Eli Lilly (LLY, Financial) has announced a price reduction for its well-known obesity medication, Zepbound, as part of its strategy to counter the growing competition from cheaper generic alternatives. The monthly price for the 2.5 mg and 5 mg vials of Zepbound will now be $349 and $499, respectively, a reduction of approximately $50.
This price cut is aimed at patients without weight-loss drug insurance coverage, including many on Medicare, who prefer the more affordable vial format, which costs about half of the standard injection pen version. In the past, due to shortages of obesity medications, patients often turned to less expensive compounded generics.
Patrik Jonsson, President of Eli Lilly’s Cardiovascular and Metabolic Health Division, expressed satisfaction with this initiative, highlighting that it is a significant step in providing patients with a more affordable entry option. Besides lowering the prices for lower-dose versions, Eli Lilly is also offering a higher dose 10 mg vial for $499 per month, provided patients renew their prescription within 45 days. This option could encourage patients to continue using Zepbound as they typically start with lower doses and gradually increase.
In response to the shortage of weight-loss drugs, many Americans have resorted to compounded generics, often supplied by telehealth companies like Hims & Hers Health Inc. However, these generics do not undergo the same rigorous approval process as branded or generic drugs. Both Eli Lilly and its competitor Novo Nordisk have been actively pursuing legal actions and issuing public warnings to discourage the use of these compounded generics, citing safety concerns.
