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%.

According to BMO Capital Markets, Medicare coverage of Lilly’s Zepbound opens the door to using secondary indications to secure CMS coverage for obesity drugs.

Eli Lillys Zepbound set to eclipse Wegovy in U.S. obesity drug market Eli Lillys new obesity drug poised to challenge industry giants in upcoming market trends

Given Wegovy’s success and record-high sales, a wave of investments has gone into the obesity space over the last couple of years.