Eli Lilly launches a low-cost version of Zepbound to compete against cheap generics

In the context of increasingly fierce competition in the pharmaceutical market, Eli Lilly has launched a counterattack against cheap generic drugs by lowering the price of its well-known obesity drug Zepbound.

According to Eli Lilly's statement, the monthly price of the 2.5 mg and 5 mg vial products of Zepbound will be reduced to $349 and $499, respectively, a decrease of about $50 from the previous price.

For patients without insurance coverage for weight loss medications, including many using Medicare, the vial version of Zepbound is favored due to its price being about half that of the standard injection pen version.

In the past, due to a shortage of obesity medications, patients had to turn to cheaper compounded generics. Patrik Jonsson, president of Eli Lilly's cardiovascular metabolic health division, stated:

"We are pleased to launch this initiative based on feedback from consumers or patients. While we can do more, this is a very important step that provides patients with a cheaper entry option."

Price Adjustment: Eli Lilly's Market Strategy

In addition to lowering the price of the lower-dose version, Eli Lilly has also introduced a higher-dose vial of Zepbound. According to Bloomberg, as long as patients refill their prescriptions within 45 days, the 10 mg vial will also be available at a price of $499 per month. Since patients typically start with lower doses and then gradually increase, offering a larger dose option could encourage more patients to continue using Zepbound.

In the past, due to a shortage of weight loss medications, thousands of Americans turned to cheaper compounded generics. These generics are often provided by telehealth companies like Hims & Hers Health Inc. on a subscription basis. However, unlike brand-name drugs or generics, compounded generics do not require a rigorous approval process.

Eli Lilly and its competitor Novo Nordisk A/S have been trying to prevent patients from using these compounded generics through lawsuits and public warnings. Both companies have requested the U.S. Food and Drug Administration (FDA) to ban these generics, emphasizing the safety risks associated with their use.

Patrik Jonsson stated:

"By lowering prices, we hope to provide more patients with access to FDA-approved medications."

Last year, Eli Lilly's Zepbound and diabetes drug Mounjaro were removed from the FDA's shortage list. Meanwhile, the FDA also announced that the years-long shortage of Novo Nordisk's Ozempic and Wegovy has ended.

Patrik Jonsson believes that with the resolution of the drug shortages faced by Eli Lilly and Novo Nordisk, there is "no reason" to continue using compounded weight loss injections in the future