Eli Lilly's obesity drug Zepbound can now be covered by government-backed Medicare insurance plans for use in sleep apnea, broadening access to the blockbuster weight-loss treatment. The Wednesday statement from the Centers for Medicare & Medicaid Services comes after Zepbound in December became the first drug approved in the U.

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.

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.

Zepbound is not covered by Medicare or many other insurance plans as a treatment for weight loss. The injectable treatment costs about $1,000 a month without insurance.

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,