Eli Lilly Stock Rises on Medicare Weight-Loss Drug Coverage Proposal

Eli Lilly shares climbed 3% Friday following reports of a potential Medicare pilot program covering obesity treatments like its GLP-1 drug Zepbound. The Washington Post revealed CMS documents outlining a five-year plan to allow Medicare Part D and Medicaid coverage for weight-loss medications, addressing a key affordability barrier for patients.

The news comes amid White House pressure on pharmaceutical pricing, with President TRUMP recently demanding lower drug costs from healthcare CEOs. While details remain scarce, the market responded cautiously positive—boosting not only Lilly but also rival Wegovy developer Novo Nordisk.

Zepbound's commercial potential grows as regulatory pathways expand. With obesity affecting 42% of U.S. adults, Medicare coverage could significantly widen the drug's addressable market. The pilot program aligns with broader cost-saving initiatives targeting essential medications for American consumers.