Eli Lilly announced on Tuesday that its newly approved obesity treatment, Zepbound, is now available at pharmacies in the United States and may cost $550 a month for customers whose health insurance does not cover the medication, or half the listed price.
Healthcare and Pharmaceutical Market
Zepbound is the latest entrant in the rapidly growing weight-loss drug market, which is expected to grow to about $100 billion by the end of the decade.
Health Insurance
Wall Street expects Zepbound sales to reach around $2 billion in 2024, while sales of the competing obesity drug Wegovy from Novo Nordisk are projected to be about $7.5 billion.
Drug and Device Trials
Both drugs are GLP-1 agonists, a class originally designed to treat type 2 diabetes, which have been shown to reduce food cravings and cause slower gastric emptying.
Drug Availability at U.S. Pharmacies
Eli Lilly announced that Zepbound has been added to the preferred drug lists in the U.S. for reimbursement by at least one pharmacy benefit manager, Express Scripts of Cigna, and will be added to Cigna’s commercial lists on December 15.
Drug Evaluation by Health Insurance Companies
CVS Health’s Caremark, another large pharmacy benefit management company, stated that it is still reviewing Zepbound to ensure it is clinically appropriate and cost-effective. United Health’s Optum Rx did not immediately respond to a request for comment.
Pharmacy Benefit Managers
Pharmacy benefit managers (PBMs), which negotiate drug prices for clients including large employers, create lists or formularies of drugs covered by insurance and reimburse pharmacies for patient prescriptions.
Commercial Savings Card Program
Eli Lilly stated that its commercial savings card program is now available at pharmacy chains. Under the program, Zepbound can cost only $25 for patients whose insurance covers the medication and $550 for those whose insurance does not.
Drug Details and Competitor Medications
When the U.S. Food and Drug Administration approved Zepbound in November, Eli Lilly said it would roll out after the Thanksgiving holiday in the United States. Zepbound costs $1,059.87 a month compared to the list price of $1,349 for a single pack of Novo’s Wegovy, which has been highly popular this year.
Active Ingredient and Previous Drugs
Eli Lilly’s obesity drug contains the same active ingredient, tirzepatide, as its previously approved diabetes drug, Mounjaro, which has been used off-label for weight loss since its launch in 2022.
Eli Lilly Stock Surge
Eli Lilly’s stock has risen by 60% this year in anticipation of the launch of Zepbound, making the Indianapolis-based drug manufacturer the tenth-largest publicly traded company by market capitalization and the first among healthcare firms.
Source: Reuters
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