Nov 12 (Reuters) - Eli Lilly ( LLY ) is dropping CVS

Health's ( CVS ) drug benefit plan for its employees after the

healthcare conglomerate stopped covering the company's

weight-loss drug in favor of Novo Nordisk's rival

medication, Bloomberg News reported on Tuesday, citing people

familiar with the matter.

Beginning January 1, Lilly employees covered by the

company's medical plan will be automatically enrolled for

coverage through pharmacy benefit manager Rightway, according to

a document viewed by Bloomberg.

Eli Lilly ( LLY ) routinely reviews its benefit service providers

and Rightway offers "competitive fees and services aligned with

the best interests of our employees, retirees and their

families," the company told Reuters in an emailed response.

However, it did not directly address whether the shift

away from CVS was linked to the Zepbound coverage decision.

Rightway did not immediately respond to Reuters' requests

for comment. Reuters could not immediately verify the Bloomberg

report linking the two.

Rightway is a pharmacy benefit manager that works on a fee

basis. Last year, Tyson Foods ( TSN ) also dropped CVS as its

pharmacy benefit manager and replaced it with Rightway.

CVS had said in May its Caremark pharmacy benefit

management unit had decided to drop Lilly's weight-loss drug

Zepbound as a preferred product from its reimbursement list from

July 1. CVS retained Novo Nordisk's Wegovy after negotiating

more favorable pricing for the medicine.

CVS spokesperson David Whitrap told Reuters that while the

company won't comment on specific clients, Caremark's overall

client retention remains in the high 90% range year after year.

The pharmacy benefit manager offers options that cover both

Zepbound and Wegovy, but "this option is costlier for plan

sponsors than our standard commercial formulary that excludes

Zepbound," Whitrap added.

"Our move earlier this year to negotiate Lilly and Novo

against one another drove significant savings for our clients,"

Whitrap added.