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

The pharmaceutical industry is witnessing a significant surge in the adoption of glucagon-like peptide-1 (GLP-1) agonists for weight management, despite recent supply shortages and high costs. A new report from nonprofit Fair Health reveals a dramatic increase in GLP-1 prescriptions, highlighting the growing demand for these medications and the challenges faced by manufacturers and payers.

Rapid Growth in GLP-1 Prescriptions

According to Fair Health's analysis of commercial claims data, 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 trend is even more pronounced when excluding patients with Type 2 diabetes, with a staggering 1,961% increase in GLP-1 prescriptions for weight loss among non-diabetic overweight or obese adults during the same period.

The surge in demand has led to significant financial gains for pharmaceutical companies. Novo Nordisk reported $9.9 billion in sales from its weight loss drugs Wegovy and Saxenda in 2024, while Eli Lilly's Zepbound generated $4.9 billion in its first full year on the market for weight management.

Supply Challenges and Market Competition

Despite the growing demand, manufacturers have faced difficulties in maintaining adequate supply. Recent shortages allowed telehealth companies and compounding pharmacies to temporarily enter the market with alternative formulations. Although these supply issues have since been resolved, the brief competition impacted drugmakers' profits and led to leadership changes at Novo Nordisk.

The high cost of GLP-1 medications remains a significant barrier to wider adoption. Novo Nordisk's Wegovy and Eli Lilly's Zepbound carry list prices exceeding $1,000 per month for standard doses. This pricing structure has raised concerns among payers, with fewer than one in five employer-sponsored plans covering GLP-1s for weight loss in 2024.

Industry Response and Future Outlook

In response to pricing concerns, pharmaceutical companies are forging partnerships with pharmacy benefit managers to increase access and affordability. Novo Nordisk and Eli Lilly recently partnered with Cigna's health services subsidiary to offer discounts and cap patient copays for GLP-1 weight loss medications. Similarly, CVS Caremark reached an agreement with Novo Nordisk to give Wegovy preferred access on its standard formulary.

The obesity treatment landscape is evolving rapidly, with GLP-1 medications potentially replacing other interventions. Fair Health's report indicates a decline in bariatric surgery rates coinciding with the rise in GLP-1 prescriptions. However, concerns have been raised about the potential impact on mental health, as research suggests patients taking GLP-1 drugs may have a higher risk of depression, anxiety, and suicidal ideation.

As the pharmaceutical industry continues to navigate the complex landscape of obesity treatment, the future of GLP-1 medications remains a topic of intense interest and debate among healthcare providers, payers, and policymakers.