Eli Lilly's Strategic Price Cut for Zepbound Aims to Outpace Rivals

Eli Lilly has reduced the price of its weight-loss drug, Zepbound, to combat competition from compounding pharmacies and Novo Nordisk. The new pricing aims to attract more customers through its direct-to-consumer website by offering vials at $499 per month, which is cheaper than its auto-injector pens.

Eli Lilly has strategically reduced the price of its weight-loss drug, Zepbound, to challenge growing competition from compounding pharmacies and industry rival Novo Nordisk. The pharmaceutical giant announced that it has expanded its range of doses available online, potentially attracting more cash-paying customers who seek affordable options.

The reduced price of $499 for higher-dose vials, offered through Lilly's direct-to-consumer platform, marks nearly a 23% decrease from the cost of auto-injectors for insured yet uncovered patients. Analysts predict this initiative could successfully divert customers from compounded alternatives of the medication.

In response to last August's supply issue, Lilly initially introduced lower doses of Zepbound in vial form, and now cuts prices further to stimulate demand amid sales concerns. The firm also imposes a refill condition to ensure adherence to FDA-approved dosing protocols, while seeking to strengthen its competitive stance against Novo Nordisk's Wegovy.

(With inputs from agencies.)