Eli Lilly announced that it will discontinue its partnership with CVS Health’s employee drug‑benefit plan after CVS removed Lilly’s weight‑loss medication Zepbound from its formulary in favor of Novo Nordisk’s Wegovy. The decision, made on November 11, 2025, means that Lilly’s employees will no longer have access to Zepbound through CVS’s plan, a change that could reduce sales volume and market share in the highly competitive GLP‑1 obesity market.
The move follows CVS Caremark’s July 1, 2025 decision to designate Wegovy as the preferred GLP‑1 therapy on its largest commercial formularies and to exclude Zepbound from its standard drug list. CVS cited “more favorable pricing” and cost‑saving opportunities for plan sponsors as the primary reason for the switch. Lilly’s spokesperson noted that the company routinely reviews its benefit service providers and that the transition to Rightway, a privately held pharmacy‑benefit manager, will take effect on January 1, 2026.
Lilly’s Q3 2025 earnings report highlighted a 54% year‑over‑year revenue increase to $17.60 billion, driven largely by its incretin portfolio, which includes Mounjaro and Zepbound. The company’s GLP‑1 market share rose to 57% in Q2 2025, with tirzepatide medications accounting for two‑thirds of all obesity‑drug patients. While the CVS exit could shave a portion of that share, Lilly’s strong pricing power and high‑margin sales suggest that the impact may be limited in the short term.
The loss of CVS as a PBM partner underscores the intense competition between Lilly and Novo Nordisk. Novo’s Wegovy and Ozempic have secured broad coverage across many PBMs, and CVS’s preference for Wegovy reflects a broader industry trend toward cost‑controlled formularies. Lilly’s shift to Rightway is a strategic move to maintain a robust distribution network, but it also signals the company’s willingness to negotiate new terms to protect its market position.
Market analysts view the decision as a tactical adjustment rather than a strategic retreat. The change highlights the importance of PBM relationships for drug manufacturers and the growing pressure on pricing and coverage decisions in the obesity‑drug sector. Lilly’s continued investment in its pipeline, including oral GLP‑1 candidates, positions it to sustain growth even as it navigates shifting PBM alliances.
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