In the last three months of 2022, U.S. health care providers wrote more than 9 million prescriptions for Wegovy, Ozempic and similar weight-loss drugs, according to a report released Wednesday. The report, from analytics firm TrilliantHealth, shows that quarterly prescriptions for these weight-loss drugs have increased by 300% compared to 2020.
As of the end of 2022, Novo Nordisk's Wegovy accounted for more than 65% of the total prescriptions. Semaglutide is the main active ingredient of Wegovy. It is a GLP-1 (glucagon-like-1) receptor agonist that can stimulate insulin secretion and inhibit glucagon secretion to delay gastric emptying and reduce appetite, ultimately achieving the effect of lowering blood sugar and weight loss.
These data further confirm the strong market demand for this type of weight loss drug. In addition to weight loss, Wegovy can also bring other health benefits. This has caused Wegovy to sell well in the United States since its launch in June 2021, because the obesity rate in the United States has reached 40%, and more than 100 million Americans are obese. However, Novo Nordisk has difficulty meeting demand while increasing production capacity.
Therefore, the future growth rate of weight loss drug prescriptions will largely depend on the supply of drug manufacturers such as Novo Nordisk and Eli Lilly. Eli Lilly's Mounjaro is also a GLP-1 drug.
Weight loss drugs like Wegovy will continue to be difficult to obtain for the foreseeable future because demand exceeds drug manufacturers' ability to produce enough drugs.
Doug Langa, executive vice president of Novo Nordisk's North American business, previously said: "We continue to see huge demand for Wegovy." Although supply capacity is gradually expanding, the supply of low-dose Wegovy will still be limited to ensure continuity of supply to existing drug users.
TrilliantHealth's analysis is based on insurance claims data from about 300 million Americans. But the total number of GLP-1 prescriptions is still likely an underestimate because some insurance plans don't cover weight-loss drugs like Wegovy, leaving patients to pay out of pocket.
It is reported that the price of Ozempic is up to US$935 per month, while its similar weight loss product Wegovy is priced at about US$1,300 per month. But it's important to note that these drugs need to be taken indefinitely to maintain weight, just like cholesterol-lowering or blood pressure medications, which may need to be taken for life.
Other drugmakers are also racing to develop the nascent industry of weight-loss pills. Analysts say Eli Lilly and Co's Mounjaro has the potential to surpass Novo Nordisk's drug if approved in the United States.
German investment bank Berenberg believes that products from Novo Nordisk and Eli Lilly will drive rapid growth in the global weight loss drug market this decade. Berenberg predicts that this market could be worth as much as $85 billion by 2030.