CVS Caremark Adds Zepbound, Foundayo to Formulary

CVS Caremark, the pharmacy benefit manager (PBM) of CVS Health (NYSE: CVS), has added Eli Lilly's (NYSE: LLY) Zepbound and Foundayo to its formulary. This move comes a year after the PBM dropped Zepbound in favor of rival Wegovy from Novo Nordisk (NYSE: NVO).

Details of the Decision

• Zepbound (tirzepatide) and Foundayo (mazdutide) will now be co-preferred options with Wegovy.
• The decision applies to health insurance plans managed by CVS Caremark.
• CVS did not disclose any changes in pricing or rebates.

Competition in the Weight-Loss Drug Market

The weight-loss drug market is fiercely competitive between Lilly and Novo Nordisk. Wegovy (semaglutide) was the sole preferred option on CVS's formulary last year, impacting Zepbound's sales. Now, with Zepbound and Foundayo included, Lilly's market share is expected to grow.

Potential Impact on Companies

• Eli Lilly: Zepbound and Foundayo may see increased prescriptions, boosting revenue.
• CVS Health: The decision could improve its relationship with Lilly and expand patient choices.
• Novo Nordisk: May lose some market share to Lilly.

What This Means for Investors

The decision strengthens Lilly's competitive position in the lucrative weight-loss market and gives CVS more flexibility in cost management. Investors in both stocks may see positive effects, but actual impact depends on coverage scope and rebates.