Lilly’s New Weight Loss Drug Price Cut: A Boon or a Bump in the Road?

Eli Lilly has announced a significant price reduction for the two lowest doses of its popular weight loss medication, Zepbound, in an effort to enhance accessibility and alleviate supply issues. However, some changes associated with the new pricing might deter certain patients.

According to the updated pricing structure, the lowest dose of 2.5 milligrams will now cost $399 per month, while the 5 milligram dose will be available for $549. This represents a sharp decrease from the previous list price of $1,059 for any dosage.

The discounted doses will be available exclusively through Lilly’s telehealth service, LillyDirect, and will not be covered by insurance, requiring patients to pay in cash. Furthermore, individuals who opt for the lower-cost doses will not be eligible for Lilly’s discount savings program.

The lower prices are possible because the medication will be sold in vials, meaning patients will need to use a syringe to draw the medication, as opposed to the single-dose auto-injector pens, which will remain available but at the higher price.

Some patients using Zepbound have long requested vial options, believing that the complicated manufacturing process for the auto-injectors has contributed to ongoing supply challenges. In the meantime, some have turned to compounded versions of the drug, which typically come in vials and are more affordable.

Patrik Jonsson, president of Lilly USA, stated, “These new vials not only help us meet the high demand for our obesity medicine, but also broaden access for patients seeking a safe and effective treatment option.”

Dr. Maria Daniela Hurtado Andrade, an endocrinologist at the Mayo Clinic, raised concerns about the affordability of the lower-cost options, arguing that $399 per month remains prohibitively expensive for many individuals, particularly among racial and ethnic minorities.

“The majority of patients will not be able to afford the medication, still,” Hurtado Andrade warned, suggesting that the decision to limit the price cuts to only the lower doses could create an unfavorable perception among patients.

Dr. Shauna Levy, an obesity medicine expert and medical director of the Tulane Bariatric Center, considered the price cuts a positive development for the obesity community and expressed anticipation about whether competitor Novo Nordisk would respond with similar price reductions.

Both Eli Lilly and Novo Nordisk, known for their weight loss medications, have faced pressure to reduce prices. In July, President Joe Biden and Senator Bernie Sanders advocated for lower drug prices in an op-ed, criticizing both companies for their pricing strategies.

In a statement following Lilly’s announcement, Sanders expressed his satisfaction with the price cut but criticized the company’s other recent decisions, including the increase in costs for patients on its assistance program and the high price of its diabetes drug, Mounjaro.

Lilly indicated that the new lower-cost vials would be particularly beneficial for patients without insurance, those whose plans do not cover the drug, or those who do not qualify for the company’s savings program, which excludes individuals on government insurance like Medicare and Medicaid.

Doctors can send prescriptions for the vials to LillyDirect, which will ship them directly to patients across all 50 states. The company will also provide instructions on using the vials and offer syringes for purchase.

However, some healthcare providers have experienced supply issues with LillyDirect. Dr. Christopher McGowan, a gastroenterologist in North Carolina, noted difficulties in accessing supplies through the service.

Lilly hopes that transitioning to vial sales will alleviate supply constraints and has chosen to offer only two of the six doses at reduced prices. The 2.5 mg dose serves as a “starter” dose before moving patients to higher maintenance doses.

Concerns have also been raised about the practicality of switching from auto-injectors to vials, particularly for older adults or those with dexterity issues. For example, patient D Scott from Las Vegas expressed reluctance about using a syringe, citing health conditions that might complicate the process.

Overall, while the price reduction is seen as a positive step toward increasing access to Zepbound, its impact on patient affordability and usability remains to be fully evaluated.

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