Eli Lilly’s obesity drug now in US pharmacies
Breaking News: Eli Lilly Launches Zepbound, the New Obesity Treatment
December 5, 2023 – 3:36 PM UTC
(Reuters) – Eli Lilly (LLY.N) announced today that its highly anticipated obesity treatment, Zepbound, is now available in U.S. pharmacies. For customers without health insurance coverage, the drug may cost $550 per month, which is half the list price.
Zepbound is the latest entrant to the fast-growing market for weight-loss drugs, which is expected to reach a staggering $100 billion by the end of the decade.
Excitingly, Wall Street analysts predict that Zepbound’s sales will soar to approximately $2 billion in 2024. According to Barclays analyst Emily Field, Novo Nordisk’s powerful obesity drug, Wegovy, is projected to generate an impressive $7.3 billion in sales next year.
Both Zepbound and Wegovy belong to the class of GLP-1 agonists, originally designed to treat type 2 diabetes.
Notably, Zepbound has been added to the U.S. list of preferred medicines by Cigna (CI.N), a major drug benefits company.
Pharmacy benefit managers compile formularies, which are lists of medications covered by insurance and for which pharmacies are reimbursed for patients’ prescriptions.
Lilly has introduced a commercial savings card program, available at various pharmacy chains. Through this program, patients with insurance coverage may pay as little as $25 for Zepbound, while those without insurance may pay $550.
The U.S. Food and Drug Administration granted approval for Zepbound in November, and Lilly promptly announced its launch after Thanksgiving.
Compared to Novo’s popular Wegovy, Zepbound has a list price of $1,059.87 per month, significantly lower than Wegovy’s $1,349 per package.
It is worth noting that Lilly’s obesity drug, Zepbound, shares 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’s shares have skyrocketed by 60% this year in anticipation of the Zepbound launch, propelling the drugmaker to the tenth spot on the list of the world’s most valuable listed companies by market capitalization.
Reporting by Patrick Wingrove in New York and Manas Mishra and Khushi Mandowara in Bengaluru; Editing by Arun Koyyur and Alexander Smith
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What sets Zepbound apart from other weight-loss drugs, such as Wegovy, in terms of projected sales and market potential?
On. The success of Zepbound has been highly anticipated due to the growing demand for effective obesity treatments.
Zepbound, developed by Eli Lilly, is now available in U.S. pharmacies. What sets this drug apart is its relatively affordable price. For customers without health insurance coverage, Zepbound may cost $550 per month, which is significantly lower than the list price. This affordability makes it more accessible to a larger number of people struggling with obesity.
The weight-loss drug market is rapidly expanding and is predicted to reach a staggering $100 billion by the end of the decade. Analysts on Wall Street are optimistic about Zepbound’s potential, with predicted sales of around $2 billion in 2024. Comparatively, Novo Nordisk’s obesity drug, Wegovy, is projected to generate $7.3 billion in sales next year.
Zepbound and Wegovy belong to the class of GLP-1 agonists, initially designed to treat type 2 diabetes. Their effectiveness in helping patients lose weight has made them valuable in the fight against obesity.
Cigna, a major drug benefits company, has recognized the value of Zepbound and added it to its list of preferred medicines. This means that more patients will have access to the drug through their insurance coverage, making it easier for them to afford the treatment.
To further assist patients, Eli Lilly has introduced a commercial savings card program, available at various pharmacy chains. This program allows patients with insurance coverage to pay as little as $25 for Zepbound, while those without insurance may still benefit from the drug at a price of $550.
In November, the U.S. Food and Drug Administration granted approval for Zepbound, and Eli Lilly wasted no time in announcing its launch after Thanksgiving. Compared to Wegovy, Zepbound has a lower list price of $1,059.87 per month, providing a more affordable option for patients seeking weight-loss solutions.
It is important to note that Zepbound shares the same active ingredient, tirzepatide, as Eli Lilly’s previously approved diabetes drug, Mounjaro. Since its launch in 2022, Mounjaro has been used off-label for weight loss, further demonstrating the potential of tirzepatide in combating obesity.
The launch of Zepbound has had a significant impact on Eli Lilly’s stock performance, with their shares skyrocketing by 60% this year. This exceptional growth has propelled the company to the tenth spot on the list of the world’s most valuable listed companies by market capitalization.
The availability of Zepbound offers new hope for individuals struggling with obesity. With its lower price and promising effectiveness, it is expected to make a significant impact on the weight-loss drug market. As more patients gain access to this treatment, the fight against obesity continues to receive a powerful boost.
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