CVS Caremark Sued Over Removal of Eli Lilly's Zepbound from Coverage List.

CVS Caremark is facing a class action lawsuit for dropping Eli Lilly's weight loss medication Zepbound from its covered formulary list and replacing it with another medication. The lawsuit alleges that CVS Caremark's decision was made without proper consideration of the benefits and risks of Zepbound, and that it breached its fiduciary duty to Aetna and its members.

CVS Caremark is under fire as it faces multiple federal lawsuits from patients challenging its decision to remove Eli Lilly's weight loss drug Zepbound from its list of preferred medications. The lawsuits allege that CVS Caremark acted improperly by ending coverage for Zepbound after signing a rebate agreement with Wegovy maker Novo Nordisk A/S [1].

The decision to remove Zepbound from the formulary list was made despite its unique benefits. Zepbound is the only FDA-approved treatment for obstructive sleep apnea, a condition that affects millions of Americans. Patients and health plan participants argue that CVS Caremark overlooked these important differences between Zepbound and Wegovy when making its decision [1].

The move has sparked concerns among investors and financial professionals. Eli Lilly's Zepbound underperformed in sales during the third quarter, which raised concerns about the outlook of the weight loss drug market. However, Novo Nordisk's Wegovy reassured investors with strong sales performance [2].

Eli Lilly attributed the sales shortfall of Zepbound to wholesalers cutting back on inventory, rather than weak demand. The company's CEO, Dave Ricks, stated that the potential demand for Zepbound remains strong in the market [2].

Despite these challenges, the weight loss drug market still has vast prospects. Most institutions predict that the market size will reach the billion-dollar level by the end of this decade. Novo Nordisk's Wegovy and Eli Lilly's Zepbound are among the leaders in this market, but many other pharmaceutical companies are intensifying their research and development efforts to gain a share of this highly potential market [2].

References:
[1] https://news.bloomberglaw.com/employee-benefits/cvs-caremarks-boosting-of-wegovy-over-zepbound-fuels-lawsuits
[2] https://www.moomoo.com/news/post/59269675/record-tr4cking-news-august-jobs-report-preview-a-september-cut-is-a-given