Eli Lilly lowers the cash price of Zepbound weight loss medication to a minimum of $299 per month, with stock price dropping by 1%

Eli Lilly has once again lowered the out-of-pocket price of its bestselling weight loss drug Zepbound.

On Monday, Eli Lilly announced that starting December 1, patients with a valid prescription can purchase Zepbound bottled products on its direct-to-consumer (DTC) LillyDirect platform for a monthly price ranging from $299 to $449, depending on the dosage, down from a previous range of $349 to $499.

Just weeks ago, President Trump signed an agreement with Eli Lilly and Novo Nordisk aimed at making GLP-1 medications more accessible and affordable for Americans.

Eli Lilly's stock fell 1.48% on Monday, but it has risen over 36% year-to-date, and last month the company's market capitalization surpassed $1 trillion, making it the first healthcare company to reach this milestone.

(Eli Lilly's stock fell 1.48% on Monday)

Price Reduction Details and Extent

This price adjustment primarily targets the single-dose bottled Zepbound sold through the LillyDirect platform.

Specifically, the monthly cost for the starting dose has been reduced to $299, the monthly cost for the 5 mg dose has been reduced to $399, and the monthly cost for all other higher doses has been uniformly lowered to $449.

In contrast, Zepbound's list price is approximately $1,086 per month. The high list price and the unstable insurance coverage for weight loss medications in the U.S. have been significant barriers preventing some patients from accessing treatment.

This direct cash price reduction aims to bypass the complex insurance reimbursement system and provide a more affordable option for out-of-pocket patients.

It is worth noting that the single-dose bottled formulation involved in this price reduction requires patients to use a syringe and needle to draw and inject the medication themselves.

Eli Lilly first launched this formulation in August 2024. It is reported that the exact number of patients using this formulation is currently unclear, but Eli Lilly has previously stated that its direct-to-consumer sales account for more than one-third of new prescriptions for Zepbound.

Dual Pressure from Politics and Competition

Eli Lilly's price reduction comes against a significant backdrop of political and market competition.

Wall Street Insight previously mentioned that in early November, Trump reached an agreement with Eli Lilly and Novo Nordisk aimed at making GLP-1 medications more accessible and affordable for Americans.

The agreement includes lowering the price paid by the U.S. government, introducing Medicare coverage for obesity medications for specific patients for the first time, and providing discounted drugs through the new DTC website TrumpRx, which the government is set to launch in January next year.

However, the product that Eli Lilly is preparing to lower the price for in this agreement is a multi-dose injection pen for Zepbound, which is still in the approval process with the U.S. Food and Drug Administration Therefore, the price reduction announced by Eli Lilly on Monday for its existing single-dose bottled products means the company is providing patients with a faster way to access discounted treatments independently of government agreements.

In terms of competition, Eli Lilly's main rival, Novo Nordisk, took action earlier this month to reduce the monthly price of its weight loss drug Wegovy and diabetes medication Ozempic for existing self-paying patients from $499 to $349 (excluding the highest dose of Ozempic).

Additionally, Novo Nordisk launched a temporary promotional campaign allowing new self-paying patients to obtain the two lowest doses of Wegovy and Ozempic for $199 per month during the first two months of treatment.

Market Response and Company Strategy

Despite the company's continuous signals of price reductions, the market reacted cautiously, with Eli Lilly's stock price falling over 1% on Monday.

Wall Street Journal mentioned that this year, thanks to the tremendous success of Zepbound and its diabetes drug Mounjaro, its stock price has risen over 36% cumulatively and became the first healthcare company to surpass a market value of $1 trillion last month.

From a strategic perspective, while price reductions will directly lower revenue per dose sold, the past price cuts have not hindered Eli Lilly's total sales and stock price surge as market demand continues to explode.

By lowering payment thresholds, Eli Lilly aims to attract a broader patient base and consolidate its market leadership. Ilya Yuffa, President of Eli Lilly's U.S. and Global Customer Capabilities, stated in a press release:

We will continue to strive to provide more options, expand the range of delivery devices, and create new access pathways so that more people can obtain the medications they need.

Analysts believe that flexible pricing and a diversified product portfolio have become key strategies for the company to maintain growth in a fiercely competitive environment