Eli Lilly CEO Dave Ricks on Friday stated upcoming Medicare protection of weight problems medicine could possibly be a serious catalyst for the rollout of the corporate’s intently watched experimental weight reduction capsule, orforglipron.
In an unique interview with CNBC, Ricks stated Lilly expects to have Medicare protection for the therapy “instantly following that launch, and that may change the sport a bit too.”
He stated that is as a result of many sufferers are at the moment paying in money for competitor Novo Nordisk‘s GLP-1 capsule for weight problems. That launched earlier this month and is off to a powerful begin, even with spotty insurance coverage protection.
Ricks stated he seen that almost the entire early adopters of Novo’s Wegovy capsule are new to GLP-1 therapies relatively than customers of current injections, so “it is expansive, it is reaching extra sufferers and that is nice.”
He added that Lilly is assured in its capsule’s potential to compete and is getting ready for a “full launch” within the second quarter. The rollout is ready to coincide with Medicare beginning to cowl weight problems medicines for the primary time later this 12 months beneath drug pricing offers Lilly and Novo struck with President Donald Trump in November.
Eli Lilly CEO Dave Ricks speaks throughout a press convention in Houston, Sept. 23, 2025.
Antranik Tavitian | Reuters
That authorities protection will convey the worth level of tablets even decrease within the second half of the 12 months, Ricks stated. Sure Medicare sufferers can pay a copay of $50 monthly for all permitted makes use of of injectable and oral GLP-1 medicine, together with diabetes and weight problems therapy.
“That opens up issues fairly huge, and we’ll see the place we are able to go from there,” Ricks stated.
Medicare protection of weight problems therapies is a long-awaited transfer that some well being specialists say might broaden the marketplace for the medicines and spur extra non-public insurers to cowl them. Ricks estimates that 20 million to 30 million Medicare beneficiaries who’re affected by weight problems and associated well being circumstances could possibly be eligible for GLP-1 therapies, so protection is a “huge multiplier on the eligible pool.”
Ricks acknowledged that beneath the drug pricing deal, there will likely be “a step down in pricing” early this 12 months. The agreements contain drugmakers voluntarily providing their drugs for much less, together with promoting their current therapies to Medicaid sufferers on the lowest costs overseas, and guaranteeing that so-called most-favored nation pricing for brand spanking new medicines.
However Ricks stated quantity development of Lilly’s medicine “will ramp on the again half of the 12 months.’
“We expect that is a optimistic stability for us, however time will inform,” he stated, including that will probably be primarily based on uptake of the therapies amongst Medicare sufferers and the corporate’s share of that adoption.
Lilly will share extra particulars on the monetary affect of the deal when it posts its fourth-quarter earnings and 2026 steerage subsequent week, he stated.
The value agreements embody commitments to launch medicine at discounted cash-pay costs on Trump’s direct-to-consumer platform, TrumpRx. That web site, which was anticipated to launch in January, is just not but reside.
Ricks stated Lilly was the primary drugmaker to promote weight problems therapies on to sufferers by the corporate’s platform, LillyDirect, and TrumpRx is “taking that and increasing it throughout the business” to different medicines.
“We’re all for that,” he stated.
