James Chin

James Chin asked about the implications of Cigna's recent announcement to replace drug rebates with GPO fees, questioning if this suggests greater gross-to-net pressure, if clinical profiles will become more relevant for formulary positioning, and what changes to expect.

Answer

Dave Ricks, Chair and CEO, applauded Cigna's move, viewing it as beneficial for innovators, patients, and commercial payers by increasing transparency and lowering out-of-pocket costs. He hopes this shifts competition towards clinical differentiation rather than non-transparent rebates, which he believes benefits innovators like Lilly, and does not necessarily foresee a direct pricing effect.

James Chin asked about the impact of Cigna's recent announcement to replace drug rebates with GPO fees on Eli Lilly's net pricing, potential GTN pressure, and the increased relevance of clinical profiles for formulary positioning.

Answer

Dave Ricks, Chair and CEO, praised Cigna's move for promoting transparency and lower patient out-of-pocket costs, aligning with Eli Lilly's interest in clinical differentiation. He expressed hope that this model would lead to value recognition for more effective medicines without necessarily implying greater GTN pressure.