** Eli Lilly LLY.N on Thursday downplayed CVS Health's CVS.N decision to drop the company's obesity drug Zepbound from some lists of medicines it covers for reimbursement

** CVS said it would drop coverage from July 1, but keep reimbursing for rival GLP-1 weight-loss drug Wegovy after negotiating a more favorable price from Novo Nordisk NOVOb.CO

WEIGHT LOSS MARKET HOLDING UP

** BofA Global Research ("buy," PO: $1000) says the CVS news does not mark a major, new negative trend, instead, it reflects "the reality that no company ever has all payers locked up"

** J.P.Morgan ("overweight," PT: $1100) says the CVS update to potentially only impact a small portion of LLY's Zepbound business

** Brokerage adds, "LLY to continue to see share gains relative to Wegovy in the broader obesity space as well as growth for the obesity market to remain healthy as a whole"

** Morgan Stanley ("overweight," PT: $1133) says in addition to Zepbound, LLY's drug pipeline under development like an oral GLP-1 medication, Orforglipron will strengthen co's position within the future obesity market

** Bernstein ("outperform," PT: $1100) says Novo and Lilly's battle is adding meaningful price pressure across incretin drugs

(Reporting by Kanchana Chakravarty in Bengaluru)

((Kanchana.Chakravarty@thomsonreuters.com))