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Eli Lilly announced that it is expanding its offerings of its hit weight loss drug Zepbound on Tuesday, a few days after the Food and Drug Administration lifted a shortage on Novo Nordisk’s Wegovy and Ozempic.

The drugmaker will now offer 7.5mg and 10mg doses of Zepbound, which uses the active ingredient tirzepatide, in single-dose vials.

The medications are available for $499 during a patient’s first month and refills that occur 45 days after through Lilly’s Self Pay Journey Program. 

This compares to the set price of the dosages at $599 and $699, if accessed without the self-pay program. 

The drugmaker also lowered the cost for its existing 2.5mg and 5mg vials. A four-week supply for each of the dosages will respectively cost $349 and $499, compared to the $399 and $549 price tag launched last August. 

Lilly’s expanded Zepbound offerings further underscore the drugmaker’s influence as one of the two market leaders in the diabetes and obesity care space.

In a statement, Lilly called on industry stakeholders to change policies in order to better treat obesity as a chronic disease.

“Lilly is committed to working with all parties to solve this problem, and in the meantime, we’ll continue to implement new options that improve the affordability and availability of our safe, approved and studied Zepbound for patients who are being asked to pay out-of-pocket,” stated Patrik Jonsson, EVP and president of Lilly Cardiometabolic Health and Lilly USA.

The drugmaker’s announcement also put Lilly’s Self Pay Journey Program front and center. The company said the platform “enables a transparent price” by removing third-party supply chain entities and allowing patients to access savings directly outside of insurance.

In addition to coming days after the FDA lifted the shortage notice for Novo’s semaglutide products, Lilly’s announcement also coincided with some other significant developments in the GLP-1 space.

On Monday, drug compounders sued the FDA for lifting the shortages on Novo’s Wegovy and Ozempic. Compounded products offered by companies like Hims & Hers feature semaglutide as an active ingredient. 

In December, the FDA lifted the shortage on tirzepatide, the active ingredient in Lilly’s Zepbound, after it has been listed on the shortage list for two years. 

503A compounding pharmacies were given until February 18 to stop compounding exact versions of the drug using tirzepatide. 503B compounding pharmacies, which distribute drugs to facilities like hospitals, have until March 19 to halt production of exact copies. 

While some compounders have reacted negatively to the FDA’s decision to lift shortages on tirzepatide and semaglutide, others aren’t taking the decision too harshly. 

“There was always a sense that the drug shortages would end,” said Tara Thompson, a pharmacist and VP of clinical services at Revelation Pharma, which is a network of 503A and 503B compounding pharmacies. 

She added that as most compounders offer a variety of services beyond GLP-1 weight loss drugs, these pharmacies will likely double down on areas that have seen increased demand. This includes treatments like hormone replacement therapies, animal services and personalized medicines for chronic diseases. 

According to a recent report from Transparency Market Research, the global compounding pharmacy market is expected to grow at a compound annual growth rate of 6.5%, reaching $26.8 billion by 2034. This is double what the market was estimated at in 2023. 

While it remains unclear whether compounding pharmacies will continue to operate and invest in the GLP-1 space like they used to, Thompson also noted that these entities have other opportunities available to them. This could include creating specific products for individuals dealing with the side effects of taking branded GLP-1 treatments. 

“Because compounding pharmacies are able to make specific drugs, we are able to create drugs for people who react to products in a certain way,” Thompson said.