Inside the GLP-1 Gold Rush: Eli Lilly CEO on New Breakthroughs, Addiction & Mental Health, Pricing

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All-In with Chamath, Jason, Sacks & Friedberg 30 min 3 speakers 8 chapters transcribed 1 month ago
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Who is Eli Lilly CEO Dave Ricks and what is his vision for the company?

Chamath Palihapitiya 0:01
GLP-1 drugs have become increasingly popular. Eli Lilly coming to save us here.
Unknown 0:06
Has had its market capitalization increase by about 860% since he became CEO. And the stock price is up a little bit more than 1,000%. No need for needles. Eli Lilly says it has a pill. Eli Lilly's experimental pill appears to work as well as the injected drug. It's everyone's job to move the science. We should always be pushing forward. Ladies and gentlemen, please welcome Eli Lilly's CEO, Dave Ricks.
Dave Ricks 0:52
Hi, David. Good to see you. Good to see you. All right. How are you? Dave. All right. You want to say thank you? What's happening? What's
Jason Calacanis 0:59
happening? Dave. Yes. I don't want to make it awkward. But we were sitting here three years ago on this pod, and Chamath was calling me a fat bastard. He wasn't wrong. I was 213 pounds. I'm a Svelte 172 right now. Awesome. And it's because of what you've done. Thank you. Can I give you a hug? You can, yeah.
Dave Ricks 1:20
Bring it in here.
Jason Calacanis 1:22
I appreciate it. Congratulations. Also, Sax lost 20 pounds, so together we've lost a Friedberg. Good, Sax. Give him a hug. Come on. Nice. Nice. How much money are you guys printing? My lord. What do you do with it? You have real barrels? What do you do with all of
Chamath Palihapitiya 1:39
it? Can I please start?
Jason Calacanis 1:40
Yes,
Chamath Palihapitiya 1:41
go ahead. I got
Jason Calacanis 1:41
four more jokes. I'll get them in the end.
Chamath Palihapitiya 1:43
I mean, you really have built one of the most incredible business in America, but you've done it because you took an enormous bet long time ago. Yeah. Do you want to talk us through the journey and the process you had to go through and what you saw early on and how you made the bet on this class of drug?
Dave Ricks 2:03
Yeah, great, and thanks for having me here. I'm trying to up my cool factor. That's what they tell me in the Midwest I need to do. Did you get a Tomas Ford suit as well? No, I'm actually disappointed
Unknown 2:14
in
Dave Ricks 2:14
the tie. I don't know, that's not... No, you and I are similar. Farmer guy wears ties. Dave,
Jason Calacanis 2:19
Suitsupply does a great job.
Dave Ricks 2:21
Just own it. Okay, there we
Jason Calacanis 2:22
go, just donate.
Dave Ricks 2:23
Okay, so yeah, GLP-1 drugs, we all know about it. It feels like an overnight success, but what happened? You know, drug development is hard and long and requires a fair amount of failure and discipline, a huge amount of capital. So actually in 2006, we launched the first GLP-1 drug. Nobody really knew the name of it. It was a twice-a-day injection for diabetes. But the cover of our annual report in 2007 had a lady on it, and she said, there's a quote, it says, my diabetes is under control and I'm losing a little bit of weight.

How did Eli Lilly discover the weight‑loss impact of GLP‑1 drugs and what were the early challenges?

Dave Ricks 2:54
So that was 18 years ago. I mean, and since that time, we're now, we've been inventing new versions of that, solving various problems with that twice a day. We wanted to make it more convenient, needed to get the dose up, and people tended to lose weight, more weight when you got the dose up. And then Terzepatide, which you asked how much money we're making, but actually in Q2, 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. in Q2 this year. How much did it make in Q2? $8.1 billion in revenue and growing at 80%. And how
Jason Calacanis 3:32
many people are on a GLP-1 globally
Dave Ricks 3:35
now? I'd estimate around 20 million take prescription GLP-1s. Some unknown amount of people take non-prescription. That would
Jason Calacanis 3:44
be compounding?
Dave Ricks 3:45
Compounded or... Synthetic? Yeah, or just not for human use. We can talk about all that. So anyway, 2014 comes along. Four scientists at Lilly decided to combine GLP-1 with another peptide that your stomach produces when you eat that's appetite suppressing. They made the single molecule called Terzepatide. That's what's Manjaro now. But that happened in 2014. 2016, I was named a CEO and I got a call that fall and one of our chief scientists called me and said, hey, we have to stop an early phase study for Terzepatide. That's usually a bad call. So I'm like, oh, like this is the follow-up to our second-gen version of the GLP-1. He said, no, no, it's actually good news. We were running this study in Singapore with healthy male volunteers.
Dave Ricks 4:31
You can imagine what a healthy male Singaporean looks like at baseline, right?

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