馃攳
Eli Lilly CEO on drug prices: Patients are paying too much out-of-pocket costs - YouTube
Channel: Fox Business
[0]
our top story this half-an-hour the
[1]
rising cost of health care in America
[3]
meanwhile according to the Centers for
[4]
Medicare and Medicaid Services Americans
[7]
are expected to spend 360 billion
[9]
dollars on prescription drugs this year
[11]
Jenna me right now is the chairman and
[13]
CEO of Eli Lilly Dave Rix and it's good
[15]
to see it's a thanks so much for joining
[17]
us to be here yes when it gets to this
[18]
issue of expensive drug care but first
[21]
you were out with your 2019 forecast
[24]
yesterday you had a capital markets day
[27]
telling the analyst community about
[28]
what's in store for the new year tell us
[31]
about your expectations yeah so we we
[35]
had a good meeting yesterday down on
[36]
Wall Street talking about all the
[39]
launches of new medicines that have
[40]
happened in the last five years ten new
[41]
medicines for patients and what's ahead
[43]
ten more in the next five years this is
[46]
driving our growth and we raised our
[47]
guidance and you know had a good
[50]
discussion about what the possibilities
[52]
in the pharmaceutical industry for
[54]
investing in science and creating
[56]
breakthroughs in areas like breast
[57]
cancer diabetes migraine prevention yeah
[59]
tell us about the pipeline in terms of
[60]
this next ten drugs that you're planning
[63]
in the in the coming years and where the
[65]
growth is right now at Eli Lilly well
[67]
the growth is really happening on our
[68]
newest medicines which have launched in
[70]
the last five years diabetes the most
[72]
important category for us and one of the
[73]
most important diseases afflicting
[75]
Americans it's common and we need better
[77]
medicines for diabetes Lilly's producing
[79]
those a product coat trulicity is really
[82]
the leading brand for us there we also
[84]
recently launched a new medicine for
[85]
pain for migraine prevention so 30
[88]
million Americans mostly women suffer
[91]
from migraines about half of those are
[92]
eligible for a new class of medicines
[94]
launched this year we have one of them
[96]
which you take once a month a shot and
[98]
it prevents migraines from reoccurring
[100]
about half the number of migraines for
[102]
patients who take this and then finally
[103]
breast cancer it's a area we've invested
[106]
in and new medicines coming there one we
[108]
launched last fall
[109]
yeah the immunology growth story
[111]
obviously is is picking up and people
[113]
are recognizing what you've got but in
[115]
terms of the migraines why is it largely
[117]
women yeah so that's a function of the
[120]
disease so women usually during their
[123]
reproductive years that's where the most
[125]
instant is it happens in men as well but
[128]
about 80% of the sufferers are women in
[130]
the middle of their life there
[132]
King age and in our studies even the
[135]
more moderate patients who came into the
[137]
study we're having nine migraine attacks
[139]
a month so can you imagine almost a
[140]
hundred migraines a year Wow
[142]
these new medicines Lily has one of them
[144]
are showed that you could reduce those
[146]
in half and even some women even had no
[150]
migraines in a month so completely
[152]
remiss in the disease it's the kind of
[154]
innovation we're investing in and the
[155]
things our industry can do when we
[157]
invest in science bring new medicines
[158]
forward this is this is a real new set
[161]
of diverse drugs the new drugs are
[163]
showing real diversity and it's really
[165]
and the stock actually moved you also
[167]
announces a 15 percent dividend increase
[169]
correct tell us about the plans for
[171]
allocating capital in the new year yeah
[173]
so our strategy to first invest as I
[175]
said in the science so R&D spending were
[177]
one of the the most significant spenders
[180]
of R&D across all of America almost 25
[182]
percent of what we sell we put back into
[184]
R&D we're also looking to acquire new
[186]
medicines from biotech companies and
[189]
we'd like to invest in that as well and
[191]
then whatever's left at the end we're
[193]
going to give back in dividends and
[195]
share repurchase to our shareholders but
[197]
really our main goal is to build for the
[198]
future and we think now is a great time
[200]
to invest in these new modalities new
[203]
ways to treat serious disease and that's
[205]
what our business is that's all right
[206]
here today you could be investing in
[208]
biotech or you could make an acquisition
[209]
so where does that stand in terms of
[211]
creating more scale perhaps the
[214]
requisition all of the above so we're
[215]
not interested in large-scale
[216]
acquisitions we're interested in
[218]
attracting new medicines into our
[220]
pipeline that can really change the
[222]
standards to care for patients and in
[223]
terms of the FDA today and the process
[226]
the regulatory process to get a drug to
[228]
the market have things change in the
[230]
last five years from your standpoint
[231]
they have we've seen good improvements
[234]
at the FDA more consistent and faster
[236]
and I think that's what Americans want
[238]
they want the new medicines now it's
[240]
also good for our industry to have a
[242]
predictable path through the FDA
[243]
Commissioner Gottlieb's done a good job
[245]
I think in history path they want the
[248]
medicines now but they also want the
[249]
medicines to be affordable according to
[251]
CMS there has been a 4% decline in the
[254]
number of people signing up for the
[255]
Affordable Care Act this year what are
[257]
the implications there and what about
[259]
the price of drugs what's how do you get
[261]
prices lower yeah this is something
[264]
everybody wants to see Park
[265]
including Lily including our industry
[267]
yeah what the debate is about is how to
[270]
do this it's an interesting situation
[272]
ray because you have drug price
[273]
inflation just reported last year in the
[275]
u.s. 0.4 percent so we don't have a drug
[279]
price increased problem to the system we
[282]
have a drug price increase problem to
[283]
the patient why because they're paying
[285]
list prices and increasingly insurance
[288]
design has patients paying full price
[290]
for their medicines rather than the
[292]
negotiated price drug companies have
[294]
with their insurance company that's
[295]
really a core issue that needs to change
[297]
well I mean the competitive landscape I
[300]
mean is is such that when you have a
[303]
drug on the market that's cheaper I mean
[305]
look to of your competitors
[306]
GlaxoSmithKline and Pfizer announced
[308]
this week they're merging their consumer
[310]
healthcare divisions is that a way to
[312]
get prices in in a better state where
[315]
you actually see companies coming
[317]
together maybe that's a combination for
[319]
over-the-counter medications the kind
[321]
you would just buy off the shelf at
[323]
Walgreens or CVS really our business is
[325]
prescription medications where you go to
[327]
your doctor you need a prescription I
[328]
mean when you if you need a prescription
[329]
and you're sick you need a prescription
[331]
for a cancer medication you're talking
[334]
about a hundred and fifty thousand
[335]
dollars a year in some cases those are
[338]
that those are the costs now that's
[340]
because R&D is expensive there's very
[341]
few patients with some of these
[342]
conditions and the way the economics
[345]
work is those cancer medications are
[347]
paying for the R&D for the next cancer
[349]
medications as I said the real issue is
[351]
out-of-pocket costs for patients and I
[354]
want to just be clear we're for change
[356]
in that in that model patients are
[358]
paying too much out-of-pocket cost so
[360]
the administration's proposed a number
[362]
of ways to get at this including
[364]
narrowing the spread between that list
[367]
price and the net pricing and we think
[370]
some of those are good ideas whether it
[372]
be passing through rebates that your
[374]
insurance company negotiates on your
[376]
behalf today they negotiate the rebates
[378]
but mostly don't share them with
[380]
patients this is something we do at our
[382]
insurance design that Lily for our
[383]
employees yeah we think more companies
[385]
should do that or in federal programs
[387]
like the Part D program which is
[389]
prescriptions in Medicare for seniors
[391]
passing through more of the savings
[393]
directly to the patient
[395]
are you expecting in terms of the new
[396]
drugs that we're looking forward to in
[398]
the pipeline
[399]
you were expecting regulatory approval
[400]
on the nasal drug the the nasal glucagon
[405]
yeah this is an important drug if you
[406]
have diabetes one of the biggest fears
[408]
for patients is you're gonna have what
[409]
they call hypoglycemia low blood sugar
[411]
where you get dizzy or even pass out
[413]
it's dangerous and taking the the rescue
[417]
medication for that today is an
[418]
injection many steps it's complicated
[421]
sometimes if if you had type 1 diabetes
[424]
your child or your your loved one would
[426]
have to give that to you that's scary
[427]
this is just a puff to the nose it's
[429]
under review at the FDA so we can't say
[431]
too much about that but that could be a
[433]
great new convenient way to have people
[435]
rescue themselves from a hypo I see how
[437]
many reviews how many approvals would
[440]
you expect in the next three years we
[443]
are expecting as many as six in the next
[445]
three years yeah so again about two a
[446]
year that's the cadence Ron again great
[449]
time to invest in innovation the key
[451]
thing is we need to get these prices
[453]
down for consumers reduce their
[455]
out-of-pocket costs
[456]
we're supportive of a lot of the
[457]
policies out there and we're anxious to
[458]
engage with policy makers didn't really
[460]
get to pass that problem great great
[462]
outlook thanks so much
[463]
but you see Dave favorites turning us is
[465]
the CEO at Eli Lilly
Most Recent Videos:
You can go back to the homepage right here: Homepage