Popular Eli Lilly weight-loss drug Zepbound can be covered by Medicare plans to treat sleep apnea after it received Food and Drug Administration approval last month.

It opens the door for broader coverage and access to Zepbound, which is not currently covered by Medicare and many other insurance plans for weight loss.

Medicare now covers Eli Lilly's Zepbound for obstructive sleep apnea, FDA-approved for obesity and sleep apnea treatment, reducing apnea events by 62.8%.

According to BMO Capital Markets, Medicare coverage of Lilly’s Zepbound opens the door to using secondary indications to secure CMS coverage for obesity drugs.

Both Novo Nordisk and Eli Lilly are studying their weight loss drugs to treat fatty liver disease, chronic kidney disease, sleep apnea and more. To be covered, these drugs would need to have late-stage trial results and then seek FDA approval for these uses.

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Eli Lilly's Zepbound is set to dominate the global obesity market, offering new hope with its groundbreaking treatment for weight management.

Terence Flynn, Biotech Analyst at Morgan Stanley, discusses Eli Lilly's recent stock boost and its designation as Morgan Stanley's top pick for 2025. He highlights the robust growth potential of Eli Lilly's drug Zepbound,