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Lilly shakes up obesity drug market with Zepbound self-pay price now up to 70% lower than the competition

By Brian Buntz | August 27, 2024

GLP-1 therapies just got a whole lot less expensive for patients who pay out of pocket. Eli Lilly’s Zepbound (tirzepatide) single-dose vials are now available at rates similar to compounded versions of semaglutide. Patients can now access a four-week supply of Zepbound for as little as $399 for the 2.5 mg dose and $549 for the 5 mg dose, compared to $1,349 for Wegovy and $935 for Ozempic, both form Novo Nordisk. Wegovy is available in five different dose strengths: 0.25 mg, 0.5 mg, 1 mg, 1.7 mg, and 2.4 mg, each priced similarly. (With insurance and using Novo Nordisk’s savings card, eligible patients may pay as little as $25 for a 1-month, 2-month, or 3-month supply.)

GLP-1 pricing

This pricing strategy puts Zepbound in direct competition with compounded alternatives like those offered by Hims & Hers, which recently announced compounded semaglutide for as little as $199/month for customers who agree to a 12-month commitment. The compounded version of semaglutide, however, is not FDA approved.

Lilly’s stock ticked up 0.42% today to $954.48 while Novo Nordisk was dipped slightly to 0.089% to $135.18 and Hims & Hers Health Inc. fell more than 5% following the announcement. LLY, NOVO, HIMS stock

Eli Lilly’s move to cut the price of Zepbound has received positive reactions from analysts who see it as a savvy move to expand market reach and address growing concerns over compounded medications. BMO Capital analysts praised the move for improving patient access and strengthening Lilly’s manufacturing position. Morgan Stanley, while acknowledging potential short-term pressure on average price estimates, “the incremental volume from vials could prove to be a positive offset,” it said in an article from Yahoo Finance.

 


Filed Under: Metabolic disease/endicrinology
Tagged With: drug pricing, Eli Lilly, GLP-1 Medications, Market competition, obesity treatment, pharmaceutical industry, weight loss drugs
 

About The Author

Brian Buntz

As the pharma and biotech editor at WTWH Media, Brian has almost two decades of experience in B2B media, with a focus on healthcare and technology. While he has long maintained a keen interest in AI, more recently Brian has made making data analysis a central focus, and is exploring tools ranging from NLP and clustering to predictive analytics.

Throughout his 18-year tenure, Brian has covered an array of life science topics, including clinical trials, medical devices, and drug discovery and development. Prior to WTWH, he held the title of content director at Informa, where he focused on topics such as connected devices, cybersecurity, AI and Industry 4.0. A dedicated decade at UBM saw Brian providing in-depth coverage of the medical device sector. Engage with Brian on LinkedIn or drop him an email at bbuntz@wtwhmedia.com.

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