CVS Restores Coverage for Eli Lilly's Obesity Drug Zepbound

• CVS Caremark dropped Zepbound from coverage on July 1 last year while continuing to reimburse Novo Nordisk's Wegovy after securing more favorable pricing from the Danish drugmaker
• CVS will also remove the new-to-market block on Lilly's oral obesity pill Foundayo effective June 1, allowing earlier coverage where approved by health plans
• High prices of GLP-1 drugs have led many employers and health plans to limit or discontinue coverage for weight-loss use, prompting CVS to negotiate with manufacturers on affordability

CVS Restores Coverage for Eli Lilly's Zepbound Weight-Loss Drug

CVS Health announced Thursday it will reinstate Eli Lilly's obesity medication Zepbound to select drug coverage lists as an additional preferred option, effective October 1. The move follows CVS Caremark's decision to remove the drug from coverage on July 1 last year, after negotiating more favorable pricing with competitor Novo Nordisk for its rival weight-loss drug Wegovy.

Key Details:

• Zepbound will return to CVS Caremark's commercial formularies on October 1
• CVS will also lift the "new-to-market block" on Lilly's recently launched oral obesity pill, Foundayo, effective June 1, where approved by health plans
• The changes aim to provide employers and health plans with broader access to GLP-1 weight-loss treatments at more affordable costs

Market Context:

The decision comes amid growing challenges with GLP-1 drug coverage. The high prices and surging popularity of these medications have prompted some employers and health plans to limit or eliminate coverage for weight-loss applications. CVS previously indicated many clients have been discontinuing coverage of GLP-1 drugs for obesity treatment.

Ed DeVaney, president of CVS Caremark, stated the company engaged in active negotiations with drug manufacturers to address affordability and access concerns for customers and members.

Companies Involved: CVS Health, Eli Lilly, and Novo Nordisk

This development signals potential improved market access for Lilly's obesity franchise, though broader insurance coverage challenges for expensive GLP-1 medications persist across the healthcare industry.