CVS Caremark will add Eli Lilly’s new oral obesity pill, Foundayo, to its formulary. The pharmacy benefit manager (PBM) also restored coverage for the injectable drug Zepbound. This decision means Eli Lilly’s obesity treatments are now covered by all three major U.S. PBMs. The move removes a key market advantage previously held by rival Novo Nordisk.
Expanded insurance coverage is expected to broaden patient access and accelerate sales in the massive weight-loss market. Eli Lilly stock (LLY) surged nearly 6% in early trading following the announcement. The shares reached a new all-time high, reflecting the financial significance of the expanded access for the company's growth franchise.