CVS Restores Coverage for Eli Lilly's Weight Loss Drug Zepbound
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Source: CNBC
- Coverage Restoration: CVS Health announced it will restore coverage for Eli Lilly's weight loss injection Zepbound on October 1 and will start covering the newly approved obesity pill Foundayo on June 1, providing patients with more treatment options and enhancing Lilly's competitive position in the weight loss drug market.
- Market Competition Balance: This move levels the playing field between Lilly and Novo Nordisk in CVS's major drug plans, especially after CVS's agreement with Novo last year that made Wegovy the preferred obesity treatment, which previously excluded Zepbound and forced patients to incur higher out-of-pocket costs.
- Potential Savings: CVS expects the restoration of coverage to drive an additional 10% to 15% savings across the weight management category, which not only helps patients reduce medication costs but may also stimulate competition in the GLP-1 drug market, facilitating successful pricing negotiations.
- Smooth Transition: CVS Caremark has committed to ensuring a smooth transition for customers, consultants, providers, and members to the newly covered therapies, reflecting CVS's leadership in the market and its proactive efforts to enhance drug affordability.
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Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 92.070
Low
91.00
Averages
96.71
High
105.00
Current: 92.070
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. The Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. The Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. The Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and, through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CVS Health Expands GLP-1 Drug Coverage for Members
- Expanded Drug Coverage: CVS Health announced the reintroduction of Zepbound® (tirzepatide) into its commercial formularies, effective October 1, 2026, thereby providing plan sponsors with more affordable GLP-1 options to meet growing market demand.
- New Therapy Introduction: Effective June 1, 2026, CVS Caremark will lift the market block on the new oral GLP-1 therapy Foundayo™ (orforglipron), further increasing medication options and helping patients access a broader range of treatment solutions.
- Cost Reduction Strategy: CVS Caremark has successfully negotiated with drug manufacturers to lower the prices of GLP-1 medications, making these essential weight management drugs more accessible to a larger patient population, which is expected to drive overall savings in the weight management category.
- Customer Support Initiatives: CVS Caremark will provide advanced communication and support to customers and members to ensure a smooth transition to the new drug coverage, reflecting the company's ongoing commitment to reducing prescription drug costs and improving medication accessibility.
See More
CVS Restores Coverage for Eli Lilly's Weight Loss Drug
- Coverage Restoration: CVS Caremark will restore coverage for Eli Lilly's weight loss injection Zepbound as a preferred option starting October 1, significantly enhancing patient access and treatment options.
- New Drug Launch: Eli Lilly's newly approved obesity pill Foundayo will be available on plans from June 1, 2026, further enriching the company's portfolio in obesity treatment and strengthening its market competitiveness.
- Stock Milestone: Eli Lilly's shares hit an all-time high of $1,147.95 on Thursday, pushing its market capitalization to approximately $1.02 trillion, reflecting strong market demand for its obesity drugs and future growth potential.
- Competitive Landscape Shift: CVS's decision came after Eli Lilly agreed to lower drug prices, which will help Lilly compete more effectively with rival Novo Nordisk in the rapidly growing weight-loss market, enhancing its market share.
See More
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- Formulary Update: CVS Caremark announced it will restore coverage for Eli Lilly's weight-loss drug Zepbound effective October 1, which is expected to enhance patient options and improve its competitive position in the market.
- New Drug Addition: CVS Caremark will also add Eli Lilly's new weight-loss pill Foundayo (orforglipron) effective June 1, further enriching its formulary to meet patient demand for weight-loss medications.
- Market Competition Dynamics: Eli Lilly's stock faced pressure after CVS Caremark selected Novo Nordisk's Wegovy as the preferred GLP-1 drug, and the restoration of Zepbound's coverage is likely to alleviate this pressure and enhance its market performance.
- Improving Drug Accessibility: CVS Health stated that these updates are part of its ongoing efforts to address rising prescription drug costs and improve access to affordable medications for millions of Americans, demonstrating the company's commitment to patient needs.
See More
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- AI-Driven Call Center Experience: The expanded collaboration between Salesforce and CVS Health will streamline call center interactions through the Agentforce Health platform, expected to enhance service efficiency for 185 million users and improve customer satisfaction.
- Real-Time Data Support: The new platform will leverage AI agents to provide real-time insights, enabling CVS Health's member care teams to resolve inquiries faster while ensuring a comprehensive view of members' health profiles during interactions with various business units, thereby enhancing service quality.
- Decade of Collaboration Deepens: The partnership between CVS Health and Salesforce has spanned over a decade, and this expansion marks Salesforce's largest Agentforce deal in regulated industries, further reducing fragmentation in the U.S. healthcare system.
- Employee Efficiency Boost: By utilizing tools like Slack for real-time communication, customer care teams can align better, while Agentforce Health automates routine tasks, allowing CVS Health employees to focus on higher-value work and deliver more personalized service.
See More
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- Expanded Drug Coverage: CVS Health announced the reintroduction of Zepbound® (tirzepatide) into its commercial formularies, effective October 1, 2026, thereby providing plan sponsors with more affordable GLP-1 options to meet growing market demand.
- New Therapy Introduction: Effective June 1, 2026, CVS Caremark will lift the market block on the new oral GLP-1 therapy Foundayo™ (orforglipron), further increasing medication options and helping patients access a broader range of treatment solutions.
- Cost Reduction Strategy: CVS Caremark has successfully negotiated with drug manufacturers to lower the prices of GLP-1 medications, making these essential weight management drugs more accessible to a larger patient population, which is expected to drive overall savings in the weight management category.
- Customer Support Initiatives: CVS Caremark will provide advanced communication and support to customers and members to ensure a smooth transition to the new drug coverage, reflecting the company's ongoing commitment to reducing prescription drug costs and improving medication accessibility.
See More
CVS Restores Coverage for Eli Lilly's Weight Loss Drug
- Coverage Restoration: CVS Caremark will restore coverage for Eli Lilly's weight loss injection Zepbound as a preferred option starting October 1, significantly enhancing patient access and treatment options.
- New Drug Launch: Eli Lilly's newly approved obesity pill Foundayo will be available on plans from June 1, 2026, further enriching the company's portfolio in obesity treatment and strengthening its market competitiveness.
- Stock Milestone: Eli Lilly's shares hit an all-time high of $1,147.95 on Thursday, pushing its market capitalization to approximately $1.02 trillion, reflecting strong market demand for its obesity drugs and future growth potential.
- Competitive Landscape Shift: CVS's decision came after Eli Lilly agreed to lower drug prices, which will help Lilly compete more effectively with rival Novo Nordisk in the rapidly growing weight-loss market, enhancing its market share.
See More
Stocks Edge Up as Snowflake Surges 35% on Strong Earnings
- Market Dynamics: Stocks edged higher on Thursday following a 60-day ceasefire agreement between the U.S. and Iran, which initiated negotiations over Iran's nuclear program, while the personal consumption expenditures price index rose 0.4% month-over-month, slightly below the expected 0.5%, alleviating inflation concerns.
- Snowflake's Strong Performance: Data analytics firm Snowflake saw its shares surge 35% after a robust quarterly report, with CEO Sridhar Ramaswamy successfully pivoting the company towards an AI-focused business model, and a $6 billion commitment to Amazon further bolstered market confidence.
- Starbucks Recovery Signs: Starbucks is witnessing improved afternoon traffic, particularly between 3 p.m. and 5 p.m., which management identifies as crucial for enhancing profitability; Jim Cramer recommends buying Starbucks shares, projecting a target price of $120, indicating a potential upside of about 17%.
- Quick Market Recap: Stocks mentioned in Thursday's rapid-fire segment included CVS, Eli Lilly, and Marvell, with Jim Cramer's charitable trust holding positions in Amazon and Starbucks, providing trade alerts before executing trades.
See More
CVS Restores Coverage for Eli Lilly's Weight Loss Drug
- Formulary Update: CVS Caremark announced it will restore coverage for Eli Lilly's weight-loss drug Zepbound effective October 1, which is expected to enhance patient options and improve its competitive position in the market.
- New Drug Addition: CVS Caremark will also add Eli Lilly's new weight-loss pill Foundayo (orforglipron) effective June 1, further enriching its formulary to meet patient demand for weight-loss medications.
- Market Competition Dynamics: Eli Lilly's stock faced pressure after CVS Caremark selected Novo Nordisk's Wegovy as the preferred GLP-1 drug, and the restoration of Zepbound's coverage is likely to alleviate this pressure and enhance its market performance.
- Improving Drug Accessibility: CVS Health stated that these updates are part of its ongoing efforts to address rising prescription drug costs and improve access to affordable medications for millions of Americans, demonstrating the company's commitment to patient needs.
See More
Salesforce and CVS Health Expand Collaboration to Enhance Call Center Experience
- AI-Driven Call Center Experience: The expanded collaboration between Salesforce and CVS Health will utilize the Agentforce Health platform to provide more personalized call center services for 185 million users, thereby enhancing customer satisfaction and strengthening CVS's competitive position in the healthcare industry.
- Real-Time Data Support: The new platform will support CVS Health's Aetna and CVS Caremark businesses with real-time data, enabling member care colleagues to resolve inquiries faster and meet members' health needs in a single interaction, significantly improving service efficiency.
- Deepening a Decade of Collaboration: This expansion marks Salesforce's largest Agentforce deal in regulated industries, demonstrating CVS Health's ongoing efforts to simplify the member experience and reduce fragmentation in the U.S. healthcare system, further solidifying its market leadership.
- Technology-Enabled Service Enhancement: By leveraging tools like Slack, call center teams can communicate in real-time to ensure the best outcomes for members and providers, allowing CVS Health colleagues to focus on higher-value work and improve the quality of interactions with each member.
See More
Salesforce Expands Collaboration with CVS Health to Enhance Call Center Experience
- AI-Driven Call Center Experience: The expanded collaboration between Salesforce and CVS Health will streamline call center interactions through the Agentforce Health platform, expected to enhance service efficiency for 185 million users and improve customer satisfaction.
- Real-Time Data Support: The new platform will leverage AI agents to provide real-time insights, enabling CVS Health's member care teams to resolve inquiries faster while ensuring a comprehensive view of members' health profiles during interactions with various business units, thereby enhancing service quality.
- Decade of Collaboration Deepens: The partnership between CVS Health and Salesforce has spanned over a decade, and this expansion marks Salesforce's largest Agentforce deal in regulated industries, further reducing fragmentation in the U.S. healthcare system.
- Employee Efficiency Boost: By utilizing tools like Slack for real-time communication, customer care teams can align better, while Agentforce Health automates routine tasks, allowing CVS Health employees to focus on higher-value work and deliver more personalized service.
See More
