Eli Lilly (NYSE: LLY) received a significant boost after CVS Health announced it will once again cover the company’s weight-loss drug Zepbound for eligible patients.
CVS Health also confirmed it will add Lilly’s newly approved obesity pill, Foundayo, to its preferred drug list, expanding the company’s presence within the pharmacy benefit manager’s formularies.
The move marks a reversal from the prior year, when CVS Caremark dropped Zepbound while continuing to favor Novo Nordisk’s Wegovy after negotiating better pricing terms.
Starting October 1, Zepbound will return to CVS Caremark’s commercial formularies as a preferred option alongside Novo’s existing obesity treatments.
Foundayo is set to be added to the preferred list beginning Monday, giving patients faster access to Lilly’s newest oral obesity treatment.
For patients, the change could make Lilly’s obesity drugs significantly easier and cheaper to access through their existing insurance plans.
CVS said eligible commercially insured patients may be able to obtain the treatments for as little as $25 a month under the updated coverage terms.
The decision carries considerable weight for Lilly given that CVS Caremark manages prescription coverage for roughly 90 million people across the United States.
Wider insurance coverage is expected to drive stronger sales growth for both Zepbound and Foundayo during the second half of the year.
The announcement means all three major U.S. pharmacy benefit managers now cover Lilly’s full obesity medicine portfolio, which analysts consider a major competitive milestone.
The development comes as competition in the weight-loss drug market continues to intensify, with pricing and reimbursement remaining among the biggest factors shaping long-term demand.
Investors have been closely monitoring how insurers and pharmacy benefit managers handle obesity drug coverage decisions, given their outsized influence on prescription volumes and revenue trajectories.
Wall Street will now watch whether broader coverage translates into faster prescription growth and stronger market share gains against rival Novo Nordisk.
