• CVS Health will exclude Zepbound from its standard formulary starting July 1, favoring Wegovy and Saxenda.
• The exclusion could limit patient access to Zepbound and pressure Lilly to reduce prices.
• CVS Health will offer Wegovy at a discounted price of $500 monthly for people without insurance coverage.

CVS Health's pharmacy benefits management business will exclude Eli Lilly's weight-loss drug Zepbound from its standard formulary beginning July 1. This decision favors Novo Nordisk's Wegovy and Saxenda. The move has implications for patient access and could lead to price negotiations between Lilly and pharmacy benefit managers. CVS Health's formulary influences prescription drug coverage for millions of people, as employers and insurers often adopt its standard list.

• What: CVS Health's pharmacy benefits management business will exclude Zepbound from its standard formulary, favoring Wegovy and Saxenda.
• Who: CVS Health, Eli Lilly, Novo Nordisk, patients, employers, and insurers.
• When: The exclusion takes effect July 1. The announcement was made on Thursday. Lilly's first quarter sales were recently completed.
• Where: United States

CVS Health's decision to exclude Zepbound from its standard formulary reflects the increasing pressure on drug manufacturers to lower prices for weight-loss medications. The move highlights the negotiating power of pharmacy benefit managers and the impact they can have on patient access to drugs. Eli Lilly may need to offer price concessions to ensure Zepbound remains accessible to a broad range of patients. The availability of Wegovy at a discounted price for uninsured individuals could improve access to treatment for some patients, but it is not clear how long this will last. The competition between Zepbound and Wegovy will likely intensify as pharmacy benefit managers leverage their negotiating power.

CVS Health's exclusion of Zepbound from its standard formulary marks a significant development in the market for weight-loss drugs. This decision could lead to increased price competition and impact patient access to Zepbound. The long-term effects of this change will depend on how Lilly responds and whether other pharmacy benefit managers follow suit.