GLP-1 Prescriptions for Weight Loss Soar Amid Market Challenges and Opportunities

The pharmaceutical industry is witnessing a dramatic surge in the adoption of GLP-1 (glucagon-like peptide-1) drugs for weight loss, despite recent supply challenges and high costs. This trend is reshaping the obesity treatment landscape and creating significant opportunities for drug manufacturers.

Unprecedented Growth in GLP-1 Prescriptions

According to a comprehensive analysis by nonprofit Fair Health, the percentage of overweight or obese adults prescribed GLP-1 drugs jumped from 0.3% in 2019 to 2.05% in 2024, representing an almost sevenfold increase. This growth is even more pronounced when excluding patients with Type 2 diabetes, with prescriptions for non-diabetic obese or overweight adults skyrocketing by 1,961% during the same period.

The demand for GLP-1s has created a windfall for pharmaceutical giants Novo Nordisk and Eli Lilly. In 2024, Novo Nordisk reported $9.9 billion in sales from its weight loss drugs Wegovy and Saxenda, while Eli Lilly earned $4.9 billion from Zepbound, which was in its first full year on the market for weight management.

Market Challenges and Industry Response

Despite their popularity, GLP-1 drugs face significant hurdles. High list prices, exceeding $1,000 per month for standard doses, have raised concerns about the financial burden on payers. As a result, fewer than one in five employer-sponsored plans covered GLP-1s for weight loss in 2024.

To address these challenges, manufacturers are forging strategic partnerships with pharmacy benefit managers. Novo Nordisk and Eli Lilly recently partnered with Cigna's health services subsidiary to offer discounts and cap patient copays. Similarly, Novo Nordisk secured preferred access for Wegovy on CVS Caremark's standard formulary.

The industry also faced supply shortages in 2024, which temporarily allowed telehealth companies and compounding pharmacies to sell alternative medications. While these shortages have been resolved, they impacted projected profits and led to leadership changes at Novo Nordisk.

Political and Regulatory Landscape

The obesity treatment market is gaining increased attention from policymakers. HHS Secretary Robert F. Kennedy Jr.'s "Make America Healthy Again" movement has criticized the pharmaceutical industry's approach to obesity treatment, advocating for lifestyle and dietary changes instead.

In a significant policy decision, the Trump administration declined to allow Medicare coverage for obesity drugs in April 2025, citing potential costs of $40 billion over a decade. However, under the Inflation Reduction Act, Medicare is currently negotiating lower prices for Novo Nordisk's Wegovy and Ozempic, with new rates set to take effect in 2027.

As the obesity epidemic continues to grow, with over 40% of Americans affected and projections reaching 50% by 2030, the pharmaceutical industry's role in addressing this public health crisis remains a subject of intense debate and scrutiny.