Lilly names Lucas Montarce chief financial officer as weight loss drug demand grows

Eli Lilly named Lucas Montarce as its executive vice president and chief financial officer, effective immediately, the Indianapolis-based drugmaker announced Sept. 9, 2024 ^[1]. Montarce, who joined the company in 2001, takes the top finance job while Lilly is spending billions to expand manufacturing for its diabetes and weight loss drugs ^[1][2].

Montarce succeeds Anat Ashkenazi, who left the CFO role to join Google parent Alphabet, CNBC reported ^[2]. Lilly said the appointment followed "a competitive search across health care, tech and general industries" ^[1]. He also becomes a member of the company's Executive Committee ^[1].

His base salary is $1 million, and he is eligible for an annual target bonus of $1 million, according to CNBC ^[2].

Montarce has held a range of finance leadership roles at Lilly since 2001, including group vice president, corporate controller and chief financial officer of Lilly Research Laboratories; vice president, finance and chief financial officer of Lilly International; and vice president, finance and global chief financial officer of Elanco Health ^[1]. Most recently he served as Lilly's president and general manager for the Spain, Portugal and Greece hub, a role he took earlier this year ^[1][2]. He holds a bachelor's degree in business accounting from Catholic University in Argentina and an MBA from the Center for Macroeconomic Studies of Argentina ^[1].

"Developing leadership talent has always been a strength for Lilly, and Lucas has thrived in a wide variety of roles of increasing scope and impact," said chair and CEO David A. Ricks ^[1]. Montarce said he was "honored to step into this role during such a significant time in our company's history" ^[1].

The appointment lands at a critical juncture for Lilly, CNBC reported, as the company invests billions to expand manufacturing capacity and meet soaring demand for Mounjaro and Zepbound ^[2]. Lilly recently raised its annual sales forecast by $3 billion, while Danish rival Novo Nordisk missed expectations in its latest quarter, CNBC reported ^[2]. Analysts project the market for new weight loss drugs could exceed $150 billion by the early 2030s ^[2].

Lilly shares rose 1% to $910 in premarket trading that day ^[2]. CNBC described Lilly as the world's most valuable health care company, largely because of demand for its weight loss treatments ^[2]. Lilly says its medicines help more than 51 million people worldwide ^[1].

Both Mounjaro and Zepbound are listed as available by the U.S. Food and Drug Administration, but they remain on the agency's official shortage list, where they have been for most of the year, according to CNBC ^[2].

Why it matters for patients

Lilly makes Mounjaro and Zepbound, so how the company directs its money — including spending on factories — is connected to how much of these drugs reaches the U.S. market ^[2]. CNBC reported that Lilly and Novo Nordisk have both struggled to meet demand for their obesity medications, and that the executive change comes as Lilly puts billions into expanding capacity ^[2].

Supply is still an active issue. Even with the FDA listing the drugs as available, they stay on the official shortage list, a designation that can affect how pharmacies, patients and compounding pharmacies operate ^[2].

No changes to drug prices, insurance coverage, patient assistance programs or supply were announced along with the CFO appointment ^[1]. Whether the new finance chief will shift spending priorities on manufacturing or pricing has not been disclosed. Montarce's statement focused on building on the company's "strong financial foundation" and expanding its global footprint ^[1].

What happens next

Montarce's appointment was effective immediately on Sept. 9, 2024 ^[1]. Lilly has not disclosed a timeline for when Mounjaro or Zepbound might come off the FDA's shortage list, nor any further executive changes ^[2]. Montarce is expected to work with the executive team on the company's manufacturing expansion and financial planning, though specific targets have not been reported ^[1][2].