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No, They Are Not Discontinuing Zepbound: Supply, Coverage, and Compounding Concerns Explained

4 min read

Reports show Zepbound is not being discontinued by its manufacturer, Eli Lilly, despite circulating online rumors. Patient concerns stem from two distinct market shifts: the recent FDA-mandated end of compounded tirzepatide availability and decisions by some large insurance pharmacy benefit managers (PBMs), such as CVS Caremark, to alter Zepbound's formulary status.

Quick Summary

Zepbound is not being discontinued by its manufacturer, Eli Lilly. The confusion is driven by the FDA ending the availability of compounded tirzepatide and certain insurers removing Zepbound from preferred coverage lists.

Key Points

  • Zepbound Not Discontinued: Manufacturer Eli Lilly is not discontinuing Zepbound and is actively increasing production to meet high demand.

  • End of Compounding: The FDA ended the shortage status for tirzepatide in December 2024, mandating that compounding pharmacies stop producing cheaper, unapproved versions by March 2025.

  • Insurance Coverage Shifts: Major PBMs, including CVS Caremark, altered formularies effective July 1, 2025, removing Zepbound as a preferred option on some plans in favor of Wegovy.

  • Accessing Zepbound: Patients affected by the end of compounding or insurance changes must obtain an FDA-approved prescription for Zepbound and navigate manufacturer savings programs or insurance appeals.

  • Supply Improvement: Eli Lilly has expanded manufacturing and introduced new options, such as lower-cost vials, to stabilize supply and improve access to the branded drug.

In This Article

The question, "Are they discontinuing Zepbound?", has become a prevalent concern for many patients relying on this popular weight-loss medication. The short and definitive answer is no, Zepbound is not being discontinued. In fact, manufacturer Eli Lilly is actively expanding its manufacturing capacity to meet sustained high demand. The widespread misinformation and patient anxiety stem from two major, recent developments in the pharmaceutical landscape.

The End of Compounded Tirzepatide

For a period spanning nearly two years, the FDA listed tirzepatide—the active ingredient in both Zepbound and the diabetes drug Mounjaro—on its drug shortage list. During this time, high demand outpaced Eli Lilly's production capacity, leading to inconsistent supply. Under federal regulations, this shortage status allowed compounding pharmacies to legally create and sell cheaper, compounded versions of tirzepatide.

The FDA's Decision and Rationale

In December 2024, the FDA officially declared the tirzepatide shortage resolved, determining that Eli Lilly had sufficiently increased its manufacturing to meet demand. With the shortage over, the legal basis for compounding pharmacies to produce unapproved copies ended. The FDA mandated that these pharmacies cease production by March 2025. This move aimed to ensure patient safety and push patients toward the FDA-approved, rigorously tested, and manufacturer-produced versions of the drug.

Impact on Patients and Compounders

This decision created a difficult situation for thousands of patients who relied on the more affordable, compounded versions of the medication. For many, compounded tirzepatide was the only financially viable option, as Zepbound's brand-name list price can exceed $1,000 per month without comprehensive insurance coverage. This change forced patients to navigate new and potentially expensive access points or risk discontinuing treatment altogether. This transition period was a significant source of the 'discontinuation' rumors, as access to compounded versions ceased.

Insurance Coverage Changes Affecting Zepbound

Concurrently, some major pharmacy benefits managers (PBMs) adjusted their formulary coverage for Zepbound, leading to additional patient confusion and access issues. A notable example involves CVS Caremark.

CVS Caremark's 2025 Formulary Update

Effective July 1, 2025, CVS Caremark announced changes to certain formularies, dropping Zepbound as a preferred obesity management medication in favor of its competitor, Wegovy (semaglutide). This decision, driven by cost-management strategies and negotiations with manufacturers, does not mean CVS is stopping the drug, but rather that it is prioritizing the use of one over the other. The shift forces many commercially insured patients with affected plans to:

  • Transition to Wegovy.
  • Seek a formulary exception for continued Zepbound coverage, which typically requires a demonstrated failure or intolerance to Wegovy.
  • Pay a significantly higher out-of-pocket cost for Zepbound, sometimes the full cash price.

Implications of PBM Decisions

These PBM-driven coverage changes can severely impact patient access and affordability. They often require patients to engage in complicated prior authorization processes or switch effective medications, which can be disruptive to their treatment plan. The financial burden can be a major barrier for patients, reinforcing the false narrative that the medication is no longer available.

Eli Lilly's Response to Access and Supply Issues

In response to both demand challenges and access barriers, Eli Lilly has taken steps to support patients and expand supply.

  • Manufacturing Expansion: The company has invested billions to increase its global manufacturing capacity, opening new facilities and expanding existing ones to produce more tirzepatide.
  • LillyDirect Launch: In late 2023, Eli Lilly launched LillyDirect, a direct-to-consumer digital service that allows patients to get Lilly medications, including Zepbound, delivered directly to their door. This offers a simplified channel, potentially bypassing some PBM hurdles.
  • Vial Option: In 2024, Eli Lilly introduced Zepbound in single-dose vials, providing a lower-cost option for patients who pay out-of-pocket and offering an alternative supply format that helps mitigate potential pen-injector shortages.
  • Savings Programs: Eli Lilly continues to offer commercial savings card programs for eligible patients, helping to reduce the out-of-pocket costs of Zepbound.

Comparison of Branded vs. Compounded Tirzepatide

Feature FDA-Approved Zepbound (Branded Tirzepatide) Compounded Tirzepatide (Pre-March 2025)
Manufacturing Oversight Produced by Eli Lilly under strict FDA regulations. Prepared by compounding pharmacies with less stringent oversight.
FDA Approval Fully FDA-approved for chronic weight management and obstructive sleep apnea. Not FDA-approved; legally permitted only during a drug shortage.
Composition Standardized formulation, purity, and dosage across all batches. Potential for variation in ingredients, potency, and purity.
Source of Concern High cost and insurance coverage limitations. Lack of FDA approval, safety concerns, and recent production mandate halt.
Current Status Widely available via prescription with manufacturing capacity increasing. Production largely ended by March 2025 due to FDA ruling.

Conclusion

To reiterate, the rumor that they are discontinuing Zepbound is not accurate. The medication remains a core product for Eli Lilly and is fully available through official channels. The confusion stems from two separate but intertwined events: the regulatory end of compounded tirzepatide production and shifting insurance coverage preferences from major PBMs like CVS Caremark. Patients who relied on compounded drugs or are on affected insurance plans should consult their healthcare provider to discuss switching to the branded product, exploring financial assistance programs, or transitioning to an alternative FDA-approved medication like Wegovy. While these transitions can be frustrating, the branded drug remains a safe and effective option for those who need it. For more information on accessing the branded drug, visit the official LillyDirect website.(https://lillydirect.lilly.com/)

Frequently Asked Questions

No, Eli Lilly is not discontinuing Zepbound. In fact, the company is investing heavily in manufacturing to increase the supply of its branded tirzepatide medication.

The U.S. FDA officially declared the tirzepatide shortage over in December 2024. This action ended the legal basis for compounding pharmacies to make copies, with a final deadline for them to cease production in March 2025.

For some insurance plans administered by CVS Caremark, Zepbound is no longer a preferred medication for obesity management as of July 1, 2025. This means you may face higher costs or need to switch to a preferred alternative like Wegovy.

Branded Zepbound is a fully FDA-approved medication produced by Eli Lilly under strict quality control. Compounded tirzepatide was an unapproved copy made by compounding pharmacies, permitted only during the official drug shortage.

You should discuss options with your healthcare provider. You may need to try the preferred alternative (like Wegovy) first, seek a formulary exception, or investigate patient assistance programs and manufacturer savings cards to lower costs.

The FDA ended the allowance because Eli Lilly's increased production capacity resolved the official drug shortage. When an FDA-approved drug is fully available, the temporary permission for compounding pharmacies to make copies ends.

You can get FDA-approved Zepbound from a regular pharmacy with a prescription. Eli Lilly also offers the LillyDirect service for direct-to-consumer purchasing, and many patients rely on manufacturer savings cards to make the medication more affordable.

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Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice.