Eli Lilly (LLY.US) reduces the price of its small-bottle weight loss drug Zepbound to combat generic drugs.

The American pharmaceutical giant Lilly is increasing its efforts to crack down on cheap generic versions of Zepbound. The company announced on its official website that it will lower the price of the popular weight loss drug Zepbound in "vial form." According to a statement, the company will reduce the prices of the 2.5mg and 5mg Zepbound vials to $349 and $499 per month, respectively. This is a decrease of about $50 from the current price. Patients without insurance coverage for weight loss drugs (including those covered by federal Medicare) are turning to vial products because they are approximately half the price of the standard injection pen. However, these cheaper options also have their drawbacks as users need to fill and inject the medication themselves. Last year, due to a shortage of weight loss drugs, Lilly began offering Zepbound vials. With the lack of supply, consumers had to turn to cheaper compounded versions sold by remote medical companies like Hims & Hers Health Inc., which provide these drugs through a monthly subscription model. Patrik Jonsson, President of Lilly's Cardiometabolic Health division, stated in an interview, "We are pleased to announce an initiative based on consumer or patient feedback. We can do more, but this is a very important step, providing a cheaper entry point." On Tuesday, Lilly also began selling the highest 10mg dose of the drug for $499 per month, as long as patients refill their prescription within 45 days. Patients typically start with a lower dose of the drug and then gradually increase the dose. Increasing the dose may encourage more people to use it. Crackdown on generics Thousands of Americans are turning to compounded weight loss drugs, which are often cheaper but don't go through the same stringent approval process as branded or generic drugs. Lilly and Novo Nordisk A/S Sponsored ADR Class B have been suing and issuing public warnings, urging patients not to use compounded versions. Both companies have asked the FDA to ban the use of such drugs, citing safety risks of using generic versions. Jonsson stated, "By lowering prices, we hope to provide more patients with the opportunity to access FDA-approved medications." Lilly's Zepbound and diabetes drug Mounjaro were removed from the FDA's shortage list last year, but ongoing lawsuits allow these companies to continue selling generics temporarily. The regulatory agency also announced last week that the shortage of Novo Nordisk A/S Sponsored ADR Class B's Ozempic and Wegovy has ended after several years. Hims announced on Monday evening that it will stop manufacturing some Novo Nordisk A/S Sponsored ADR Class B drugs. Despite expecting revenue to exceed expectations by 2025, the company's stock price dropped 22% before the US market opened on Tuesday. Novo Nordisk A/S Sponsored ADR Class B's stock price rose 5.6% in Copenhagen on Tuesday. Now that the shortage issues with Lilly and Novo Nordisk A/S Sponsored ADR Class B's drugs are over, Jonsson believes there is no reason for any more counterfeit weight loss drugs in the future. Patients with prescriptions can obtain the vials through Lilly's direct-to-consumer platform LillyDirect or remote medical partners such as Ro. Approximately 10% of new Zepbound patients are using self-pay vials, according to Jonsson, most of whom do not have insurance or have plans that do not cover weight loss drugs.