The Prof G Pod with Scott Galloway

Snapshot · The Prof G Pod with Scott Galloway

Why People Are Losing Faith in Healthcare

Explore episode Jun 4, 2026

Where this was said

Pricing, Access, and the LillyDirect Model

At 17:08 · chapter starts 16:10

The pricing question is the sharpest edge of the conversation. Galloway frames it as a contradiction: Lilly has a fiduciary duty to shareholders to maintain pricing power, but the people who need these drugs most — lower-income, obese Americans — are least likely to afford them. Ricks reframes the economics: unlike most specialty drugs where demand is inelastic, GLP-1 demand is highly elastic — drop the price and volume surges. So lowering the price actually serves shareholders, not just patients. He details LillyDirect, a direct-to-consumer channel that bypasses pharmacy benefit managers and lets individuals buy at institutional prices — Zepbound is now $399/month, down 60% since launch. The new oral drug Foundeo starts at $159. Ricks then describes the Mississippi Medicaid deal — a state where 78–79% of adults are obese and Medicaid enrollment is the nation's highest — as a proof point of what systemic change can look like. And starting July 1, all 70 million Medicare seniors can access Lilly's obesity drug for $50/month. The final challenge: trust. Because pharma has historically been extractive on pricing, Ricks admits there's a genuine trust gap to overcome.

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