In an exclusive CNBC interview, CEO Dave Ricks confirmed that Eli Lilly expects Medicare to cover its experimental obesity pill, orforglipron, immediately upon its launch in the second quarter. This marks the first time Medicare will cover obesity medicines, following negotiated drug pricing deals struck last November. Lilly anticipates that broad coverage will reduce the cash-pay burden on patients who have been turning to competitor GLP-1 pills, and believes the policy change could substantially expand the addressable market beyond existing injection users. The company is preparing for a "full launch" with manufacturing, distribution and patient support programs scaled to meet demand created by the new reimbursement landscape.

Eli Lilly announced a $3.5 billion investment to build a new manufacturing plant in Lehigh Valley, Pennsylvania, dedicated to producing next-generation obesity treatments, including retatrutide. Construction is slated to begin this year, with operations targeted for 2031. The facility will create 850 permanent positions—engineers, scientists, operations personnel and lab technicians—as well as 2,000 construction jobs. This project represents the fourth of at least six planned domestic plants and is part of Lilly’s broader $50 billion U.S. manufacturing program initiated since 2020. Enhanced production capacity is critical to avoid past supply constraints that curtailed weekly injection availability.

In 2025, Lilly allocated approximately $214 million to promote its obesity drug Zepbound and diabetes treatment Mounjaro in the U.S., compared with Novo Nordisk’s combined $487 million on Wegovy and Ozempic. Despite investing less than half as much in advertising, Lilly captured roughly 60 percent of U.S. obesity drug prescriptions last year, according to IQVIA data. Moreover, head-to-head clinical results released in late 2024 showed Zepbound users achieved 47 percent greater weight loss than Wegovy patients, underpinning market share gains. With advertising still ramping up and new product launches on the horizon, analysts expect Lilly to defend and potentially extend its leadership position.

Eli Lilly has entered a strategic collaboration with Repertoire Immune Medicines valued at up to $1.93 billion to develop therapies for multiple autoimmune diseases. Under the agreement, Lilly will fund discovery and development activities, with milestone payments tied to the advancement of Repertoire’s deep-learning–driven platform. The deal expands Lilly’s immunology portfolio, which already includes several late-stage candidates, and demonstrates the company’s commitment to diversifying beyond its weight management franchise. Investors view the partnership as a high-potential opportunity to unlock next-generation biologics while leveraging Lilly’s global development and commercialization infrastructure.