Eli Lilly is making waves in the pharmaceutical industry with the launch of single-dose vials for its weight loss drug, Zepbound. This strategic move is designed to tackle ongoing supply issues and enhance the drug’s availability in the US market, a critical step as the demand for weight loss medications continues to rise.
Since the introduction of weight loss drugs in the US last year, the market has seen a proliferation of cheaper copycat medications.
These alternatives are particularly appealing to consumers who either cannot afford the high cost of brand-name drugs or lack insurance coverage for them.
In response, Eli Lilly is taking proactive steps to make Zepbound more accessible, aiming to retain its market share and cater to a broader patient base.
Patrik Jonsson, president of Lilly’s cardiometabolic health division, expressed confidence that the smaller, single-dose vials would significantly improve the drug’s supply chain. He emphasized that a significant portion of patients never progress beyond a 5mg dose of Zepbound, and the new vials are designed to meet this specific need.
We are very confident with both the auto-injectors and the vials that we will be able to supply the needs in the US marketplace
Patrik Jonsson.
Pricing strategy to boost revenue
Eli Lilly has priced the new 2.5mg and 5mg vials at $399 and $549, respectively, which is a substantial reduction from the drug’s original price of around $1,000 before insurance and rebates.
This pricing strategy is expected to attract a wider audience, particularly those without adequate insurance coverage.
Although approximately 86% of commercial healthcare plans cover weight loss drugs, government programs like Medicare do not, leaving many patients unable to afford the $1,000 monthly cost.
By offering these more affordable options, Eli Lilly aims to capture a segment of the market that has previously been out of reach.
The introduction of these vials also simplifies the manufacturing process.
Unlike auto-injector pens, which require more complex production, the vials can be produced more efficiently, helping to ease the supply constraints that have plagued both Eli Lilly and its main rival, Novo Nordisk.
These companies have struggled to keep up with the growing demand for their weight loss drugs, both of which are currently listed on the FDA’s shortage list.
LillyDirect sees a boost
The new vials are available through Lilly’s online platform, LillyDirect, which was launched in January.
This platform connects patients with telehealth professionals who can prescribe medications based on eligibility, and it also facilitates home delivery of the drug.
The availability of Zepbound on LillyDirect not only promotes the platform but also encourages a potential surge in its usage.
Patients can order the medication along with necessary accessories like syringes and needles and access user manuals to ensure proper administration.
By introducing these vials, Eli Lilly is addressing multiple challenges, including competition from counterfeit and cheaper versions of the drug, and the lack of affordability for many patients.
This move is poised to positively impact the company’s revenue in the coming quarters, as it not only meets the growing demand but also strengthens its position in the highly competitive weight loss drug market.
The post Weight-loss drug Zepbound: Eli Lilly offers 50% discount on 2.5 mg and 5 mg vials to meet demand appeared first on Invezz
