From CNBC:

Eli Lilly is launching a new website that offers telehealth prescriptions and home delivery of its weight-loss drug, Zepbound, to increase patient access. Analysts say this move could prompt other drugmakers to follow suit, potentially disrupting the supply chain and price structure for prescription drugs in the U.S. Lawmakers and the Biden administration are adding pressure to cut consumer costs and increase pricing transparency, as well.

Eli Lilly’s Zepbound weight-loss drug was approved by the FDA two months ago and is expected to make over $1 billion in sales in its first year. The new platform, LillyDirect, aims to make it easier for patients to access chronic disease treatments, including the highly sought-after weight loss drugs. Analysts are not convinced that Lilly’s approach alone will significantly disrupt the traditional drug distribution system but it poses a possible threat in the near future.

Customers who receive prescriptions on Lilly’s website can have a third-party online pharmacy deliver their medication to their door, and those with insurance could pay as little as $25 out-of-pocket thanks to Eli Lilly’s savings-card programs. This transparent pricing is seen by industry experts as a challenge to pharmacy benefit managers (PBMs) such as CVS, UnitedHealth Group and Cigna.

Eli Lilly’s move may prompt other pharmaceutical companies to adopt a direct-to-consumer model, experts say. The reformation comes as other companies, such as CVS Health and Cigna, make movements to simplify the traditional drug supply chain model. Cuban’s direct-to-consumer pharmacy, Cost Plus Drugs, poses a threat to industry giants such as CVS, and even Amazon Pharmacy has seen some success.



Read more: Eli Lilly weight loss drug site may not upend industry