GLP-1 manufacturers are now offering significant discounts to entice payers and employers to cover their popular medications, The Wall Street Journal reported Sept. 20.
Weight loss medications such as Ozempic and Wegovy can cost upward of $10,000 a year, leaving insurers, health systems, state health plans and self-funded employers grappling with how to cover the expensive medications. Some large organizations have limited coverage or dropped benefits entirely.
In January, Eli Lilly launched a website for customers to order prescription drugs directly from the manufacturer, including weight loss medications such as Zepbound. Lilly has also recently introduced Zepbound vials priced as low as $399 monthly.
According to the Journal, the GLP-1 "pricing fight" began in late 2023, when Lilly priced Zepbound at $1,060 per month, or 20% lower than Novo Nordisk's Wegovy. Analysts told the newspaper that prices have likely been cut even further since then.
The Journal also reported that Novo Nordisk has responded by increasing its rebates for Wegovy, with average discounts climbing from about 35% to 51% of the list price in the second quarter. A spokesperson for the manufacturer told the outlet that the price of Ozempic has decreased by 40% since its launch after discounts, and Wegovy's net price is following a similar downward trend.
As the demand for GLP-1 drugs grows, there are several factors emerging that could result in even lower prices, including potential drug price negotiations with CMS, more GLP-1s hitting the market, and new oral versions of the medications.