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Key Takeaways
- Eli Lilly and Amazon announced a partnership Wednesday that will allow certain Eli Lilly prescription medications to be delivered through Amazon’s digital pharmacy.
- Amazon is the second online pharmacy partner for Eli Lilly’s direct-to-consumer service LillyDirect.
- The partnership comes as demand for weight-loss drugs such as Eli Lilly’s Zepbound, which received FDA approval in November, has skyrocketed in recent years.
- Prescription medications that treat diabetes, migraines, and obesity, among others, will be eligible to be shipped through Amazon Pharmacy.
Eli Lilly (LLY) and Amazon (AMZN) announced a partnership Wednesday that will allow Eli Lilly prescription drugs to be shipped through Amazon’s online pharmacy, as Eli Lilly looks to expand its direct-to-consumer (DTC) business and Amazon expands its reach into the healthcare industry.
Select medications from the drugmaker’s LillyDirect website will be eligible to be filled through Amazon’s online pharmacy, the companies announced Wednesday. Amazon Pharmacy is the second online pharmacy Eli Lilly has partnered with for its DTC operations, along with digital pharmacy Truepill, as the drugmaker looks to lower costs for consumers amid increasing pressure from President Joe Biden and other politicians to do so.
Eli Lilly’s weight-loss drug Zepbound has helped boost its stock price since it received Food and Drug Administration (FDA) approval in November, as a number of pharmaceutical companies have entered the space with the booming popularity of weight-loss drugs such as Ozempic and Wegovy in recent years.
Amazon entered the healthcare space by acquiring online pharmacy PillPack in 2018, and further by launching Amazon Pharmacy in 2020. The retail giant has worked to expand its reach into healthcare by offering discounts on medications through its pharmacy to Amazon Prime members, allowing people to fill prescriptions without having to travel to a real pharmacy.
In the new partnership, select Eli Lilly drugs that treat diabetes, migraines, and obesity will be eligible for two-day free delivery from Amazon Pharmacy once they are prescribed by a physician through LillyDirect. The process can also be a mix of in-person and online, as customers can also have their regular doctor send prescriptions to LillyDirect, which will deliver the medication via either Amazon or Truepill.
Eli Lilly has not released data on how many users the LillyDirect site has, but said it plans to expand the scope of medications it offers and companies it partners with in the future, according to CNBC.
Amazon shares were up 0.7%, while Eli Lilly shares were up 0.5% at around 10:30 a.m. ET.