Eli Lilly and Co.‘s (NYSE:LLY) CEO Dave Ricks announced a significant increase in the use of GLP-1 treatments among seniors, following Medicare’s July decision to cover obesity drugs.
On Monday, Ricks said in an interview with CNBC that 70% of the 700,000 new seniors who have started these treatments are using Lilly’s medications, while many existing patients remain on Zepbound, particularly those with higher body weight and more complications.
The CEO praised Centers for Medicare and Medicaid Services (CMS) for its efficient rollout and physician education efforts, saying the broader GLP-1 coverage expansion is in line with the company’s expectations. Notably, the coverage is facilitated through a temporary program named “Bridge,” which enables eligible beneficiaries to access weight loss drugs for a $50 monthly co-pay.
Ricks also highlighted the significant role of Lilly’s recently launched obesity pill, Foundayo, in providing a convenient treatment option for patients. He stated that one-third of new patients on oral GLP-1s are opting for the pill.
“That’s growing week on week,” he said.
Lilly Plans Global Oral GLP-1 Expansion
The CEO’s comments came as Eli Lilly, on Monday, broke ground on a $6.5 billion manufacturing site in Houston, its fifth U.S. facility for producing domestic Active Pharmaceutical Ingredients (APIs). The plant will manufacture Foundayo (orforglipron) — Lilly’s first synthetic oral GLP-1 drug — along with other medicines and advanced therapies.
Ricks told CNBC that Lilly also expects to manufacture Mounjaro domestically over the long term and plans to expand its international launch to several more markets within the next six months.
“International is a big part of the oral GLP-1 story because of capacity and the efficiency…Again, we’ll make it here in Texas and ship around the world,” he said.
Analyst Raises Foundayo Sales Forecasts
Guggenheim analyst Seamus Fernandez maintained a Buy rating on Eli Lilly and raised his price target to $1,284 from $1,273, citing strong U.S. tirzepatide sales. Fernandez also maintained 2026 Foundayo estimates despite the lower 2.5 mg price, citing improving prescriptions. The pill’s sales forecasts for 2027 and 2028 were raised to $1.8 billion and $3.7 billion, respectively, on early positive launch trends.
Earlier this month, Lilly said Phase 3 ACHIEVE-4 data showed Foundayo reduced the risk of major cardiovascular events by 23% versus insulin glargine.
Price Action: On a year-to-date basis, LLY stock surged 8.39%, as per Benzinga Pro. On Monday, it closed 1.04% higher at $1,164.89. The stock declined about 1.96% to $1,142 premarket on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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