Aug 27 (Reuters) - Eli Lilly ( LLY ) said it has begun

selling vials of the smallest, starter dose of its popular

weight-loss drug Zepbound in the United States for $399 for a

month on its direct-to-consumer website to try to increase

supplies in the marketplace.

Zepbound is typically sold in auto-injector pens, but with

vials Lilly will eliminate that step and be able to get the drug

to patients more quickly.

The 2.5-milligram and 5-mg vials - the lowest doses of the

drug - will cost $399 and $549 for a month's supply on its

website LillyDirect, the company said. It has previously said

patients could get the drug in a pen through LillyDirect for as

little as $550.

Lilly said the prices were in line with its current offering

and a 50% discount to the list prices of rivals, which includes

Wegovy from Danish rival Novo Nordisk.

Lilly and Novo have been struggling to make enough of their

obesity medications to meet soaring demand but in the last

quarter, Lilly ramped up its manufacturing while Novo missed

expectations. The company raised its sales forecast for the year

by $3 billion.

Lilly's medicines are now listed as available by the U.S.

Food and Drug Administration, though they are not yet off the

FDA's official shortage list where they have been most of the

year.

Citi analyst Daniel Grosslight said the move would alleviate

the supply bottleneck around auto-injector pens. He said Lilly's

offering would take market share away from companies offering

medications produced by compounding pharmacies, which is allowed

in the U.S. when drugs are in shortage.

Shares of Hims and Hers Health ( HIMS ) fell 5.2% to $15.20

in premarket trading. The telehealth company offers compounded

versions of Novo's weight-loss drug.

The lowest dose of Novo's Wegovy - which is used to start

new patients - is still listed as in shortage.

Patrik Jonsson, Lilly's president of cardiometabolic health,

said in an interview that the launch of these vials will

significantly increase supplies of Zepbound in the U.S.

"We are very confident with both the auto-injectors and the

vials that we will be able to supply the needs in the U.S.

marketplace," he said, adding that a big chunk of patients do

not progress to higher doses of Zepbound than 5 mg during

treatment.

Around 86% of commercial healthcare plans cover obesity

drugs, according to Lilly. Patients not covered for weight loss,

such as those on the U.S. government's Medicare health plan for

older Americans, may otherwise have to pay more than $1,000 out

of pocket for a month's supply of Zepbound.

Lilly has already launched vials of the product in other

countries, including Australia, Canada and Poland, Jonsson said.