Lilly’s Q1 revenue surge overshadowed by CVS dumping Zepbound for Wegovy

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Lilly's Q1 Revenue Soars 45% But Zepbound Setback Looms After CVS Drops Coverage

Eli Lilly reported a 45% year-over-year revenue increase in Q1 2025, reaching $12.73 billion, primarily driven by strong sales of its diabetes and obesity drugs Mounjaro and Zepbound2 3 5.
Despite the revenue surge, Lilly missed its EPS forecast, posting $3.34 per share versus the expected $3.46, which contributed to an 8.56% decline in the company's stock price following the earnings report1.
Zepbound, Lilly’s high-profile weight-loss drug, faces a major setback as CVS Health announced it will remove Zepbound from its standard drug formulary in favor of Novo Nordisk's Wegovy and Saxenda, effective July 1, 20254.
CVS Health’s decision means millions of patients whose employers use CVS's standard pharmacy benefit plan will lose default coverage for Zepbound, potentially impacting future prescription volumes significantly4.
Patients currently using Zepbound through CVS coverage will be able to switch to Wegovy, according to CVS Health4.
Employers and insurers could still choose to offer Zepbound, but most tend to follow the standard formulary due to negotiated discounts4.
Lilly reaffirmed its 2025 revenue guidance between $58.0 billion and $61.0 billion and announced accelerated manufacturing investments to meet global demand for its new drugs3.
Lilly's pipeline also showed progress, including successful Phase 3 results for its oral GLP-1 candidate orforglipron in diabetes3.