An oral anti-obesity drug is coming
May 31, 2023
Instead of a long note on Friday, this week I’m spreading my posts through the week. Please let me know whether you’d rather this newsletter as one long note or 3-4 shorter notes.
An oral anti-obesity drug works as well as injectable medications
Novo Nordisk issued a press release this week showing data that an oral version of semaglutide, the active drug in Wegovy, led to an average of 15% weight loss over a 68 week trial in 667 obese adults. Oral semaglutide is already available as Rybelsus to treat diabetes. This new trial used a higher dose formulation, as the dose in Rybelsus led to more modest weight loss.
This is only a press release; Novo Nordisk has not published this research in a peer reviewed journal, and data on side effects and population characteristics are sparse.
This is good news clinically. Oral medications are better accepted than self-injections, and the cost to formulate oral semaglutide pills is lower than the cost to formulate and package self-injections. Oral pills are also likely better able to withstand high or low temperatures during shipping. Oral semaglutide or weight loss could mean more competition in the marketplace, which perhaps could lead to lower prices.
Implications for employers:
- The promise and high cost of the GLP-1 anti-obesity medications continues to loom large for employer sponsored health insurance.
- WTW data continues to show that a majority (over 60%) of our clients are covering these medications, but other surveys and press reports suggest that a large portion of employers are seeking to limit coverage.
- About 30% of membership in employer-sponsored health plans is likely eligible for these medications, which could increase outpatient pharmacy costs by as much as half by our calculations.
- Employers should continue to consider these increased costs as they create budgets and should continue to push for lower unit prices.
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Jeff