Eli Lilly (NYSE:LLY) has decided to end its partnership with CVS Health (NYSE:CVS) as the pharmacy benefits provider for its U.S. employees, following CVS’s decision to drop coverage of Lilly’s weight-loss medication in favor of a rival treatment from Novo Nordisk (NYSE:NVO), Bloomberg News reported Tuesday.
According to documents reviewed by Bloomberg, the change will take effect on January 1, when employees enrolled in Lilly’s medical plan will be automatically switched to coverage managed by Rightway, a different pharmacy benefits manager.
The move follows CVS’s choice to exclude Eli Lilly’s weight-loss drug from its formulary while maintaining coverage for Novo Nordisk’s competing product — a decision that reportedly prompted Lilly to seek an alternative provider for its workforce.