Eli Lilly's (LLY) Zepbound is expected to continue uptake despite CVS Health's (CVS) decision to drop coverage of the weight loss drug from some of its health plans as patients will likely find a way to stay on Zepbound due to its safety and efficacy merits, Truist said in a research note emailed Friday.
The investment firm said there is a "reasonable likelihood" that patients who lose access to Zepbound by July 1 will request medical exemption or coverage exemption to regain access to the drug.
"We believe affected patients rely on the superior safety/efficacy profile and adherence to Zepbound," Truist said in the note. "In an equal access market, we've seen patients prefer and stay on Zepbound."
Eli Lilly maintained its 2025 revenue guidance at a range of $58 billion to $61 billion despite the CVS decision, Truist said. Mounjaro and Zepbound accounted for nearly 50% of Eli Lilly's Q1 revenue, which was up 45% year on year, the firm added.
Truist kept Eli Lilly's buy rating and $1,038 price target.
Shares of Eli Lilly were up 2.5% in recent trading Friday.
Price: 814.17, Change: +20.07, Percent Change: +2.53
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