1. CVS prioritizes Wegovy over Zepbound in its formularies starting July 1. 2. This change could impact Eli Lilly's sales and market position. 3. Employers may determine savings sharing from CVS's new formularies. 4. Eli Lilly has stated Zepbound's market share continues to grow. 5. Concerns exist over potential price wars in the weight-loss drug market.
CVS's decision to drop Zepbound from formularies impacts Eli Lilly's market position, likely signaling pricing challenges ahead. Historical examples show PBM formulary changes can lead to significant sales decline for affected drugs.
The CVS change significantly impacts Eli Lilly's sales strategy in a competitive market, presenting potential earnings decline and altering drug availability for consumers.
The immediate effects of CVS's decision will likely be seen in quarterly earnings reports, especially for Eli Lilly, as they navigate sales impacts and employer decisions regarding formularies.