CVS Caremark Reverses Course, Restores Coverage for Eli Lilly's Zepbound and Foundayo
CVS sits 58% above its 52-week low of $58.5.
Summary
CVS Health's pharmacy-benefits management unit, Caremark, is restoring coverage for Eli Lilly's popular weight-loss drug Zepbound, effective October 1st. Additionally, CVS will remove its new-to-market block on Eli Lilly's new oral GLP-1 treatment, Foundayo, effective Monday. This decision reverses a previous move where CVS had favored Novo Nordisk's Wegovy, and follows negotiations that CVS states have led to increased affordability and access to GLP-1s. This is a significant positive for Eli Lilly, as a major PBM restoring coverage will boost market access and sales for its key growth drivers. For CVS, it's a strategic move to enhance its PBM offering and improve customer access to in-demand weight-loss drugs.
At the time of this announcement, CVS was trading at $92.60 on NYSE in the Life Sciences sector, with a market capitalization of approximately $117.5B. The 52-week trading range was $58.50 to $98.43. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.