The future of weight loss drugs is branching out beyond their original purpose.
According to Wall Street Journal pharma reporter Peter Loftus, the next surge in GLP-1 drug sales will likely come from new medical applications for these treatments, originally designed for weight loss.
Novo Nordisk and Eli Lilly, the current leaders in the GLP-1 market, produce drugs such as Ozempic, Wegovy, Mounjaro, and Zepbound. These drugs mimic a gut hormone that controls blood sugar and suppresses appetite. Initially, they were marketed for treating Type 2 diabetes, but their uses have expanded to address obesity.
Despite the high costs—up to $1,300 a month—some health insurers remain reluctant to cover these treatments solely for obesity. Consequently, pharmaceutical companies are exploring wider applications to broaden insurance coverage, researching potential treatments for heart, kidney, and liver diseases.
Their efforts are yielding results. In March, the Food and Drug Administration (FDA) approved an expanded use of Wegovy to reduce heart risks for obese or overweight adults. This approval allows Medicare to cover the drug, making it accessible to an additional 3 million Americans.
Analysts at BMO Capital Markets predict this new use for Wegovy could generate an extra $3.2 billion annually for Novo Nordisk.
Similarly, Eli Lilly announced in April that Zepbound, a drug they produce, has shown promise in alleviating sleep apnea in obese patients during late-stage clinical trials. They plan to seek FDA approval for this new use, which analysts at Jefferies estimate could boost Zepbound’s sales by $5 billion.
“This builds a strong case,” said Derek Asay, senior vice president of value and access at Eli Lilly, referencing the ongoing trials for other uses of GLP-1 medications. “It supports the belief that these drugs offer more than just weight loss.”
The high demand for these drugs has propelled Novo Nordisk and Eli Lilly to become the largest pharmaceutical companies worldwide by market capitalization. This demand has caused shortages and even increased Denmark’s GDP.
Morgan Stanley analysts project the global market for these drugs will reach $105 billion by 2030.