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.

Eli Lilly’s obesity drug Zepbound is now covered by Medicare for sleep apnea treatment, expanding access to the costly medication. This comes after Zepbound’s FDA approval for a secondary use, allowing Medicare coverage.

Eli Lilly has asked to join in opposing a lawsuit brought by compounding pharmacies against the U.S. Food and Drug Administration over the agency's decision that Lilly's blockbuster weight-loss and diabetes drugs are no longer in short supply.

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.

El Lilly’s (LLY) blockbuster weight-loss drug Zepbound is now eligible for Medicare coverage. The news could significantly expand access to the popular, yet costly treatment.