CVS Caremark has struck a deal that places Eli Lilly on equal competitive ground with Novo Nordisk in the obesity drug market. The agreement includes Lilly's new pill Foundayo and restores coverage for its injectable Zepbound, erasing what had been a commercial edge for the rival Danish drugmaker.
The move reshapes the pharmacy benefit landscape for GLP-1 receptor agonists, the blockbuster class of therapies used for weight loss and diabetes. Lilly now secures formulary access for both its oral and injectable options, directly challenging Novo Nordisk's Wegovy and Ozempic.
Financial terms of the CVS agreement were not disclosed. The deal comes as demand for obesity treatments continues to surge, with analysts projecting the global market could exceed $100 billion by the early 2030s.
Novo Nordisk had previously benefited from broader formulary coverage, giving it a lead in capturing patients and prescriber loyalty. That advantage now appears eliminated, though Novo may respond with its own contracting adjustments.
Some industry observers caution that formulary access alone does not guarantee market share; patient out-of-pocket costs and prescriber habits remain significant factors. The full impact will depend on how aggressively Lilly prices Foundayo and whether supply constraints persist across the class.