Eli Lilly & Co. Slashes Price of Low-Dose Zepbound Vials by 50%
Zepbound's New Pricing
This morning, the GLP-1 complex is in the limelight as Eli Lilly & Co. declared that its novel weight-loss drug, Zepbound, in single-low-dose vials, will be available at a 50% or more discount compared to the retail prices of other GLP-1s for obesity. This news has affected companies involved with GLP-1s, causing their premarket trading values to drop in New York. Wall Street analysts are now questioning whether this drastic discount indicates the bursting of the 'fatty bubble'.
Availability and Accessibility
Eli Lilly & Co. is now offering vials of its successful weight-loss drug Zepbound to patients for as low as $399 a month. "This new option helps millions of adults with obesity access the medicine they need, including those not eligible for the Zepbound savings card program, those without employer coverage, and those who need to self-pay outside of insurance," Lilly stated in a press release.
New Price Details
The new price for a 2.5 mg Zepbound single-dose vial is $399 ($99.75 per vial) for a four-week supply, and a 5 mg dose is $549 ($137.25 per vial). This is a 50% discount compared to the average price of Zepbound injection pens, which are currently priced around $1,000 for a monthly supply.
Cost Implications
Simple calculations reveal that the medication costs patients not covered by insurance over $13,000 per year, a price clearly unaffordable for the vast number of overweight Americans who are grappling with prolonged inflation and high interest rates triggered by the policies of the Biden-Harris administration.
Discount Availability
The discounts are only accessible on Lilly's direct-to-consumer platform, LillyDirect, to patients who pay out of pocket for the drugs. Lilly stated that the cheaper Zepbound vials will offer patients a more affordable option, particularly those without insurance. This direct-to-consumer approach through LillyDirect may be sufficient to stimulate demand.
Political Pressure
Meanwhile, Democrats have been pressuring Lilly and Novo Nordisk, the makers of Ozempic and Wegovy, to reduce the costs of GLP-1s. In June, Sen. Bernie Sanders, I-Vt. criticized the monthly $1,000 payments for Novo Nordisk's GLP-1 drug as "absurd" and announced that he was leading a public campaign to lower costs.
Market Impact
In the markets, Lilly shares remained unchanged in premarket trading in New York, while Novo Nordisk shares fell by approximately 2%. Shares of Hims & Hers Health, a company that offers a range of direct-to-consumer knockoff GLP-1 weight-loss drugs, were down 5% in premarket trading.
Zepbound Availability
Zepbound is also available in 7.5 mg, 10 mg, 12.5 mg, or 15 mg. Like any other drug dealer, the strategy seems to be to hook the client on cheap doses first.
Bottom Line
The drastic price reduction of Zepbound by Eli Lilly & Co. has caused a stir in the market and raised questions about the future of the 'fatty bubble'. The move is seen as a strategy to make the weight-loss drug more accessible to a larger population, especially those without insurance. However, the implications this will have on the market and other companies involved with GLP-1s remain to be seen. What are your thoughts on this development? Share this article with your friends and get their opinions too. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
