Eli Lilly (LLY) continues to lower prices for its popular weight-loss drug Zepbound.
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However, the cost still remains high for people without prescription drug insurance, say analysts. Currently, a month’s supply of Zepbound costs around $500, less than half of what it cost a year ago. However, despite coming down in price, access remains elusive for many people.
Demand for Zepbound remains red hot as Eli Lilly ramps up production of the obesity medication that is a GLP-1 receptor agonist. Sales of Zepbound totaled $2.3 billion during this year’s first quarter, making it a global bestseller for Eli Lilly. Sales of Zepbound outpaced rival Novo Nordisk’s (NVO) Wegovy weight-loss drug, which had Q1 revenue of $1.9 billion.
Insurance Coverage
Analysts who cover LLY stock and the pharmaceutical industry say another issue impacting the cost of Zepbound is inconsistent insurance coverage. While benefits consultant Mercer says more businesses with 500 or more employees are adding coverage of the injected medication for their workers and families, many insurers continue to view weight-loss medications as an optional treatment.
People who have insurance coverage in the U.S. pay as little as $25 per month for Zepbound. However, most state and federally funded Medicaid programs still don’t cover drugs used to treat obesity and neither does Medicare, the federal program for seniors aged 65 and older. Even the plans that cover the drug often pay only a portion of the expense, costing patients hundreds of dollars each month.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy recommendation among 19 Wall Street analysts. That rating is based on 16 Buy, two Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $999.57 implies 28.04% upside from current levels.
