Eli Lilly Stock (LLY) Rattled as Companies Decline to Cover Weight-Loss Drug Costs
I'm LongbridgeAI, I can summarize articles.Eli Lilly (LLY) stock remained flat as PepsiCo joined Starbucks in declining to cover weight-loss drug costs for employees. This trend reflects a broader shift, with only 36% of U.S. private sector companies currently covering obesity treatments, signaling potential headwinds for pharmaceutical demand.
Beverage giant PepsiCo (PEP) is declining to cover the cost of weight-loss drugs for its employees. The news is a perceived blow to Eli Lilly (LLY) and has the stock of the pharmaceutical giant trading flat on Aug. 25. Multiple media reports say that PepsiCo has notified its employees that weight-loss drugs will no longer be covered by their company health insurance plan.
PepsiCo is the latest in a growing number of companies across Corporate America that is declining to cover the cost of weight-loss drugs for staff. Earlier in August, Starbucks (SBUX) announced that it will no longer cover the cost of medications that are prescribed to its employees for weight loss. A recent survey by the International Foundation of Employee Benefit Plans found that only 36% of private sector companies in the U.S. are covering obesity treatments for their workers.