CVS Health's Strategic Move to Offer Wegovy: A Catalyst for Value and Growth in the U.S. Healthcare Sector

In July 2025, CVS Health and Novo Nordisk announced a landmark partnership to position Wegovy as the preferred GLP-1 receptor agonist for obesity management on Caremark's largest commercial template formularies, according to a Novo Nordisk press release. This strategic shift, effective July 1, 2025, removes Eli Lilly's Zepbound from standard formularies, replacing it with Wegovy while ensuring continuity of care for existing Zepbound patients, according to a Benzinga report. The move is framed as a dual effort to enhance patient access and reduce costs, with Wegovy available at $499 per month for self-pay patients through NovoCare Pharmacy and local CVS locations, per a CVS earnings analysis. For investors, this partnership represents a pivotal moment in the evolving landscape of value-based care, where cost-effectiveness and therapeutic outcomes are increasingly intertwined.

Market Dynamics and Financial Implications

CVS's decision to prioritize Wegovy reflects a calculated response to the rising demand for GLP-1 therapies, which have become cornerstone treatments for obesity and related metabolic conditions. According to the Benzinga report, the partnership follows Caremark's negotiation of an undisclosed lower net price for Wegovy compared to Zepbound, a move CVS claims will generate savings for clients opting into these plans. However, the extent to which these savings translate to patient affordability remains contingent on employer and union decisions regarding plan design, as noted in the Novo Nordisk press release.

The financial performance of CVS Health underscores the strategic importance of this partnership. In Q1 2025, the company reported a 7% year-over-year revenue increase, with adjusted earnings per share (EPS) surging to $2.25 from $1.31, exceeding Wall Street expectations, according to the Benzinga report. Analysts attribute this growth to CVS's ability to leverage its pharmacy benefit manager (PBM) expertise to secure favorable drug pricing, a critical factor in an era of escalating healthcare costs. BMO Capital Markets' Evan Seigerman notes that the Wegovy deal does not signal the start of a pricing war between Novo Nordisk and Eli Lilly but rather a shared focus on expanding access, per coverage in Benzinga.

Competitive Landscape and Clinical Efficacy

Despite the shift in formulary preference, Eli Lilly's Zepbound and Mounjaro continue to dominate the GLP-1 market, collectively capturing over 50% of U.S. prescriptions as of Q2 2025, according to an NBC Connecticut report. Clinical data further highlights Lilly's edge: Zepbound demonstrated a 20.2% average weight reduction in trials, outperforming Wegovy's 13.7%, as reported by NBC Connecticut. However, Novo Nordisk's strategic advantage lies in its broader semaglutide portfolio, which extends beyond obesity to chronic disease management, potentially securing long-term growth in value-based care models, an argument advanced in NBC Connecticut's coverage.

Eli Lilly's CEO, David Ricks, has emphasized the company's preference for direct consumer engagement over exclusive PBM deals, signaling a defensive posture against formulary exclusivity pressures, as noted in an S&P Global report. Meanwhile, Novo Nordisk's partnership with CVS aligns with its mission to expand semaglutide's role in treating conditions like diabetes and cardiovascular disease, areas where value-based care metrics are increasingly tied to long-term health outcomes, according to NBC Connecticut.

Strategic Alignment with Value-Based Care

The partnership underscores CVS Health's pivot toward value-based care, a paradigm prioritizing cost-effective treatments that improve population health. By securing lower net pricing for Wegovy, CVS addresses two critical challenges: reducing the financial burden on patients and employers while promoting adherence to evidence-based therapies. As stated by a CVS Health spokesperson, this initiative aligns with the company's broader strategy to combat the obesity epidemic, a leading driver of healthcare expenditures in the U.S., as described in the Benzinga report.

Moreover, CVS's decision to exit the Affordable Care Act (ACA) individual exchanges in 2026 reflects a strategic realignment toward core services like pharmacy and telehealth, according to the Novo Nordisk press release. This move, coupled with the Wegovy partnership, positions CVS to capitalize on the growing demand for integrated healthcare solutions, particularly in chronic disease management. Analysts at NBC Connecticut argue that the partnership's emphasis on affordability and access could strengthen CVS's role as a key player in value-based care ecosystems.

Investment Considerations

For investors, the partnership introduces both opportunities and risks. On the upside, CVS's ability to negotiate favorable drug pricing enhances its margins and reinforces its PBM dominance. Novo Nordisk, meanwhile, gains a critical foothold in the U.S. obesity market, where Wegovy's projected 2025 sales are expected to reach $12.5 billion, according to S&P Global. Conversely, Eli Lilly's strong clinical performance and diversified GLP-1 portfolio (Mounjaro and Zepbound) suggest it remains a formidable competitor, with 2025 revenue forecasts exceeding $30 billion, as reported by S&P Global.

Regulatory and pricing pressures also loom large. Both Novo Nordisk and Eli Lilly face scrutiny over drug pricing, with policymakers increasingly advocating for transparency and cost containment. CVS's role as an intermediary in these dynamics positions it to navigate regulatory headwinds while maintaining its focus on value-based care.

Historically, CVS Health's consistent ability to exceed earnings expectations since 2022 has demonstrated strong operational efficiency and investor confidence, as outlined in the CVS earnings analysis. This track record of outperforming forecasts has translated into positive stock price reactions, reinforcing the company's appeal as a long-term investment. Analysts have maintained or increased price targets in response to these earnings beats, underscoring the broader market's recognition of CVS's strategic execution.

Conclusion

CVS Health's partnership with Novo Nordisk to prioritize Wegovy represents a strategic masterstroke in the U.S. healthcare sector. By aligning with value-based care principles, the company not only addresses the urgent need for affordable obesity treatments but also strengthens its position as a leader in chronic disease management. For investors, the move highlights the transformative potential of partnerships that bridge innovation, affordability, and long-term health outcomes-a formula likely to drive growth in an increasingly cost-conscious healthcare landscape.