The future of weight loss drugs might not be focused solely on shedding pounds.
Wall Street Journal pharma reporter Peter Loftus noted that the next surge in sales of GLP-1 drugs will likely be driven by discovering new medical applications for these treatments. The primary products in this market are produced by Novo Nordisk, which makes Ozempic and Wegovy, and Eli Lilly, the manufacturer of Mounjaro and Zepbound. Initially designed to manage Type 2 diabetes by mimicking a gut hormone that regulates blood sugar and suppresses appetite, these drugs have also been adopted for obesity management.
Despite some health insurers’ reluctance to cover these costly treatments—up to $1,300 a month—for obesity alone, pharmaceutical companies are exploring broader uses. They’re investigating potential applications for heart, kidney, and liver diseases to improve insurance coverage, and these efforts are beginning to yield results.
In March, the Food and Drug Administration (FDA) expanded Wegovy’s approved use to include reducing heart risks in adults who are obese or overweight. This approval allowed Medicare coverage for the drug, thereby making it accessible to an additional 3 million Americans.
According to BMO Capital Markets analysts, this new application for Wegovy could generate an additional $3.2 billion in annual sales for Novo Nordisk.
In April, Eli Lilly revealed that Zepbound had shown promise in alleviating sleep apnea in obese patients during late-stage clinical trials. The company now plans to seek FDA approval to expand the drug’s use to include treatment for sleep apnea.
Jefferies analysts project that this new application for Zepbound could boost its sales by $5 billion.
Derek Asay, senior vice president of value and access at Eli Lilly, emphasized the importance of these clinical trials, stating, “It builds this wall of evidence. It helps give that reason to believe there’s more than weight loss here.”
The substantial demand for these drugs has elevated Novo Nordisk and Eli Lilly to the status of the largest pharmaceutical companies in the world by market capitalization. The high demand has also led to ongoing shortages and even contributed to a growth in Denmark’s GDP last year.
Morgan Stanley analysts forecast that the global market for these drugs will reach $105 billion by 2030.