Ro to Offer Zepbound Vials of Weight Loss Drug Working with Eli Lilly

Direct-to-consumer healthcare startup Ro said Wednesday that its platform will now offer more affordable single-dose vials of the weight-loss drug Zepbound through a new partnership with Eli Lillywhich aims to streamline access to popular treatment.

Ro said it will offer a “complete end-to-end” experience on a single platform and app, allowing eligible patients to receive a diagnosis and prescription for Zepbound and receive vials of the medication delivered to their homes. This is made possible through a unique integration with Eli Lilly's direct-to-consumer website, LillyDirect, which already offers home delivery of Zepbound vials through a third-party digital pharmacy, Gifthealth.

Gifthealth will dispense the vials to patients receiving Zepbound prescriptions through a Ro-affiliated provider.

Zepbound vials are a cash-only product offered through LillyDirect, meaning patients pay for it themselves in cash at a lower cost than the self-injector form of the medication. The vials have the “most affordable” price of a brand-name GLP-1 drug before insurance, according to Ro. Demand for GLP-1, a class of drugs that mimic gut hormones to reduce appetite and regulate blood sugar, has skyrocketed in the past two years.

“Patients typically have to go to several places to get their Lilly medication, like the doctor's office and then a pharmacy,” Ro co-founder and CEO Zachariah Reitano told CNBC in an interview. “This integration really creates a seamless experience for the patient where they don't have to go anywhere else. They can access doctors, labs, and a pharmacy that will give them access to Zepbound vials, all in one place.”

Ro runs a weight loss program that already prescribes Zepbound in a single-dose auto-injector pen, which patients can inject directly under the skin with the click of a button. But that form of the drug is much more expensive than vials, costing about $1,000 a month before insurance.

Zepbound's 2.5-milligram and 5-milligram single-dose vials cost $399 per month and $549 per month before insurance, respectively, making them more affordable for those without insurance coverage for the medication. Eli Lilly began offering those vials through LillyDirect in August.

“Whether you're covered by insurance or you want the most affordable brand-name GLP-1 that you pay for in cash, which are the Zepbound vials, you can get them all if you come to Ro,” Reitano said, noting that the company helps eligible patients determine which form of medication is best for them based on their insurance.

He acknowledged that roughly $400 to $500 a month for Zepbound is “still out of reach for many, but it's now much more within reach than” $1,000 or more.

The popularity of expensive treatments like Zepbound and NordiskThe Wegovy weight loss shot has caused widespread shortages in the U.S. That problem has since eased after Eli Lilly and Nordisk rushed to increase manufacturing capacity for the drugs.

Still, cheaper compounded versions of GLP-1 have gained ground amid limited supply of brand-name drugs. Eli Lilly is working to expand access to the Zepbound brand in what appears to be an attempt to crack down on compounded versions of the drug.

Patrik Jonsson, president of cardiometabolic health at Eli Lilly, said in a statement Tuesday that the goal of the new integration is to “break down barriers and provide patients with safe and effective options they can trust.”

The FDA is currently reconsidering its decision to remove Zepbound from its drug shortage list following a lawsuit from a trade association representing compounding pharmacies. Removing Zepbound from that shortage list will essentially prevent compounding pharmacies from producing customized versions of the drug.

If that ends up being the case, Reitano said Ro will “follow all applicable laws and guidelines” from the FDA and will also “fight to ensure our patients have access to the most effective and most affordable products.”