Lilly in talks with Germany over weight-loss drug coverage -Spiegel

By Ludwig Burger

FRANKFURT (Reuters) - Eli Lilly is in talks with the German government to try to end a ban on the public health system paying for weight-loss treatments, Spiegel magazine cited a company executive as saying on Monday.

Representatives of the U.S. maker of obesity and diabetes drugs are in a "good dialogue" with the federal government, Ilya Yuffa, president of Lilly International, was quoted as saying.

"I'm optimistic that we can come to an agreement," he said in an interview with Spiegel, also citing the company's commitment to make a large manufacturing investment in Germany.

Lilly's weekly injection Mounjaro was approved in the European Union late last year for weight loss in certain overweight or obese patients, when combined with a reduced-calorie diet and exercise.

Mounjaro has seen staggered European market introductions so far in Germany, Poland and Switzerland, with an introduction in Britain planned within the next few weeks.

The launch comes as soaring popularity of rival Novo Nordisk's Ozempic, approved as a diabetes drug, has overwhelmed the company's ability to boost production. The weekly shot is a lower-dose version of Novo's weight-loss drug Wegovy, which is also in exceedingly high demand.

European governments have so far taken a restrictive line on paying for the new weight-loss treatments out of concern for stretched health budgets, with Germany among the most stringent.

Germany's federal health ministry did not have an immediate comment.

Mounjaro has been shown in a trial to help obese participants to shed even more pounds than Wegovy.

Lilly is getting ready build its first plant in Germany in the western town of Alzey for 2.3 billion euros ($2.5 billion) to make diabetes and weight-loss drugs including Mounjaro.

(Reporting by Ludwig Burger, Editing by Matthias Williams and Mark Potter)