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Eli Lilly & Co. (NYSE:LLY) is reportedly dropping CVS Health Inc.'s (NYSE:CVS) drug benefit plan for its employees. CVS is trading near recent highs. Review the technical setup here. What Went Down Earlier in May this year, Novo Nordisk A/S (NYSE:NVO) announced that CVS Health's CVS Caremark, a Pharmacy Benefit Manager (PBM), decided that Wegovy (semaglutide) injection 2.4 mg would be the preferred GLP-1 medicine on its largest commercial template formularies. The change came into effect on July 1, 2025. Also Read: Eli Lilly's Investigational Obesity Drug Shows Up To 20% Weight Loss In Phase 2 Study, Analyst Sees It As Emerging Cornerstone In Obesity Treatment In March, Novo Nordisk launched NovoCare Pharmacy to provide direct-to-patient, convenient home shipments of all Wegovy dose strengths at a reduced cost of $499 per month for self-paying patients. More recently, the Wegovy savings offer was updated, allowing eligible self-paying patients to get the $499-per-month price at their local pharmacy. Bloomberg, citing a document, noted that starting January 1, 2026, Lilly employees covered by the company's medical plan will be automatically enrolled with Rightway, a privately held pharmacy benefit manager. A Lilly spokesperson told Bloomberg the company routinely reviews benefit service providers to ensure it's delivering high-quality, cost-effective coverage. CVS did not disclose individual client changes but said its overall retention remains in the high 90% range. The company noted it offers plans covering both Lilly's Zepbound and Novo's Wegovy, though those options are more expensive for plan sponsors than its standard plan, which excludes Zepbound. "Our move earlier this year to negotiate Lilly and Novo against one another drove significant savings for our clients," spokesman David Whitrap told Bloomberg. Novo Nordisk In India Novo Nordisk has reduced the prices of its weight-loss drug Wegovy in India by up to 37% from its launch levels, aiming to strengthen its foothold in the country's rapidly expanding obesity treatment market, the company told Reuters. According to a company document seen by Reuters, the new monthly price for Wegovy's highest 2.4 mg dose is ₹16,400 ($186.59), down from ₹24,389, while the lowest 0.25 mg dose now costs ₹10,850, compared with ₹16,261 earlier. The reduction factor in a recent sales tax revision made the drug marginally cheaper. Wegovy, which contains semaglutide, faces patent expiry in March 2026, potentially opening the door for generic competition. Analysts suggest the move may also be a strategic response to rival Eli Lilly's Mounjaro, which became India's top-selling drug by value in October. "This could be a preemptive step to defend market share ahead of generics," said Vishal Manchanda, analyst at Systematix Institutional Equities, adding that Mounjaro is currently "doing better" than Wegovy in India. LLY Price Action: Eli Lilly shares were up 0.75% at $995.99 during premarket trading on Wednesday. The stock is trading near its 52-week high of $999.95, according to Benzinga Pro data. Read Next: FDA Names Veteran Oncologist Richard Pazdur To Lead Drug Center After Ethics Scandal Ousts George Tidmarsh Photo by M7kk via Shutterstock
