Eli Lilly Uses LilyDirect To Sell Weight Loss Drugs Straight to Consumers

Eli Lilly, a renowned pharmaceutical company, is primed to redefine the traditional drug distribution model by vending their medicines, particularly their burgeoning weight-loss drugs, directly to consumers. This strategy aims to circumvent the often-criticized intermediaries involved in drug distribution. The unconventional move stems from the considerable financial benefits associated with the proliferation of weight-loss drugs, prompting a shift in the industry’s standard practices.

Eli Lilly announced on Thursday its plans to unveil LillyDirect, a telehealth platform that will offer patients prescriptions for conditions such as obesity, diabetes, and migraines. While a third-party fulfillment service will oversee the free shipping, patients will procure their medicines directly from Eli Lilly, according to the company.

Eli Lilly’s CEO, David Ricks, compared this new method to purchasing consumer products directly from manufacturers via online platforms, a model that until now has been largely unexplored for prescription drugs. The change could revolutionize typical marketing strategies in the pharmaceutical sphere, according to Lee Brown, global sector lead for healthcare at research firm Third Bridge.

Potential users of Eli Lilly’s medicines might appreciate this easier path to acquiring their prescriptions directly from the source, bypassing their primary care provider’s office — removing a substantial hurdle for patients who may be reluctant to visit their practitioners.

This ground-breaking announcement coincides with the intensifying rush among pharmaceutical and health-focused firms to exploit a new tier of weight-loss drugs, including Lilly’s recently approved Zepbound, that will be marketed through the new platform.

For instance, WeightWatchers drastically shifted its focus from primarily diet planning to acquiring Sequence, a telehealth platform, last year. Sequence grants customers access to weight-loss medicines via healthcare providers. However, WeightWatchers’ stock took an 11% hit following Eli Lilly’s announcement.

This initiative aligns with the ongoing trend toward streamlining drug delivery and pricing structures. Last month, CVS Health declared its intent to revamp its drug payment system, favoring a more transparent model that could potentially eradicate confusion relating to drug costs. This model, denoted as the “cost plus” model and in line with Mark Cuban’s Cost Plus Drugs, marks up medicines from their base cost by 15%, with an additional $3 pharmacy fee.

However, various consumer advocacy groups argue that big pharma plays a pivotal role in escalating drug prices. Just last month, the Institute for Clinical and Economic Review reported that eight out of the 10 drugs that saw substantial net price hikes in 2022, which significantly impacted U.S. spending, did not possess enough new evidence to warrant any price increases.