Eli Lilly shakes up the market with its Direct-to-Consumer strategy

Healthcare has changed and consumers are now in the driver seat, demanding greater access to treatments at a lower price point. DTC healthcare–accessing medical treatments online through trusted and cost-efficient sources–has surged in the past few years. Eli Lilly has read this trend plainly, and have responded with a new form of distribution that will innovate the pharmaceutical industry.

The legacy pharmaceutical company announced the release of a new form of its weight management medication, Zepbound, which will be available directly through its direct-to-consumer website. Zepbound, like Wegovy and Ozempic, is a GLP-1 injectable that aids in weight loss and treats type-2 diabetes by reducing appetite and regulating blood sugar. In the US, these medications have been in high demand. Eli Lilly's DTC Zepbound promises to expand access by increasing supply and maintaining affordability.

This new form of Zepbound distribution shakes up the weight management medication market by offering a cheaper, direct-to-consumer option that's about half the price of competitors. Eli Lilly aims to attract consumers who might want to switch medications or whose insurance doesn't cover Zepbound. By making it more cost-effective and easier to order online, Eli Lilly hopes to reach more people who need weight loss and type-2 diabetes treatments, ensuring they can access these medications safely.

For Eli Lilly, the proof is in the numbers

According to a recent study by the Alliance for Safe Online Pharmacies (ASOP Global) Foundation, 52% of American consumers have purchased medications from an online pharmacy, reflecting a significant rise from previous years and outpacing the rate of new prescription drug usage. The trend is further underscored by the fact that 71% of respondents have turned to online pharmacies within the last 1-3 years, with 85% of these individuals now regularly using these platforms for their medications.

The increasing demand for convenience and cost-savings, coupled with recent drug shortages, is propelling this shift. 60% of online pharmacy users are open to purchasing from sources not approved by U.S. regulators if it enhances convenience, 55% for greater cost-savings, and 47% for access to otherwise unavailable medications. These statistics highlight the growing reliance on and expectation for effective, accessible online medical treatment.

Eli Lilly is one of a handful of major pharmaceutical health suppliers that have taken a proactive approach to securing streamlined options for patients. Mark Cuban's DTC healthcare venture, Cost Plus Drug Company, is also making waves in the generic drug pricing space, nearly doubling its range of available medications in just the past month. Amazon Pharmacy also focuses on delivering medications directly to consumer's doors, and will also be offering Zepbound within its suite of medications – a partnership driven by the surge in demand for Zepbound and other weight-loss medications.

How DTC healthcare impacts pharma advertising

Eli Lilly's transition to a direct-to-consumer distribution model marks a significant change in how patients access medications, offering patients enhanced convenience and more direct pathways to obtaining their treatments. However, this change can also raise important concerns that could affect the broader healthcare system.

Patient Journey Efficacy: With increased direct access to medications, there is a risk of inundating consumers with complex health information across different channels. Pharma brands should leverage cross-channel data to develop comprehensive audience profiles, enabling them to reach patients effectively throughout their entire healthcare journey. By focusing on delivering clear, concise, and helpful content, these brands can guide patients through the process of using this new distribution channel safely and seamlessly.
HCP and Patient Aligned Advertising: DTC distribution may disrupt traditional channels and relationships with healthcare providers, pharmacies, and patients.
As traditional channels and relationships with HCPs and pharmacies evolve, pharma brands, like Eli Lily must align healthcare provider (HCP) and patient journeys to ensure a smooth transition to direct-to-consumer (DTC) distribution. Well-developed marketing strategies will play a key role in this transition, helping to communicate changes and build confidence among doctors. By fostering strong, supportive relationships with HCPs, pharma brands can ensure that doctors remain confident in the new distribution model, even when pharmacists are not involved in dispensing. This approach will help integrate DTC distribution into the healthcare system, enhancing overall efficiency and maintaining trust across all stakeholders.
Patient Privacy: Pharmaceutical brands must address the potential for increased scrutiny regarding data privacy. As Eli Lilly now collects and handles sensitive consumer information directly, the industry needs to set robust data protection measures that reassure patients that their personal and private health information remains secure.

Navigating these challenges thoughtfully can help Eli Lilly and other pharmaceutical brands benefit from DTC distribution while addressing potential issues and maintaining a strong, trustworthy brand presence in the evolving healthcare landscape, all while keeping the patient’s well-being at the forefront.

Redefining a patient’s journey to healthcare

While a prescription from a healthcare provider remains essential, Eli Lilly’s approach allows for direct fulfillment, offering substantial savings, convenience, and accessibility. With consumers increasingly seeking convenience and value, this model could reshape how medications are marketed and sold.

Direct-to-consumer sales may become a staple in the pharmaceutical industry, driven by a need for improved efficiencies and consumer engagement. Pharmaceutical companies must now focus on adapting marketing strategies to maximize this new model’s success. A media partner like MiQ, with expertise in healthcare and commerce, can provide the intelligence needed to identify the right audiences, optimize brand marketing efforts, and enhance overall patient and provider reach across their separate journeys.

Sources:

Eli Lilly shakes up the market with its Direct-to-Consumer strategy

For Eli Lilly, the proof is in the numbers

How DTC healthcare impacts pharma advertising

Redefining a patient’s journey to healthcare

More from MiQ blog