U.S. pharmaceutical giant Eli Lilly (LLY) is lowering the cost of its blockbuster weight loss medication Zepbound in an effort to reach more consumers.
The Indianapolis-based company has announced that it is selling higher doses of Zepbound in single-dose vials at as much as half its usual list price, depending on the dosage. Eli Lilly says it is trying to reach more patients, particularly people in the U.S. who don’t have insurance coverage for the obesity drug.
Specifically, Eli Lilly is offering higher doses of Zepbound in single-dose vials on its direct-to-consumer website called “LillyDirect.” The company said it is selling 7.5 milligram and 10 milligram vials of Zepbound for $499 a month when patients fill their first prescription and refill it within 45 days.
That cost is about half the $1,000 that is typically charged for a month supply of Zepbound, said Eli Lilly, which is also dropping the price of its 2.5 milligram vial to $349 per month.
Syringe vs. Autoinjector
Patients paying less money for a single-dose vial of Zepbound must use a syringe and needle to draw the medicine from the vial and inject themselves. That approach to administering the medication differs from more expensive single-dose autoinjector pens that patients can use to give themselves the drug with a click of a button.
Eli Lilly said the vials are easier and cheaper for it to manufacture than the autoinjector pens, which cost roughly $1,000 per month before insurance deductions are applied. The lower price points for single-dose vials rather than the autoinjector pens will benefit patients who pay for Zepbound themselves or are enrolled in Medicare and other insurance plans that do not cover weight loss medications.
People on Zepbound typically start with a smaller 2.5 milligram dose delivered over four weeks before increasing the amount per week and later taking maintenance doses to help them keep the weight off. LLY stock has risen 19% over the past 12 months.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 17 Wall Street analysts. That rating is based on 16 Buy and one Hold recommendations issued in the last three months. The average LLY price target of $1,015.85 implies 12% upside from current levels.
