Eli Lilly reduces the price of its weight loss drug, Zepboundc

Zepbound vials will cost $50 less, pharma giant Eli Lilly said yesterday, as it hopes to deter consumers from buying cheaper, copycat versions of its blockbuster obesity treatment.

The price cuts make the 2.5-milligram and 5-milligram vials available for $349 and $499 a month, respectively. Higher dosages of up to 10 milligrams are also available for $499, as long as patients refill vials within 45 days.

Why now?
Several uninsured patients have turned to compounded versions of obesity and weight loss drugs as they are cost-effective.

Shortages of semaglutide, a key ingredient in diabetes and obesity drugs, like Novo Nordisk’s Ozempic and Lilly’s Wegovy, allowed the FDA to grant telehealth companies like Hims & Hers to make and sell copycat versions of the medications.

Lilly and rival Nordisk argue these versions lack FDA approval and pose safety risks. Both companies have lobbied for a ban on such copycat drugs.

With shortages now resolved, Lilly believes lower prices will make its drug more accessible. It points out that 10% of Zepbound users, especially uninsured people, opt for vials because it’s cheaper than injector pens.

Meanwhile, Hims & Hers announced it is scaling back some compounded versions of Novo drugs, making the latter’s shares rise nearly 5.6% Tuesday in Copenhagen.