Eli Lilly Captures Majority Share in New Medicare Weight-Loss Patients
Medicare's new coverage for obesity drugs has led to a surge of patients, with Eli Lilly (LLY) capturing the majority share. Since July, when Medicare began covering weight-loss treatments under its Bridge program, over 700,000 seniors have started GLP-1 therapies, and seven out of ten chose Lilly's products like Zepbound or Mounjaro. Lilly is expanding its market dominance with both injectable drugs and a new oral medication called Foundayo. The company plans to build a $6.5 billion factory in Houston by 2030 to meet demand, which could improve profit margins due to lower production costs for pills compared to injections. This shift has come at the expense of Novo Nordisk (NVO), whose market share is being challenged as Lilly gains traction with both new and existing patients. Analysts are watching how this competition unfolds in a rapidly growing sector.
Topics: GLP-1 drugs Medicare pharmaceuticals weight-loss medications