After CMS excluded a Biden administration proposal for CMS to cover anti-obesity medications proposal from the final contract year 2026 Medicare Part D rule, Morgan Stanley analyst Terence Flynn notes that it appears that the proposed covered population was only for a portion of the Medicare obesity population based on the 4M estimate of newly eligible Medicare patients from the prior White House Fact Sheet. The firm, which sees limited impact from this news to Eli Lilly (LLY) shares, also notes that that Medicare currently covers GLP-1 drugs such as Lilly’s Zepbound and Novo Nordisk’s (NVO) Wegovy for type 2 diabetic patients or those with obesity and related co-morbidities, but does not cover the drug for patients with obesity without related comorbidities.
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