Eli Lilly shares jumped 5.1% in morning trading as investors reacted to a pair of commercial and regulatory developments that expand access to the company’s GLP-1 obesity drugs. CVS Caremark said it will reinstate Zepbound on its standard commercial formularies as a preferred option beginning October 1, 2026, and will lift its new-to-market restriction on Foundayo, the company’s oral GLP-1, as of June 1. Those changes mean that all three of the largest U.S. pharmacy benefit managers will now include Lilly’s complete obesity medicine portfolio on their formularies.
The reinstatement removes a notable commercial obstacle that had pressured the stock since CVS Caremark removed Zepbound from its formularies last July while continuing to reimburse Novo Nordisk’s Wegovy after negotiating a more favorable price. Under the new arrangement, both Lilly’s and Novo Nordisk’s GLP-1 treatments will be listed as co-preferred options on CVS Caremark’s standard commercial formulary template, which the company estimates covers roughly 25 million to 30 million Americans.
Market response was compounded by an analyst move: Bank of America raised its price target for Eli Lilly to $1,251 from $1,133 and kept a Buy rating on the shares. Internationally, France announced it will become the first European Union country to reimburse obesity medications, including Eli Lilly’s Mounjaro, with reimbursement scheduled to begin in mid-June 2026. That decision opens a reimbursed market for Lilly’s leading GLP-1 franchise in Europe.
At the same time, broader U.S. equity markets were modestly higher, with the S&P 500 up about 0.3% and the NASDAQ rising roughly 0.2%. April personal consumption expenditures inflation printed at 3.8% year-over-year, in line with expectations, which avoided a macro shock that could have hurt high-multiple growth stocks.
The combined commercial and geographic developments have shifted the market’s expectations for Lilly’s obesity franchise. Intraday, shares reached a new 52-week high of $1,140, and the stock is on pace for its strongest month of 2026, up about 14% so far in May. The move reflects investor anticipation of stronger revenue potential for Zepbound and Foundayo heading into the second half of 2026, alongside ongoing programmatic expansion into areas beyond obesity.
Commercial implications
- Reinstatement by a major PBM puts Lilly on equal footing with Novo Nordisk on a significant set of employer and commercial plans.
- Removal of the new-to-market restriction for Foundayo accelerates potential uptake by making the oral GLP-1 more immediately accessible to covered patients.
- France’s decision to reimburse obesity medications creates an early European reimbursed market for Lilly’s GLP-1 franchise starting mid-June 2026.
Market context
The convergence of the CVS Caremark formulary change, a raised price target from Bank of America, and early European reimbursement created a constructive environment for Lilly’s shares. Because the S&P 500 and NASDAQ were only modestly higher and inflation data matched expectations, the headline move in Eli Lilly stock was driven primarily by the company-specific commercial and regulatory developments.
Investors appear to be pricing in an improved revenue trajectory for Lilly’s obesity medicines as key coverage hurdles are removed and new reimbursed markets open.