Eli Lilly's GLP-1 Pricing Problem Is Actually a Growth Opportunity
The stock continues to look unstoppable.
Overview
Eli Lilly (NYSE: LLY) is posting excellent financial results thanks to its work in the GLP-1 market. However, some investors worry that the company could suffer from insufficient insurance coverage for its GLP-1 medicines, particularly in the weight-loss space. Many patients are left having to pay for these drugs out of pocket, and since they aren't exactly cheap, access is arguably lacking. Could this eventually become a significant problem for Eli Lilly? Perhaps, but for now, the company is turning it into an opportunity, and investors should take notice.
Image source: The Motley Fool.
First, some background. Since health insurance usually covers much, sometimes most, or even all, of the cost of prescription medicines, patients aren't exactly price sensitive. If a drugmaker reduces the price of a therapy by 10%, that may change nothing at all to what each patient pays out of pocket. However, the GLP-1 market, particularly the weight loss niche, is behaving differently.
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Source
Originally published at www.fool.com.