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.

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%.

The FDA has approved Zepbound (tirzepatide) for the treatment of moderate to severe obstructive sleep apnea in adults with obesity.

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.

The Food and Drug Administration approved Eli Lilly’s weight-loss drug Zepbound on Dec. 27 to treat sleep apnea, a common but potentially serious sleep-related breathing disorder, making it the first medication for certain patients with the condition.

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,