Eli Lilly CEO Says Medicare Coverage Of Obesity Drugs Could Be Game-Changer For Its Weight-Loss Pill

Medicare's upcoming coverage of obesity treatments could dramatically expand access to Eli Lilly's (NYSE:LLY) experimental weight-loss pill, orforglipron, CEO Dave Ricks said Friday.

Medicare Coverage To Unlock Millions Of Patients

In an interview with CNBC, Ricks said that the new policy will allow Medicare beneficiaries to access obesity drugs "immediately following launch" of the company's highly anticipated experimental weight-loss drug, Orforglipron.

With 20 million to 30 million Medicare patients potentially qualifying, the program could make GLP-1 treatments far more affordable and widely used.

Lilly Prepares Full Launch Amid Pricing Shift

The company is set to launch orforglipron in the second quarter, coinciding with Medicare coverage taking effect later this year.

While drug pricing agreements will initially bring a "step down" in costs, Ricks expects volume growth to accelerate in the second half of 2026 as more patients gain coverage.

New Demand Signals Strong Market Potential

Ricks noted that early users of competitor Novo Nordisk's (NYSE:NVO) Wegovy are mostly new to GLP-1 treatments, highlighting untapped demand.

He expressed confidence that Lilly's pill can compete and reach "more patients" beyond existing injection users.

Novo Nordisk Outspends Eli Lilly On GLP-1 Advertising

Novo Nordisk significantly ramped up U.S. advertising for its GLP-1 blockbusters Wegovy and Ozempic in 2025, outspending Eli Lilly as competition in the obesity and diabetes markets heated up.

According to MediaRadar data cited by Reuters, Novo Nordisk spent an estimated $316 million on Wegovy and $169 million on Ozempic from January through September 2025, up 54% and 44% from the same period in 2024.

By comparison, Eli Lilly spent about $131 million promoting its obesity drug Zepbound, up from $2 million the prior year, and $83 million on its diabetes treatment Mounjaro.

Novo Nordisk and Eli Lilly and Co. are both scheduled to report fourth-quarter earnings on Wednesday, Feb. 4, before the market opens.

Price Action: LLY closed at $1,037.15 on Friday, up 1.27% and edged down 0.12% to $1,035.88 in after-hours trading, according to Benzinga Pro.

LLY stock scores low on Value in Benzinga's Edge Stock Rankings, with a favorable price trend in the medium and long terms but downward in the short term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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