Lilly (LLY.US) lowers the entry dose price of Zepbound, intensifying competition in the weight loss drug market and increasing industry pressure.

As competition with rival Novo Nordisk A/S Sponsored ADR Class B (NVO.US) intensifies, Eli Lilly (LLY.US) once again lowered the introductory dose price of its weight loss drug Zepbound. In a statement, Eli Lilly announced that starting from Monday, the monthly cost for cash-paying customers to purchase the lowest dose of Zepbound is $299, about $50 lower than the previous price. The price for the second-highest dose will be reduced to $399 per month, a decrease of about 20% from the previous cash-paying price. Eli Lilly has not adjusted the prices for the higher doses, which will remain at $499 per month. This move marks the latest development in the price war between Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B, significantly reducing the initial cost for patients to start using these popular drugs. Novo Nordisk A/S Sponsored ADR Class B had already lowered its cash-paying prices in November. Currently, on its direct-to-consumer online portal NovoCare, the introductory dose prices for Ozempic and Wegovy are $199 per month for the first two months, then increasing to $349 per month. Eli Lilly's discounts are offered through its direct-to-consumer online platform LillyDirect. Patients typically start with a lower dose and then increase the dosage to achieve better weight loss results. Eli Lilly's President of U.S. operations, Ilia Yufa, stated that this price reduction demonstrates the company's commitment to improving accessibility for the treatment of obesity. This is the second time this year that the company has reduced the price of Zepbound through the LillyDirect platform. He stated in the announcement, "We will continue to strive to provide more choices, expand the types of delivery devices, and create new avenues of access so that more patients can obtain the medication they need." Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B are engaged in positive competition in the lucrative global obesity treatment market, with analysts expecting the market size to reach $100 billion by the end of this decade. Both companies have been seeking competitive advantages, including reaching agreements with entities overseeing drug benefits in the United States, offering discounts to cash-paying customers, and launching new direct-to-employer plans recently. Meanwhile, the long-discussed issue of high prices for weight loss drugs is facing greater pressure from the Trump administration's actions to reduce medication costs for Americans. On Tuesday, the White House announced that it had negotiated discounts of up to 71% for federal Medicare patients for Ozempic and Wegovy. This price reduction measure will take effect in 2027. Additionally, both Novo Nordisk A/S Sponsored ADR Class B and Eli Lilly have agreed in agreements with the government to lower their prices in the United States, applicable to both federal Medicare patients and cash-paying customers. Under the agreements, Eli Lilly will reduce the prices of the Zepbound multi-dose pen. The agreement, promoted by the Trump administration, will take effect in 2026.