Eli Lilly and Co (NYSE:LLY) has announced a reduction in the price of its weight-loss medication Zepbound for patients who pay for the drug out of pocket.
The company is now offering higher-dose 5mg vials of Zepbound at a discounted rate of $499 per month, a $150 decrease from the previous price of $649 for the auto-injector pen versions.
The cost of 2.5 mg doses has been lowered to $349 per month.
Additionally, the company has also added two new doses, 7.5 mg and 10 mg vials, which are available for $499 with the new Zepbound Self Pay Journey Program.
Eli Lilly’s Zepbound vials will be available exclusively through LillyDirect, Eli Lilly's direct-to-consumer platform.
The decision comes as the US Food and Drug Administration has lifted the shortage status of weight-loss drugs, meaning compounding pharmacies can no longer legally produce alternative versions.
Eli Lilly’s price cut also positions it more competitively against Novo Nordisk, the maker of another leading weight loss drug Wegovy.
Shares of Eli Lilly added 2.3% at $901 following the announcement.