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Investing.com -- Cigna’s Evernorth has introduced a new pharmacy benefit that caps out-of-pocket costs for GLP-1 weight loss medications at $200 per month, in a move analysts say is more favorable for Eli Lilly (NYSE:LLY) than rival models.

Announced late Wednesday, the offering covers Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy. It is expected to provide lower costs for patients and employers, as well as other health plan businesses. 

Through direct negotiations with the drugmakers, Evernorth says patients can save up to $3,600 annually versus buying medications through consumer-facing channels.

“This is what Express Scripts (NASDAQ:ESRX) does better than anyone: save Americans money on their prescriptions while helping them achieve their health goals,” said Evernorth Care Management President Adam Kautzner.

Morgan Stanley (NYSE:MS) analysts said the benefit structure “deviates significantly” from CVS’s recently announced formulary arrangement with Novo. 

“It’s an open access agreement which is aligned with [Eli Lilly’s] contracting strategy,” the firm noted after speaking with Lilly investor relations. 

They state that Zepbound and Wegovy will be broadly accessible across Cigna’s managed lives through at least 2026.

Mizuho said the new deals between drugmakers and payers “help to reiterate” that newer entrants like Amgen (NASDAQ:AMGN), Pfizer (NYSE:PFE) and Roche will struggle to generate returns. 

“Pricing [is] already getting squeezed… this is, though, excellent for patients,” analysts wrote.

Despite the discounting, Morgan Stanley believes Eli Lilly expects the pricing impact to remain within prior guidance. “There are no changes to the company’s 2025 portfolio pricing guidance of mid-to-high single digit price decline,” the bank wrote. 

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