A new class of weight-loss medications called GLP-1s is making a significant impact on people with obesity, but their success has been hampered by several issues. Insurance companies are hesitant to cover these medications due to high costs, which can reach $16,000 annually. Additionally, ongoing shortages have led to the emergence of cheaper copycats.
The current market leaders, Novo Nordisk’s Wegovy and Eli Lilly & Co.’s Zepbound, are both administered as weekly injections and contain modified versions of existing diabetes medications. Despite struggling to meet demand, these companies have seen significant financial gains from their success. However, another factor has cast a shadow on the industry: Robert F. Kennedy Jr., the incoming head of the US Department of Health and Human Services, has expressed reservations about the pharmaceutical sector and its new weight-loss medication category.
The high stock prices of pharma companies have created unrealistic expectations for future developments in this area. It remains to be seen whether these companies can deliver on their promises and produce even more effective weight loss medications.
Source: https://www.bloomberg.com/news/articles/2025-01-02/weight-loss-drugs-what-to-know-about-glp-1-obesity-shot-availability-coverage