GLP-1 Prescriptions for Weight Loss Soar Amid Supply Challenges and Cost Concerns

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 shortages and high prices. This trend is reshaping the obesity treatment landscape and creating significant opportunities for drug manufacturers.

Rapid Growth in GLP-1 Prescriptions

According to a new 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. The demand for these medications specifically for weight loss is even more striking when excluding patients with Type 2 diabetes. For obese or overweight adults without diabetes, GLP-1 prescriptions skyrocketed by 1,961% between 2019 and 2024.

Currently, three GLP-1 drugs are FDA-approved for weight management: Novo Nordisk's Saxenda and Wegovy, and Eli Lilly's Zepbound. These medications have quickly become blockbusters, with Novo Nordisk reporting $9.9 billion in combined sales from Wegovy and Saxenda in 2024, while Eli Lilly earned $4.9 billion from Zepbound in its first full year on the market.

Supply Challenges and Market Competition

Despite their popularity, GLP-1 manufacturers have faced significant challenges in meeting demand. Supply shortages in 2024 temporarily allowed telehealth companies and compounding pharmacies to offer alternative formulations, cutting into expected profits for major pharmaceutical companies. Although the shortages have since been resolved, the brief period of competition led to leadership changes at Novo Nordisk and highlighted the need for robust supply chain management in this rapidly growing market.

Pricing Concerns and Access Issues

The high cost of GLP-1 medications remains a significant barrier to widespread adoption. Novo's Wegovy and Lilly's Zepbound carry list prices exceeding $1,000 per month for standard doses, raising concerns about the financial burden on payers and patients. As a result, fewer than one in five employer-sponsored plans covered GLP-1s for weight loss in 2024.

To address these concerns, drug manufacturers are partnering with pharmacy benefit managers to increase access and affordability. Recent agreements between Novo Nordisk, Eli Lilly, and Cigna's health services subsidiary aim to discount GLP-1s for employer and health plan clients while capping patient copays. Similarly, CVS Caremark has struck a deal with Novo to give Wegovy preferred access on its standard formulary.