Eli Lilly shares fell as much as 3.8% after CVS Health opted out of a Medicare model for obesity medications. [7, 8] The decision threatens market penetration and revenue projections for Lilly’s weight-loss drug franchise. [7] This move limits medication access for a significant segment of Medicare patients. [7]
The news triggered a broader sell-off, causing competitor Novo Nordisk to see a similar stock price decline. [8] Investors cited concerns over future sales and market access within the lucrative obesity drug sector. [8]
Separately, Eli Lilly announced the strategic acquisition of Kelonia Therapeutics. [1, 5, 10] The deal bolsters Lilly’s oncology pipeline with in-vivo CAR-T cell therapies. [1, 5, 10]