Aug. 27, 2024, 6:45 a.m. ET
With the high demand and limited supply of drugs like Ozempic, a new marketplace has emerged to serve customers who can't access them. Numerous telehealth companies now provide online prescriptions for more affordable, compounded versions of these medications. These alternatives come in vials and syringes for administering doses, costing hundreds of dollars less than brand-name options.
On Tuesday, Eli Lilly announced it would start offering lower-cost vials of its weight-loss drug Zepbound, priced significantly below its pre-filled pens. These vials will be available exclusively through LillyDirect, a telehealth platform launched in January that connects patients with providers who can prescribe obesity medications. Similar to compounded drugs from online startups, Zepbound vials will be delivered directly to patients’ homes.
This new, lower-cost option could improve access for those whose insurance plans don’t cover the medication, according to Lindsay Allen, a health economist at Northwestern Medicine. As the popularity of weight-loss drugs has surged, some insurers have restricted or eliminated coverage to manage rising costs. Estimates suggest that millions of patients have turned to cheaper alternatives from compounding pharmacies, which can create versions of any medication listed as “in shortage” by the FDA, including tirzepatide, the active ingredient in both Zepbound and the diabetes drug Mounjaro.
Lilly’s move also presents a rare challenge to the telehealth companies providing weight-loss drugs, highlighting the competitive threat they pose to Lilly’s market dominance, experts including Dr. Allen noted.
With the high demand and limited supply of drugs like Ozempic, a new marketplace has emerged to serve customers who can't access them. Numerous telehealth companies now provide online prescriptions for more affordable, compounded versions of these medications. These alternatives come in vials and syringes for administering doses, costing hundreds of dollars less than brand-name options.
On Tuesday, Eli Lilly announced it would start offering lower-cost vials of its weight-loss drug Zepbound, priced significantly below its pre-filled pens. These vials will be available exclusively through LillyDirect, a telehealth platform launched in January that connects patients with providers who can prescribe obesity medications. Similar to compounded drugs from online startups, Zepbound vials will be delivered directly to patients’ homes.
This new, lower-cost option could improve access for those whose insurance plans don’t cover the medication, according to Lindsay Allen, a health economist at Northwestern Medicine. As the popularity of weight-loss drugs has surged, some insurers have restricted or eliminated coverage to manage rising costs. Estimates suggest that millions of patients have turned to cheaper alternatives from compounding pharmacies, which can create versions of any medication listed as “in shortage” by the FDA, including tirzepatide, the active ingredient in both Zepbound and the diabetes drug Mounjaro.
Lilly’s move also presents a rare challenge to the telehealth companies providing weight-loss drugs, highlighting the competitive threat they pose to Lilly’s market dominance, experts including Dr. Allen noted.
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