Alex Hammond inquired about the strategic rationale behind the timing of the orthopedic business separation and whether similar divestitures are anticipated for other divisions. He also asked how the separation might impact Johnson & Johnson's long-term financial guidance.

Answer

Chairman and CEO Joaquin Duato explained that the orthopedic separation aligns with J&J's strategy to prioritize high-growth markets and breakthrough innovation, positioning the standalone DePuy Synthes for greater success. CFO Joe Wolk clarified that this separation is not a precursor for other divisions and that 2026 guidance will likely still include the orthopedics business, with material updates expected mid-next year.

Alex Hammond asked about the rationale and timing for the orthopedic spin-out, whether similar separations could be expected in the future, and how the separation might impact Johnson & Johnson's long-term guidance and potential forecast revisions.

Answer

Chairman and CEO Joaquin Duato explained the orthopedic separation as a strategic move to prioritize breakthrough innovation in high-growth markets, while creating a standalone champion in orthopedics (DePuy Synthes). CFO Joe Wolk clarified that this separation is not a precursor to other divestitures and that 2026 guidance would likely still include the orthopedics business, with material updates expected mid-next year.

Alex Hammond from Sidoti & Company, LLC followed up on the 2026 biofragrance commercial ramp, asking if it stems from expanding with the current client or adding new customers. He also requested a comparison of the potential royalty scale for nonallergenic crops and nitrogen use efficiency relative to rice.

Answer

Interim CEO Peter Beethen confirmed the 2026 ramp is focused on a single customer, with potential for future expansion. Regarding royalties, he explained that while productivity traits are priced on farm-gate savings, quality traits like nonallergenic crops could command a considerably higher premium, though no specific figures were provided.

An analyst on behalf of Alex Hammond asked about the expected dynamics of patient switching following potential competitor launches for VOXZOGO, and how these dynamics might differ by geography and patient age.

Answer

Chief Commercial Officer Cristin Hubbard stated that competition is factored into their models and believes VOXZOGO will have significant 'stickiness.' She cited the trust built from positive patient and physician experiences, a strong safety profile with over 6,000 patient-years of data, and high compliance rates (~95%) as high barriers to switching. She also highlighted BioMarin's entrenched global footprint as a key strategic advantage.