The program comes as demand for GLP-1-based therapies continues to reshape the pharmaceutical market.
Eli Lilly is expanding access to its obesity medications through a new Medicare initiative, a move that could strengthen its position in one of the fastest-growing and most lucrative segments of the global pharmaceutical industry.
Beginning July 1, eligible Medicare Part D beneficiaries can obtain Lilly’s obesity treatments Foundayo (orforglipron)and Zepbound (tirzepatide) for $50 per month through the company’s new Medicare GLP-1 Bridge Program, provided they meet the clinical eligibility criteria established by the Centers for Medicare & Medicaid Services (CMS).
The program comes as demand for GLP-1-based therapies continues to reshape the pharmaceutical market. These treatments mimic a naturally occurring gut hormone that helps regulate blood sugar, slows digestion and increases feelings of fullness, making them highly effective for chronic weight management.
According to Goldman Sachs, the global obesity drug market could generate approximately $130 billion in annual sales by 2030, driven by growing demand for therapies such as Lilly’s Zepbound and Novo Nordisk’s Wegovy.
The rapid expansion of the category has intensified competition among drugmakers. Strong demand for GLP-1 therapies has helped make Eli Lilly the world’s most valuable pharmaceutical company, while Novo Nordisk’s obesity portfolio has fueled years of record growth.
Lilly estimates that nearly 20 million Medicare beneficiaries could meet the clinical criteria for obesity treatment, representing a significant opportunity to expand access to medications that historically have had limited coverage among older adults.
The Medicare GLP-1 Bridge Program will remain available through Dec. 31, 2027, covering both Foundayo, Lilly’s recently approved oral obesity treatment, and Zepbound, its injectable therapy for chronic weight management.
The initiative also reflects a broader trend across the pharmaceutical industry to expand insurance coverage for obesity treatments and reduce patients’ out-of-pocket costs. Analysts say broader reimbursement will be critical to sustaining long-term growth in the obesity drug market as manufacturers compete for market share in the rapidly expanding GLP-1 segment..
