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Will CVS Health's Formulary Move Boost Its Weight Management Program?
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Key Takeaways
CVS adds Wegovy to Caremark formularies while removing Zepbound to balance costs and access.
The move supports CVS' Weight Management program, pairing GLP-1 with lifestyle coaching.
CVS shares are up 48.8% YTD, trading at a forward P/S of 0.21X versus the industry average of 0.40X.
For CVS Health (CVS - Free Report) , the key to building customer trust is to enhance access to life-changing medications and also make them affordable. Beginning July 1, the company’s Pharmacy Benefit Manager (“PBM”), CVS Caremark, will list Wegovy — the flagship GLP-1-based weight loss medication from Novo Nordisk (NVO - Free Report) — on its largest commercial template formularies. Encouragingly, CVS plans to pair these medications with additional lifestyle clinical support as part of its Weight Management program.
In parallel, the company is removing EliLilly’s (LLY - Free Report) GLP-1 medication, Zepbound, from its coverage, reflecting a broader strategy to reasonably balance access and affordability amid soaring demand for these drugs. Through the NVO partnership, CVS aims to significantly expand Wegovy’s reach at a more affordable price. The move mirrors its past success in driving the adoption of Humira biosimilars, including Cordavis — its branded version — which now holds the largest U.S. market share.
The highly impactful GLP-1 medications were initially launched at exorbitant prices, forcing many to exclude them from their benefits. PBMs like CVS Caremark negotiate drug prices on behalf of health plans and often receive manufacturer rebates in return for formulary placements of medications. That said, the combination of GLP-1 medications and the wrap-around support through its Weight Management program leads to better outcomes, even greater than the pre-program results. Recent compelling data revealed that Caremark clients using the program spent up to 26% less on GLP-1 medications for weight loss, with 92% of participating plan members expressing satisfaction after six months in the program.
Updates From CVS Peers UNH and ELV
Another leading PBM, UnitedHealth Group’s (UNH - Free Report) Optum Rx, is set to drop coverage for these GLP-1-based weight loss medications — Saxenda, Wegovy and Zepbound — effective July 1. In a recent update, Optum Rx noted that it is eliminating up to 25% of reauthorizations, which is equal to more than 10% of overall pharmacy prior authorizations, to make prescription drugs more affordable and the pharmacy experience simpler for consumers with chronic conditions.
Elevance Health (ELV - Free Report) -owned PBM, Carelon Rx, also has a digital weight management program supporting members on their weight loss journeys, including those who utilize GLP-1 medications. Growth in CarelonRx product revenues was a key contributor to Elevance Health’s 15% operating revenue growth in the first quarter of 2025.
CVS Stock Outpaces Peers, P/S Remains Attractive
Year to date, CVS Health shares have rallied 48.8% against the industry’s 1.3% dip, ELV’s 1% gain and a steep 40.7% loss for UNH.
Image Source: Zacks Investment Research
CVS shares are trading at a forward three-year price-to-sales of 0.21X, lower than the industry average of 0.40X. The stock carries a Value Score of A.
Image Source: Zacks Investment Research
CVS Stock Estimate Trend
The consensus estimate for CVS Health’s 2025 earnings has been trending upward. However, the same for 2026 remains mixed.
Image: Bigstock
Will CVS Health's Formulary Move Boost Its Weight Management Program?
Key Takeaways
For CVS Health (CVS - Free Report) , the key to building customer trust is to enhance access to life-changing medications and also make them affordable. Beginning July 1, the company’s Pharmacy Benefit Manager (“PBM”), CVS Caremark, will list Wegovy — the flagship GLP-1-based weight loss medication from Novo Nordisk (NVO - Free Report) — on its largest commercial template formularies. Encouragingly, CVS plans to pair these medications with additional lifestyle clinical support as part of its Weight Management program.
In parallel, the company is removing Eli Lilly’s (LLY - Free Report) GLP-1 medication, Zepbound, from its coverage, reflecting a broader strategy to reasonably balance access and affordability amid soaring demand for these drugs. Through the NVO partnership, CVS aims to significantly expand Wegovy’s reach at a more affordable price. The move mirrors its past success in driving the adoption of Humira biosimilars, including Cordavis — its branded version — which now holds the largest U.S. market share.
The highly impactful GLP-1 medications were initially launched at exorbitant prices, forcing many to exclude them from their benefits. PBMs like CVS Caremark negotiate drug prices on behalf of health plans and often receive manufacturer rebates in return for formulary placements of medications. That said, the combination of GLP-1 medications and the wrap-around support through its Weight Management program leads to better outcomes, even greater than the pre-program results. Recent compelling data revealed that Caremark clients using the program spent up to 26% less on GLP-1 medications for weight loss, with 92% of participating plan members expressing satisfaction after six months in the program.
Updates From CVS Peers UNH and ELV
Another leading PBM, UnitedHealth Group’s (UNH - Free Report) Optum Rx, is set to drop coverage for these GLP-1-based weight loss medications — Saxenda, Wegovy and Zepbound — effective July 1. In a recent update, Optum Rx noted that it is eliminating up to 25% of reauthorizations, which is equal to more than 10% of overall pharmacy prior authorizations, to make prescription drugs more affordable and the pharmacy experience simpler for consumers with chronic conditions.
Elevance Health (ELV - Free Report) -owned PBM, Carelon Rx, also has a digital weight management program supporting members on their weight loss journeys, including those who utilize GLP-1 medications. Growth in CarelonRx product revenues was a key contributor to Elevance Health’s 15% operating revenue growth in the first quarter of 2025.
CVS Stock Outpaces Peers, P/S Remains Attractive
Year to date, CVS Health shares have rallied 48.8% against the industry’s 1.3% dip, ELV’s 1% gain and a steep 40.7% loss for UNH.
Image Source: Zacks Investment Research
CVS shares are trading at a forward three-year price-to-sales of 0.21X, lower than the industry average of 0.40X. The stock carries a Value Score of A.
Image Source: Zacks Investment Research
CVS Stock Estimate Trend
The consensus estimate for CVS Health’s 2025 earnings has been trending upward. However, the same for 2026 remains mixed.
Image Source: Zacks Investment Research
CVS stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.