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Eli Lilly slashes prices of weight-loss drug Zepbound for single-use vials
Drugmaker Eli Lilly said Tuesday it will sell single-use vials of its weight-loss drug Zepbound at a fraction of the price of its pens, amid skyrocketing demand among Americans for anti-obesity medications.
In doing so, the company aims to expand its supply of the drug, and compete with digital health companies that sell compounded copycat versions of the drugs in vials, with syringes for injection, that are far cheaper than brand-name pens, which are pre-filled with doses. Pharmacies are permitted to sell compounded versions of drugs that are in shortage, according to the Food and Drug Administration.
“These new vials not only help us meet the high demand for our obesity medicine, but also broaden access for patients seeking a safe and effective treatment option,” Patrik Jonsson, president of Lilly Cardiometabolic Health and Lilly USA, said in a statement.
Eli Lilly will sell the vials solely through its telehealth platform, called LillyDirect, which delivers medication to patients’ homes. The move is aimed at people whose insurance won’t cover the cost of weight-loss medications, and who can’t afford their high price. The meds will only be available to customers who are self-pay.
“Distributing the vials via this channel ensures patients and providers can trust they are receiving genuine Lilly medicine, building on the company’s efforts to help protect the public from the dangers posed by the proliferation of counterfeit, fake, unsafe or untested knock-offs of Lilly’s medications,” the company said.
A four-week supply of 2.5-milligram (mg) vials is $399, or less than $100 per vial. A four-week supply of 5-mg vials is $549, or just over $137 per vial, and less than half the price of other similar medications, according to Eli Lilly.
“Outdated policies and lack of coverage for obesity medications create an urgent need for more innovative solutions. Bringing Zepbound single-dose vials to patients will help more people living with obesity manage this chronic condition. We will also continue to advocate for a system that better aligns with the science,” Johnsson said.
The syringe and vial delivery system will also allow patients to adjust their dosage as needed; some GLP-1 users have reported adverse side effects, and have had to decreases their doses.
Tupperware and some of its subsidiaries filed for Chapter 11 bankruptcy protection, the once-iconic food container maker said in a statement late Tuesday.
The company has suffered from dwindling sales following a surprise surge during the COVID-19 pandemic, when legions of people stuck at home tried their hands at cooking, which increased demand for Tupperware’s colorful plastic containers with flexible airtight seals.
A post-pandemic rise in costs of raw materials and shipping, along with higher wages, also hurt Tupperware’s bottom line.
Last year, it warned of “substantial doubt” about its ability to keep operating in light of its poor financial position.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment,” president and CEO Laurie Ann Goldman said in a statement announcing the bankruptcy filing.
“As a result, we explored numerous strategic options and determined this is the best path forward,” Goldman said.
The company said it would seek court approval for a sale process for the business to protect its brand and “further advance Tupperware’s transformation into a digital-first, technology-led company.”
The Orlando, Florida-based firm said it would also seek approval to continue operating during the bankruptcy proceedings and would continue to pay its employees and suppliers.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.
The firm’s shares were trading at $0.5099 Monday, well down from $2.55 in December last year.
Tupperware said it had implemented a strategic plan to modernize its operations and drive efficiencies to ignite growth following the appointment of a new management team last year.
“The Company has made significant progress and intends to continue this important transformation work.”
In its filing with the U.S. Bankruptcy Court for the District of Delaware, Tupperware listed assets of between $500 million and $1 billion and liabilities of between $1 billion and $10 billion.
The filing also said it had between 50,000 and 100,000 creditors.
Tupperware lost popularity with consumers in recent years and an initiative to gain distribution through big-box chain Target failed to reverse its fortunes.
The company’s roots date to 1946, when chemist Earl Tupper “had a spark of inspiration while creating molds at a plastics factory shortly after the Great Depression,” according to Tupperware’s website.
“If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste.”
Over time, Tupper’s containers became popular that many people referred to any plastic food container as Tupperware. And people even threw “Tupperware parties” in their homes to sell the containers to friends and neighbors.
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