How Ozempic and Wegovy Could Break the Healthcare System

Novo Nordisk's Wegovy and Eli Lilly's Ozempic, two new obesity drugs, are expected to generate tens of billions of dollars in revenue each year. While this is great news for the drugmakers, it could be a disaster for the companies and government agencies that will have to pay for them. The drugs, known as GLP-1 receptor agonists, are the most effective safe weight-loss drugs in history, with the potential to reduce body weight by up to 20% and lower the risk of heart attack or stroke. Demand for these drugs is already high and is projected to increase as more supply comes online and more GLP-1s are approved by the FDA for weight loss. However, the healthcare crisis that could arise from spending on these drugs threatens to overwhelm insurers, employers, and government programs that purchase the country's medicines. The financial crunch is expected to peak in 2025, when Medicare coverage of the drugs is set to begin1.

Here are the key bullet points:

• Novo Nordisk's Wegovy and Eli Lilly's Ozempic, two new obesity drugs, are expected to generate tens of billions of dollars in revenue each year12367.
• The drugs, known as GLP-1 receptor agonists, are the most effective safe weight-loss drugs in history, with the potential to reduce body weight by up to 20% and lower the risk of heart attack or stroke1.
• Demand for these drugs is already high and is projected to increase as more supply comes online and more GLP-1s are approved by the FDA for weight loss13.
• However, the healthcare crisis that could arise from spending on these drugs threatens to overwhelm insurers, employers, and government programs that purchase the country's medicines1.
• The financial crunch is expected to peak in 2025, when Medicare coverage of the drugs is set to begin1.

The potential financial impact of the new obesity drugs highlights the need for a comprehensive and sustainable approach to healthcare spending and drug pricing.