Eli Lilly and Company (NYSE:LLY) shares gained about 1% in premarket trading Thursday after CVS Caremark announced it would add the company’s obesity treatment Zepbound to its preferred drug formulary.
Lilly said the decision means all three of the largest pharmacy benefit managers in the United States will now provide coverage for the company’s full obesity medicine portfolio.
Under the updated coverage plans, CVS Caremark Commercial Template coverage for Foundayo will begin on June 1. Existing Zepbound patients are expected to maintain coverage immediately, with broader access across template plans scheduled to roll out by October 1.
The company said eligible commercially insured patients may be able to access both medications for as little as $25 per month.
Lilly also noted that Medicare Part D beneficiaries could qualify to pay $50 monthly for obesity medications beginning July 1 through the Medicare GLP-1 Bridge program.
Foundayo is currently the only once-daily GLP-1 oral medication approved for weight management that can be taken without restrictions related to meals or water intake. Zepbound remains the most widely prescribed injectable weight-management treatment in the U.S.
“For too long, effective obesity treatment has been out of reach for the people who need it,” said Ilya Yuffa, executive vice president and president of Lilly USA and global customer capabilities.
The decision marks a notable shift for CVS Caremark, which had previously excluded Zepbound from its preferred drug list.
The expanded formulary coverage is expected to significantly increase access to Lilly’s obesity therapies for insured patients across the United States.