Novo Nordisk and Eli Lilly Slash Prices on Wegovy and Zepbound, Intensifying Weight-Loss Drug Competition
In a significant move to broaden access to their blockbuster weight-loss medications, Novo Nordisk and Eli Lilly have announced price reductions for Wegovy and Zepbound, respectively. The announcements come amidst growing concerns about the high cost of these drugs and their limited coverage by health insurers, creating a more competitive landscape in the burgeoning market for GLP-1 receptor agonists.
Less than two weeks after Eli Lilly initiated price cuts for Zepbound, Novo Nordisk revealed that it would lower the price of Wegovy for cash-paying customers. The Danish drugmaker stated that individuals with a prescription for Wegovy can now purchase the drug through its NovoCare Pharmacy for a fixed price of $499 per month. This standardized pricing applies across all five dosage strengths, ranging from 0.25 to 2.4 milligrams, and includes direct home delivery.
Novo Nordisk emphasized that this discounted price is specifically designed to appeal to individuals who are uninsured or whose insurance plans do not cover GLP-1 medications, which include both Wegovy and Zepbound. While health insurers often cover diabetes drugs like Ozempic and Mounjaro, they are less inclined to cover medications solely for obesity. A recent survey by benefits consultant Mercer revealed that less than half of large employers cover GLP-1 drugs for obesity. As a result, many consumers face exorbitant out-of-pocket expenses for these medications, often exceeding $1,000 per month before rebates or discounts.
Currently, Novo Nordisk’s $499 price is exclusively available to customers who purchase Wegovy through the company’s NovoCare Pharmacy. However, cash-paying customers can still acquire the drug for $650 at other pharmacies. Novo Nordisk spokesperson Jamie Bennett stated that the company plans to extend the $499 price to cash-paying customers at other pharmacies in the near future. The list price for Wegovy remains at $1,349 for a one-month supply. Customers with insurance coverage for Wegovy typically pay a copay of no more than $25 per month, according to the company.
Eli Lilly, Novo Nordisk’s primary competitor, initiated its price cuts for Zepbound on February 25. The company reduced the monthly price for lower-dosage vials of Zepbound by $50 for consumers who pay cash through LillyDirect, the drugmaker’s online platform. Lilly’s pricing structure varies depending on the dosage. Customers purchasing a month’s supply of 2.5 mg vials will pay $349, while 5 mg vials will cost $499. Lilly also announced prices for higher dosages of 7.5 mg and 10 mg, set at $599 and $699 per month, respectively. To further incentivize adoption, Lilly is offering a discounted price of $499 per month for the first fill of the higher dosages, as well as for refills within 45 days.
These price reductions come as consumers are anticipated to lose access to less expensive, compounded versions of the weight-loss medications. Compounding pharmacies are authorized by the federal government to sell copies of drugs when the medications are in short supply. However, the FDA recently declared that Wegovy and Zepbound are no longer in shortage. Consequently, consumers who have been obtaining cheaper, compounded versions of these drugs through telehealth companies or other prescribers will need to seek alternative sources.
The price cuts implemented by Novo Nordisk and Eli Lilly are expected to intensify competition in the weight-loss drug market. By offering more affordable options for cash-paying customers, the companies are aiming to expand access to their medications and capture a larger share of the growing market. However, it remains to be seen whether these price reductions will be sufficient to address the broader issue of affordability and access to these drugs.
Many healthcare advocates and patient advocacy groups argue that insurance coverage for obesity medications is crucial to ensuring equitable access. They point out that obesity is a chronic disease that requires long-term treatment, and that denying coverage for these medications can have detrimental consequences for patients’ health and well-being. Furthermore, the lack of insurance coverage can exacerbate existing health disparities, as low-income individuals and communities of color are disproportionately affected by obesity.
The recent price cuts by Novo Nordisk and Eli Lilly represent a positive step towards improving affordability and access to weight-loss medications. However, further efforts are needed to address the broader issue of insurance coverage and to ensure that these medications are accessible to all individuals who could benefit from them.
The decision by the FDA to remove Wegovy and Zepbound from the drug shortage list is expected to have a significant impact on the market for compounded versions of these medications. Compounding pharmacies have been able to offer cheaper alternatives to the branded drugs due to the shortage. However, with the FDA’s announcement, these pharmacies will no longer be able to legally sell compounded versions of Wegovy and Zepbound.
This development is likely to drive more patients to seek prescriptions for the branded drugs, which could further increase demand and potentially lead to future shortages. It also highlights the importance of ensuring that the supply chain for these medications is robust enough to meet the growing demand.
The price reductions implemented by Novo Nordisk and Eli Lilly are likely to have a ripple effect throughout the healthcare industry. Insurers may face pressure to expand coverage for weight-loss medications, and other drugmakers may be compelled to lower their prices as well. The long-term impact of these developments remains to be seen, but it is clear that the market for weight-loss drugs is undergoing a significant transformation.
Ultimately, the success of these medications will depend on a combination of factors, including affordability, accessibility, and efficacy. As more and more individuals seek treatment for obesity, it is essential to ensure that they have access to safe and effective medications that can help them achieve their weight-loss goals and improve their overall health.
The ongoing competition between Novo Nordisk and Eli Lilly is expected to drive further innovation in the weight-loss drug market. Both companies are investing heavily in research and development to develop new and improved medications for obesity. This competition is likely to lead to the development of more effective and convenient weight-loss treatments in the future.
