Eli Lilly and Company (LLY) and Novo Nordisk (NVO) are on a mission to convince employers that offering coverage to workers for weight-loss drugs such as Zepbound and Wegovy can save them money in the long run, The Wall Street Journal reported Tuesday.
The companies say that complications from obesity are a big cost in terms of healthcare, workers' compensation and disability which can potentially be avoided, according to the report.
Lilly's representatives recently targeted the New Jersey State Policemen's Benevolent Association to lay out data on the effectiveness of Zepbound, as the association has a say in designing health benefits for police and government employees, WSJ said.
Many employers have opted out of paying for the drugs due to high prices of over $1,000 a month and the large eligible patient population, the report said.
Currently, only about half of large employers cover anti-obesity medications, and coverage is even lesser among smaller employers, WSJ said, adding that patients must pay full price without coverage which limits the uptake of these drugs.
Lilly is targeting bigger employers and both companies are targeting coalitions of employers including Voya Financial and Toll Brothers, according to WSJ.
Lilly and Novo Nordisk did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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