Eli Lilly CEO Dave Ricks told CNBC that the company expects Medicare to begin covering obesity drugs “immediately following” the launch of its experimental oral GLP-1 pill, orforglipron. This policy change, driven by drug-pricing agreements struck with the U.S. government in November, could unlock a patient base that currently pays in cash for competing injectable therapies. Lilly plans a full commercial rollout in Q2, targeting both newly diagnosed obesity patients and those seeking alternatives to existing injections.

Lilly announced a $3.5 billion investment to build a new manufacturing site in Lehigh Valley, Pennsylvania, expected to be operational by 2031. The facility will produce next-generation obesity injections such as retatrutide, which delivered the highest weight-loss results in late-stage trials. The project will create 850 permanent roles—including engineers, scientists and lab technicians—and approximately 2,000 construction jobs, forming the company’s fourth major domestic plant under its $50 billion U.S. expansion program since 2020.

Despite Novo Nordisk’s larger ad budget—approximately $487 million spent on Wegovy and Ozempic in the first nine months of 2025—Lilly captured roughly 60% of the U.S. obesity drug market last year, benefiting from clinical data showing Zepbound users lost 47% more weight than Wegovy users. Lilly allocated about $131 million to Zepbound and $83 million to its diabetes treatment Mounjaro over the same period, underscoring efficient spend relative to market impact.

Lilly secured a collaboration with Repertoire Immune Medicines valued at up to $1.93 billion to develop novel therapies for multiple autoimmune diseases. The deal includes upfront payments, research funding and milestone-based payments, strengthening Lilly’s immunology portfolio and diversifying its pipeline beyond metabolic disorders. Analysts note the agreement enhances long-term growth prospects by leveraging Repertoire’s single-cell screening platform to identify high-potential targets.