Eli Lilly (LLY) Seen Resilient as BofA Downplays Novo Nordisk GLP-1 Price Impact

Eli Lilly and Company (NYSE:LLY) is included among the Goldman Sachs Dividend Stocks: Top 14 Stock Picks.

On February 24, BofA said Novo Nordisk’s decision to cut GLP-1 list prices may draw attention, but the firm does not expect a meaningful impact on the US market. BofA views the move mainly as an effort to lower copay and coinsurance costs for patients, especially in cases where those costs are tied to the list or WAC price. The firm also said investors are right to watch how reimbursement trends evolve. Based on its channel checks, broader commercial insurance coverage for GLP-1 drugs may depend on whether PBM pricing aligns more closely with consumer cash prices.

Even so, BofA believes the overall effect on Eli Lilly and Company (NYSE:LLY)’s GLP-1 business should remain limited. The firm noted there is no clear sign that Novo Nordisk is aggressively lowering net prices in the commercial insurance channel. It also expects Eli Lilly to benefit from growing demand in cash-pay and U.S. government channels, which are not affected by Novo’s latest pricing move. BofA maintained a Buy rating on Eli Lilly.

On February 23, Eli Lilly announced that the U.S. Food and Drug Administration approved a four-dose KwikPen for its weight-loss drug Zepbound. The new device allows patients to receive a full month of treatment in a single pen. This marks a different approach compared to Novo Nordisk’s Wegovy, which has been offered as a single-dose weekly autoinjector in the U.S. since 2021.

Zepbound KwikPen will be available starting at $299 per month for the 2.5 mg dose for cash-paying customers. The device will be offered in all six dose levels: 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, and 15 mg. The KwikPen is already familiar to many patients. Lilly uses the same device to deliver its diabetes drug Mounjaro. It is also available in several major international markets, including the United Kingdom, Australia, the Middle East, and Canada.

Zepbound itself received FDA approval in 2023. In the US, it is currently available as a single-dose autoinjector or in vial form.

Eli Lilly and Company (NYSE:LLY) operates as a global pharmaceutical company. It focuses on discovering, developing, manufacturing, and selling medicines across a wide range of health conditions.

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