On August 27, local time Tuesday, Eli Lilly announced on their official website that a smaller dosage version of Zepbound (tirzepatide injection) is now available in the United States, and patients can purchase it on Lilly’s direct website, “LillyDirect.”
It is understood that tirzepatide is an innovative glucose-dependent insulinotropic polypeptide (GIP/glucagon-like peptide-1 (GLP-1) receptor agonist) administered once a week, marketed under the name Mounjaro for the treatment of type 2 diabetes, and as Zepbound for long-term weight management.
Zepbound comes in six dosages (2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, and 15 mg), allowing patients to gradually increase their dosage. Regardless of the dosage, the four-week supply of the injection was originally priced at $1059.87 (approximately ¥7553).
According to Lilly’s latest pricing, a single 2.5 mg dose, sufficient for a four-week treatment, is priced at $399 ($99.75 per vial); the 5 mg version is priced at $549 ($137.25 per vial), which is nearly a 50% discount from the original pricing.
Lilly stated that this move will help the company expand the supply of Zepbound to meet the high market demand. Additionally, this new option can help millions of adults with obesity, who are not covered by US health insurance, access the medication they need.
According to data on the official website, in a 72-week study, the group taking the 5 mg dosage of Zepbound lost 15% of their body weight, although this was less than the 20.9% weight loss in the 15 mg group, yet still better than the placebo group’s 3.1%.
Source: Zepbound official website
Patrik Jonsson, Senior Vice President of Eli Lilly, President of Lilly Cardiometabolic Health, and President of Lilly USA, wrote, “These new dosages not only help us meet the high demand for obesity medications but also broaden treatment options for patients seeking safe and effective treatment solutions.”
Media analysis suggests that the original price of the tirzepatide injection was slightly lower than that of Novo Nordisk’s competing product Wegovy ($1,349), and the smaller dosages will help Lilly gain a more significant advantage in the price war. Additionally, Lilly can produce more medications with limited active pharmaceutical ingredients (API).
Morgan Stanley analysts stated in a recent report that although this move may temporarily lower the average price of Zepbound, the sales volume of smaller dosages “could ultimately have a positive impact on Lilly’s overall sales.”
Evan Seigerman, Managing Director and Senior Research Analyst at BMO Capital Markets, believes that Lilly has improved patient medication access by introducing smaller dosages, significantly reducing the need for compounding (diluting medications).
Lilly also mentioned in its statement that the direct website helps eliminate third-party supply chains, ensuring transparent pricing. Jonsson noted that this means there are no middlemen increasing the prices, which is very important for consumers, “For patients, this makes pricing predictable.”
On the same day, pharmaceutical giant Pfizer also launched a similar website “PfizerForAll.” Tim Mackey, a professor at the University of California San Diego studying the pharmaceutical industry, suggested that large drug companies might engage in a direct-to-consumer sales arms race.
Mackey stated, “This is indeed the next development direction, as the rise of telemedicine has made drug manufacturers realize they need to enter this area.”
(Finance Association, Zhao Hao)
