Lilly dealt blow as Novo lands CVS deal for Wegovy

Danish drugmaker Novo Nordisk (NOV: N) has secured a significant advantage in the high-stakes obesity drug market after landing a new formulary deal with US pharmacy benefits giant CVS Health (NYSE: CVS) that will give its weight-loss drug Wegovy (semaglutide) preferred status over Eli Lilly’s (NYSE: LLY) rival treatment Zepbound (tirzepatide).

Starting July 1, Wegovy will become the preferred GLP-1 drug for weight loss on CVS Caremark’s largest commercial formularies, which cover tens of millions of Americans. That means Zepbound will be excluded from those coverage lists, though some patients already using it may qualify for exceptions.

Novo Nordisk said the decision reflects growing confidence in Wegovy’s clinical value and the company’s commitment to making the drug more affordable and accessible. “It is our responsibility to continue to work with others across the US healthcare system to find innovative opportunities to meet the needs of these patients and connect them with authentic, FDA-approved Wegovy in a convenient and affordable way,” said Dave Moore, Novo's head of US operations.