Lilly, Novo Nordisk back direct-to-employer programs to expand access to weight-loss drugs

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(Reuters) -Eli Lilly said on Friday it plans to roll out an employer-focused obesity care model early next year, aiming to expand access to its blockbuster weight-loss drug through partnerships with third-party firms.

The program would give employers flexible cost-sharing options and integrate clinical support, Lilly said, bypassing traditional drug sales channels.

“Obesity care is the next frontier in employer health benefits,” said Ilya Yuffa, Lilly executive vice president.

“Companies that act now will lead the way, closing coverage gaps and building healthier, more resilient workforces.”

Separately, companies, including digital health firm Waltz Health and cardiometabolic care provider 9amHealth announced direct-to-employer programs in collaboration with Lilly and its Danish rival Novo Nordisk for their weight-loss drugs.

Novo and Lilly currently dominate the lucrative obesity treatment market, which analysts estimate could be worth $150 billion annually by the early 2030s, with their highly effective drugs designed to mimic the appetite-suppressing GLP-1 hormone.

“Transparent initiatives like these enable more employers to opt in to coverage for authentic, FDA-approved GLP-1 medicines while providing people who need care with a seamless experience that allows them to prioritize their health,” a Novo Nordisk spokesperson told Reuters.

Novo and Lilly have been trying to expand access to their blockbuster weight-loss treatments in the United States and eliminate unapproved, compounded versions, which are made by combining, mixing or altering drug ingredients.

The drugmakers had cut a deal with the U.S. administration earlier this month to slash the prices of its weight‑loss drugs for the government’s Medicare and Medicaid health insurance programs, as well as for cash payers.

(Reporting by Mariam Sunny in Bengaluru; Editing by Krishna Chandra Eluri)