CVS health shifts to Wegovy, leaving Eli Lilly's Zepbound behind

In the United States, CVS Health's pharmacy benefit manager, Caremark, announced plans to favor Novo Nordisk's weight loss drug, Wegovy, starting July 1. This decision, which emerged in early May 2025, will have far-reaching implications for the obesity drug market. Wegovy will become the preferred choice among multiple formularies that affect tens of millions of patients, directly undermining Eli Lilly's ability to sell its competing drug, Zepbound, which will be removed from those formularies. CVS has successfully negotiated a lower net price for Wegovy, providing clients with potential savings, although it remains uncertain how these savings will be distributed among members. This decision has sparked fears among investors regarding a potential price war in the obesity drug market, leading to significant selloffs of Eli Lilly's stock. Wall Street analysts, however, have voiced opinions suggesting that these concerns may be exaggerated. Some analysts believe that both companies are focused on increasing patient access rather than engaging in aggressive pricing strategies. Eli Lilly's CEO David Ricks stated that the company seeks to avoid high list prices and substantial rebates for preferential coverage, emphasizing a more patient-centered pricing approach. Additionally, Ricks pointed out that the CVS decision mainly impacts smaller employers that adhere to Caremark's standard formularies, while larger companies have more flexibility in customizing their formularies and may continue to include Zepbound despite CVS's change. In the midst of this transition, Zocdoc revealed the launch of an AI-powered scheduling assistant, Zo, indicating a trend toward integrating technology in healthcare interactions and improving operational efficiencies amid evolving market dynamics.