hey all welcome to share Trek this is Raj here friends today we're going to talk about zeep bound which is a prescription weight loss medicine from ili and there's been some news about uh this uh therapy and the new pricing from ili that seems to have a bit of implications for Al immune I hold Al immune shares so I thought I would go and have a look at this news article and see how it might impact and I want to share my thoughts with you of course this is not Financial advice this is just my personal opinion so please do your due diligence before you buy or sell Al immune that said let's get started welcome back friends first I would like to take you to a CNBC article uh about Eli Lily and their announcement regarding a new pricing plan for Zeb bound to make it more affordable Zeb bound is a weight loss medicine I'm going to talk more in detail about what Zeb bound is and how it works and what it used to cause and what it costs now but first let us look at the press release and and then we'll take it from there so this is the press release that I saw in CNBC it says Eli releases new form of weight loss drug Z bone for half the price to boost access and supply of course there's a video out here now I'm going to briefly describe uh the key points that I've taken away from this um entire article so that that can save you some time so first let me explain what Zep bond is uh Zep bond is uh actually a compound called as peptide and it's a prescription weight loss medicine it contains uh tepati the same active ingredient as the type 2 diabetes medicine monjaro the FDA approved Zep bond in 2023 to help adult uh individuals with excess weight or obesity lose weight and keep it off especially those who have other health conditions affected by excess weight such as um say high blood pressure uh type 2 diabetes and heart diseases so Zep bound is usually injected once weekly along with eating fewer calories and being more physically active and it becomes uh a a plan to keep the weight off uh it comes in a ready to use pen for home injections and Zep Bond's price varies on factors such as dosage strength and frequency of administration uh insurance coverage of the individual but generally without insurance Zep Bond cost between 500 to, 1500 while with insurance it costs between $10 to $300 per month and here is my take from the article that I showed you from CNBC so Point number one Eli Li released a new form of its weight loss drug Zep bound at roughly half its usual monthly list price to reach uninsured patients including those on Medicare and this could create a new segment of market for the company not all of them may take up Zep Bond but those who can afford the newly reduced price will definitely uh try to take advantage of this the new new form includes 2.5 MGR and 5 mg single dose vs PR priced at 3.99 and 5.49 per month respectively available through Eli direct to Consumer website Ze Bond and other weight loss drugs like NOA nisk Veo typically cost around 1,000 per month before insurance and rebates so now woi also will have to do some price adjustment in order to maintain its uh market share patients need to draw and inject the medicine manually from the single dose vials unlike the current auto injector pens and the vials are easier to manufacture which expands uh Supply capacity in the US and lower price points benefit self-paying patients especially those on Medicare or employer sponsored plans that don't cover obesity treatment and patients can purchase vials through Lily direct direct to Consumer platform which offer syringes needles and instructional materials for proper Administration more or less like administering insulin that's what diabetics patients have been doing for quite a while now Lily direct partners with gift Health a third party digital Pharmacy to process prescriptions and deliver the vials the initiative aims uh to protect consumers from quter fate or unsafe versions of the drug by ensuring they reive genuine FDA approved Z bound Eli and Nova nisk are addressing illicit versions of their weight loss drugs and diabetes drugs by suing entities that market and sell unauthorized copies that's a separate problem that they are facing and because these companies got huge resources they can fight it appropriately the FDA allows compounding pharmacies to make drug copies during shortages but IL Ze Bond and monjaro remain under patent protection and are not supplied to outside groups and the release of a more affordable version of Eli Z Bond could have several impacts on the share price of alt immune especially as it approaches the final stage of approval for its own weight loss drug pmid and I have been speaking about pmid a lot in this channel I'm very bullish about that uh weight loss drug basically because it's um as compared to the other competitors it preserves muscle mass and the muscle mass loss is not that high uh so it's significantly less than the other Alternatives and I think that's a very big Advantage however Eli Li's aggressive pricing strategy and the expansion of Z bonds availability could intensify competi in the weight loss drug Market because then Veo will also follow suit and overall the pricing will come down and there'll be more choice for the consumer so it's good for the consumer but for Al immune price I think it's going to be a stress factor if zebone becomes uh more accessible and captures a significant market share it may potentially reduce the market size for pmid which could negatively affect Al immune stock price and investors might perceive the success of pricing strategies of established players like IL as a Potential Threat to newer entrance like alt immune this could create downward price pressure on altimmune's share price if investors become concerned about its ability to compete effectively and then altimmune may need to consider its own pricing strategies uh and uh reconsider how they are going to price their uh therapy in light of Zep bounds lower cost and that could in turn uh impact their forward guidance if pmit di is priced higher it might struggle to gain traction or market share particularly among price sensitive consumers this anticipation could lead to a decrease in Al immune stock value and on the other hand if perit di offers significant advantage over existing drugs such as better efficacy fewer uh side effects and more convenient Administration method and especially out here I'm putting my focus on reduced muscle mass loss and I think investors might still view uh altimmune favorably however this will depend on how well permitted permited uh different iate itself in a crowded Market in summary while Eli actions could introduce challenges for aimmune the ultimate impact of its share price will hinge on Pit's um competitive positioning and investor perceptions of its Market potential relative to established treatments like zeep bound and you are seeing my own thought process right now which is re-evaluating the relative position and relative Market potential of pit as compared to Veo and uh Ze bound so that's what all the investors are likely to do and I'm thinking that um uh Al immune is definitely going to face a little bit of uh downward pricing pressure because of all these uh news items the next shoe to drop will be announcement from vovi of uh a new uh pricing regime for for the less uh uh insurance covered Patient Group uh in order to compete with Z bound and while those things play out we still have Al immune trying to get FDA approval so there's a lot of disadvantage for Al immune right now but one huge positive is the reduced muscle mass loss uh and I think uh the utility of that is going to be tested significantly as price continues to fall down so with that my friends I would like to bring this video to an end and I would like to have your feedback have you invested in aimmune and what do you think about the latest news that we have from Eli do you agree with my analysis if not please let me have your contrary thesis I'm always uh interested in knowing what you think about it at the end of the day we are a retail Channel I'm a retail investor I don't claim to know everything I'm just openly sharing my thoughts and I invite your feedback as well thanks and have a great day bye for now [Music] [Music]