Eli Lilly Taps Walmart to Expand Zepbound Retail Access
The partnership leverages Walmart's vast pharmacy network for Lilly's direct-to-consumer platform, intensifying the battle for the multi-billion-dollar weight-loss drug market.
Eli Lilly & Co. is partnering with Walmart to offer its popular weight-loss drug Zepbound for pickup at the retail giant's U.S. pharmacies, a strategic move that significantly broadens patient access and strengthens its direct-to-consumer sales channel.
The collaboration, announced Wednesday, will allow patients who receive a Zepbound prescription through Lilly's telehealth and online pharmacy platform, LillyDirect, to pick up the medication at nearly 4,600 Walmart locations nationwide starting in mid-November. Shares of Eli Lilly (LLY) rose modestly in morning trading, adding 0.86% to $827.14, as investors digested a move that escalates its market share battle with rival Novo Nordisk.
This partnership marks the first time Lilly will offer a retail pickup option for patients paying directly for Zepbound, a critical step in a market where high list prices and inconsistent insurance coverage have become significant barriers. By leveraging Walmart’s extensive retail footprint, Lilly can now reach a vast patient population that prefers or requires an in-person pharmacy experience over mail-order delivery.
Bypassing Insurance Hurdles
The direct-to-consumer model is becoming a key strategy for pharmaceutical companies, particularly in the booming market for GLP-1 agonists like Zepbound and Novo Nordisk's Wegovy. Lilly is offering Zepbound vials with direct-to-consumer pricing, starting at $349 per month for the lowest dose, a discount of over 50% from the list price of similar obesity treatments. This self-pay option is available to patients regardless of their insurance status.
"This combination of LillyDirect's patient-centered digital platform with Walmart’s vast pharmacy footprint is designed to streamline access to prescribed treatment," Jennifer Mazur, Senior Vice President and General Manager of LillyDirect, said in a statement. The company noted that about 35% of new Zepbound prescriptions in the second quarter were already being filled through its direct self-pay channel, signaling strong consumer demand for alternatives to the traditional insurance-based system.
The move is a direct challenge to competitors and aims to capture the large segment of cash-paying patients. The high cost of these transformative therapies—often exceeding $1,000 per month without insurance—has limited access for many. By establishing a more affordable and accessible retail channel through a partner like Walmart, Lilly is positioning Zepbound as a more attainable option for millions.
A New Front in the Obesity Drug Market
The weight-loss drug market is projected to reach $100 billion by the end of the decade, and the competition between Eli Lilly and Danish drugmaker Novo Nordisk is intense. While Novo Nordisk had a first-mover advantage with its drugs Ozempic and Wegovy, Lilly has rapidly gained ground. Recent prescription data shows Lilly overtaking its rival in new U.S. prescriptions for obesity treatments.
Eli Lilly, now the largest healthcare company in the world by market value with a capitalization of over $735 billion, has seen its stock soar on the blockbuster potential of Zepbound and its diabetes counterpart, Mounjaro. The company's quarterly revenue growth has been robust, up over 37% year-over-year, largely driven by these drugs.
Analysts have set an average price target of around $898 for LLY shares, reflecting continued optimism about its growth trajectory. This partnership with Walmart is likely to reinforce that positive sentiment, as it addresses key logistical and pricing challenges that could have otherwise slowed adoption.
"The ability to offer both local pickup and home delivery provides patients with more choice in how they access their prescribed medicines," said Vinod J. Daniel, Vice President of Omnichannel Health at Walmart U.S. The collaboration not only benefits Lilly but also drives significant prescription foot traffic to Walmart's pharmacies, reinforcing its position as a major healthcare destination.
As the market for obesity treatments matures, the battle for dominance will increasingly be fought on the fronts of access, convenience, and price. With this strategic retail partnership, Eli Lilly has made a decisive move to solidify its position and ensure Zepbound reaches the widest possible audience.