Eli Lilly announced on November 11, 2025 that it would terminate its employee drug benefit plan that had been administered through CVS Health, with the change taking effect on January 1, 2026. The decision follows CVS’s recent shift to prioritize Novo Nordisk’s Wegovy over Lilly’s Zepbound, citing more favorable pricing terms for the former.
CVS’s spokesperson, David Whitrap, explained that the company’s move to negotiate Lilly and Novo against each other “drove significant savings for our clients.” By positioning Wegovy as the preferred GLP‑1 therapy on its formularies, CVS secured a lower wholesale acquisition cost and a larger margin on the drug, which outweighed the higher cost of covering Zepbound for its commercial plans. The pricing advantage was a key driver in CVS’s decision to exclude Zepbound from its standard formulary and to offer it only as a higher‑tier option.
In response, Lilly selected Rightway as its new pharmacy‑benefit‑manager. A Lilly spokesperson noted that the company “routinely reviews its benefit service providers to guarantee it offers a high‑quality, cost‑effective coverage” and that Rightway’s fee structure aligns with Lilly’s interests in promoting its GLP‑1 portfolio. The switch allows Lilly to maintain tighter control over benefit costs while ensuring employees have access to its high‑growth weight‑loss drug franchise.
Financially, the loss of Lilly’s employee plan represents a sizable hit to CVS’s PBM revenue. CVS reported Q3 2025 revenue of $102.9 billion, up 7.8% year‑over‑year, with an adjusted EPS of $1.60. While the company raised its full‑year 2025 adjusted EPS guidance to $6.55‑$6.65, the departure of a major client like Lilly is expected to reduce pharmacy‑benefit‑management income and could pressure future earnings growth.
Lilly’s own financials underscore the strategic importance of the move. The company posted Q3 2025 revenue of $17.60 billion, a 54% increase year‑over‑year, driven largely by sales of Zepbound and Mounjaro. Lilly raised its full‑year 2025 revenue guidance to $63 billion‑$63.5 billion, reflecting confidence in its GLP‑1 pipeline. By aligning its employee benefits with its business interests, Lilly aims to protect the commercial momentum of its weight‑loss drugs.
The event highlights the intense competition in the GLP‑1 market and the pivotal role of pharmacy‑benefit‑managers in shaping drug access. CVS’s prioritization of Wegovy demonstrates how pricing negotiations can shift formulary decisions, while Lilly’s move to Rightway illustrates a broader trend of pharmaceutical companies seeking greater control over benefit administration to safeguard revenue streams tied to high‑margin therapies.
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