Biotech Values

[Biowatch]

Lilly raises price of Zepbound while trumpeting discount on starter vials
Cost for insured patients without coverage for the drug rises from $550 to $650 a month.

https://arstechnica.com/science/2024/08/eli-lilly-raises-price-of-zepbound-while-trumpeting-discount-on-starter-vials/

https://www.statnews.com/2024/08/28/eli-lillys-lauded-discount-of-its-obesity-drug-zepbound-comes-with-caveats/

But a deeper look at the announcement suggests the new offering may not expand access as much as the company indicates.

Doctors noted that the price of the vials will still be out of reach for many patients, and only the starter doses will be offered in the vials, not the higher doses that many patients need to achieve significant weight loss. Additionally, not all patients will be able to pick up vials; they will only be available to patients who are paying for their own medication without insurance and who exclusively order through Lilly’s online portal.

On the same day Lilly launched the vials, it also quietly increased costs for other patients. Before, people who have commercial insurance but don’t have coverage for Zepbound could apply for a savings coupon to get the pens, at whichever dose, for $550 a month, but on Tuesday Lilly raised that price to $650 a month — a move that wasn’t mentioned in the press release.

Lilly also appeared to have made a similar change to its savings coupon for Mounjaro, the sister diabetes drug, based on changes made to its webpage.

Experts said that, while the price of the new vials is a good step, Lilly’s actions, taken together, signal its primary interest is in expanding its market share and reaching patients it previously could not. In this case, the company is specifically aiming to draw in patients on Medicare, who have to pay for Zepbound on their own since Medicare doesn’t cover weight loss treatments and doesn’t allow beneficiaries to use drug coupons.