The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare.
Part 1 — Eli Lilly’s CFO on-stage phrasing about GLP-1 compounding leads to a stir
At the Goldman Sachs 46th Annual Global Healthcare Conference last week, Eli Lilly’s CFO Lucas Montarce said that a condition of the company’s partnerships with telehealth firms is that they don’t compound drugs like tirzepatide, the active ingredient in Lilly’s weight-loss blockbuster drug Zepbound.
“You’ve seen that we announced several agreements with compounders or telehealth services that we’re compounding product as well, including Ro that we signed last December,” said Montarce. “And how we construct our agreements is that we are enforcing in those agreements that as long as the product is out of the shortage list, that those telehealth services are not compounding either tirzepatide or semaglutide, right?”
His comments immediately raised eyebrows because several of Eli Lilly’s telehealth partners, including Ro, still appear to offer these compounded GLP-1 options. Though he correctly described the legal framework of the company’s approach to dealing with compounders, Montarce’s phrasing on stage suggested that Lilly’s partners already weren’t compounding.
When GLP-1 demand outpaced supply last year, the FDA permitted pharmacies to create their own versions of the drugs. This practice, known as compounding, is intended to meet individual patient needs, but some telehealth firms have been accused of exploiting it as a loophole to market and sell cheaper, off-brand versions at scale.
In late April, the FDA officially ended the shortage, but many compounders and telehealth providers have continued rolling out GLP-1 products marketed as custom treatments. Eli Lilly is now suing compounders because it argues they are misleading patients. The company argues that some telehealth patients may believe they’re receiving a personalized treatment (such as a pill instead of an injection) when in reality they’re getting unapproved, compounded versions of Lilly’s brand-name drug.
Montarce’s comments could complicate the company’s legal strategy, as ongoing compounded offerings by its own partners may undercut claims that such practices are unlawful or uniquely harmful, especially if the CFO is unaware of the details of the partnerships. Inconsistent enforcement and internal misalignment can weaken a company’s legal argument. Lilly’s communications team later clarified that its partners are required to “follow the law,” a statement that did little to resolve the confusion around the CFO’s remarks.
A representative from telehealth provider Hims, which is not an Eli Lilly partner but unintentionally implied they may be one in an April communications blunder of their own, told Sherwood News the CFO’s comments were “misleading.” Eli Lilly’s follow-up announcement that it had no plans to partner with Hims, or any company selling compounded versions of Zepbound, contributed to a dip in the company’s stock last week.
The lesson for CFOs: Words matter, especially when telling the company’s story in public. Whether it’s earnings guidance, legal positioning or a live panel, CFOs need to be aligned with legal, communications and product teams before speaking on sensitive issues. A single off-script comment can undermine lawsuits, confuse investors or create unnecessary risk.
Part 2 — This week
Here’s a list of important market events slated for the week ahead.
Monday, June 16
Tuesday, June 17
- U.S. retail sales, May
- Industrial production, May
- Import price index, May
- Capacity utilization, May
- Business inventories, April
Wednesday, June 18
- Initial jobless claims, week ending June 14
- FOMC interest-rate decision
- Fed Chair Jerome Powell’s press conference
Thursday, June 19 — None scheduled, Juneteenth holiday
Friday, June 20
Part 3 — Q2 CFO Duke-Fed survey
This week, CFO.com will publish a recap of the Duke University–Richmond Fed CFO Survey. Both the survey and recap will be published on June 18. This quarterly check-in is arguably one of the best ways to see how finance chiefs are feeling about the economy, inflation and hiring. Early signals point to an approach consisting of a mixture of caution and resilience.
