Eli Lilly ends CVS drug plan partnership over Zepbound exclusion

Eli Lilly (NYSE: LLY) will exit CVS Health’s (NYSE: CVS) pharmacy benefit plan for its employees after the managed care company prioritized Novo Nordisk’s (NYSE: NVO) Wegovy over Lilly’s own weight-loss drug Zepbound, according to Bloomberg News.

Move to Rightway PBM

Lilly employees will be automatically transitioned to Rightway, a privately held PBM, starting Jan. 1.
The switch affects roughly 50,000 employees under Lilly’s medical plan.
A company spokesperson said the move ensures “high-quality, cost-effective coverage” aligned with employee interests.

Background on PBM dispute

CVS’s Caremark unit designated Wegovy as the preferred GLP-1 drug from July 1, excluding Zepbound from standard formularies.
CVS said negotiating between Lilly and Novo Nordisk “drove significant savings” for clients.
Lilly’s CEO Dave Ricks confirmed the change, noting a shift “from a traditional PBM to a new tech, fintech-style PBM.”

Strategic implications

The dispute underscores intensifying competition in the booming GLP-1 weight-loss market.
Lilly’s blockbuster Zepbound and Mounjaro compete directly with Novo’s Wegovy and Ozempic.
The Rightway partnership signals a growing trend of large employers exploring alternative PBM models to control drug costs and maintain access.