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INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY) announced today the availability of Zepbound® (tirzepatide) single-dose vials, offering a more affordable self-pay option for individuals with obesity. The pharmaceutical giant has set the price for these vials at least 50% lower than the list price of other incretin-based obesity medications. This move aims to enhance the accessibility of Zepbound to patients, including those who are not covered by insurance or who are ineligible for the Zepbound savings card program.
The 2.5 mg and 5 mg single-dose vials of Zepbound are now available for patients with an on-label prescription, catering to the high demand for the obesity treatment. According to Eli Lilly, a four-week supply of the 2.5 mg dose is priced at $399, while the 5 mg dose is available for $549, both significantly less expensive than other incretin medications for obesity on the market.
Patrik Jonsson, executive vice president and president of Lilly Cardiometabolic Health and Lilly USA, highlighted that the introduction of these new vials not only addresses the supply issue but also broadens patient access to an effective treatment option. In clinical studies, a 5 mg maintenance dose of tirzepatide demonstrated an average weight loss of 15% over 72 weeks.
LillyDirect's self-pay channel will distribute the vials, ensuring that patients receive authentic Lilly medications and safeguarding them from counterfeit products. The company has also implemented a multi-step verification process to ensure that the drug is dispensed only to patients with a valid, on-label prescription.
The Obesity Action Coalition has praised Lilly for its initiative to improve the affordability and coverage of obesity treatments. The organization's COO, James Zervos, emphasized the importance of expanding access to essential care for people living with obesity.
Zepbound, which activates both GIP and GLP-1 hormone receptors, is designed to help adults with obesity or overweight with weight-related medical issues to lose weight and maintain it. The medication is also available in varying doses in a single-dose pen format. This announcement is based on a press release statement from Eli Lilly and Company.
In other recent news, Eli Lilly and Company has experienced a series of developments. The pharmaceutical company's new Alzheimer's drug, donanemab, is likely to face rejection by the United Kingdom's National Health Service (NHS). The National Institute for Health and Care Excellence (NICE) isn't expected to approve the treatment, despite its recognition as an effective Alzheimer's treatment in the United States.
On a more positive note, Eli Lilly's tirzepatide has shown significant weight loss results in a phase 3 study, demonstrating a considerable reduction in the risk of progression to type 2 diabetes and sustained weight loss in participants.
In addition, Eli Lilly has completed its acquisition of Morphic Holding (NASDAQ:MORF), Inc. This acquisition has enhanced its immunology treatments portfolio by adding MORF-057, a therapy targeting inflammatory bowel disease.
In governance news, Marschall S. Runge, M.D., Ph.D., a director at Eli Lilly, is set to retire from the company's board of directors in 2024.
Finally, the Biden administration has chosen 10 prescription medicines, including Jardiance by Eli Lilly, for price negotiations with the Medicare health program. This initiative is projected to save the U.S. government $6 billion in the first year from newly negotiated lower prices.
InvestingPro Insights
Eli Lilly and Company (NYSE:LLY) has taken significant strides to enhance patient access to its obesity treatment, Zepbound®, with a strategic pricing decision that undercuts the competition. This move could potentially bolster the company's market position and financial performance, which is already notable in several ways.
InvestingPro Data indicates a robust revenue growth of 31.87% over the last twelve months as of Q2 2024 for Eli Lilly, signaling a strong market demand for its products. The company's gross profit margin is equally impressive at 80.75%, reflecting efficient operations and a commanding presence in the pharmaceuticals industry. Additionally, Eli Lilly's commitment to shareholder returns is evident, with a dividend growth of 15.04% during the same period, showcasing its financial stability and confidence in future performance.
InvestingPro Tips highlight Eli Lilly's consistency in raising its dividend, with a track record of 9 consecutive years of increases, and a remarkable history of maintaining dividend payments for 54 consecutive years. These factors, coupled with the expectation that net income is projected to grow this year, suggest a positive outlook for the company's financial health.
For readers looking to delve deeper into the company's financial metrics and analyst predictions, InvestingPro offers a comprehensive list of additional tips. As of now, there are 20 more InvestingPro Tips available on https://www.investing.com/pro/LLY, providing valuable insights for potential investors and industry observers alike.
Eli Lilly's strategic pricing for Zepbound® is not only a win for patients seeking affordable obesity treatment options but also reflects a business acumen that aligns with the company's strong financial metrics and positive analyst revisions. As the company continues to navigate the competitive pharmaceutical landscape, these factors may contribute to sustained growth and investor confidence in the foreseeable future.
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