Soaring Costs of GLP-1 Drugs: How Novo Nordisk’s Semaglutide Dominated the U.S. Pharmaceutical Market

The American Society of Health-System Pharmacists recently reported that spending on GLP-1 drugs like Ozempic and Wegovy has increased significantly, with projections indicating that costs will continue to rise for the U.S. healthcare system and the federal government in the coming years. The report noted that GLP-1 treatments were a major contributor to the overall increase in drug spending by healthcare providers such as pharmacies and hospitals last year.

Another health policy research organization, KFF, released a report examining the impact of the recent approval of Wegovy for preventing cardiovascular complications. While Medicare typically does not cover drugs for weight loss purposes, the approval of Wegovy for reducing heart risks means that the federal payer can now cover the drug. Researchers conservatively estimate that Medicare could spend $2.8 billion in a year on Wegovy alone as a result of this new approval.

Novo Nordisk’s semaglutide, marketed as Ozempic for diabetes and Wegovy for obesity, doubled to $38.6 billion, making it the top-selling medicine in 2023 according to American Society of Health-System Pharmacists’ report. This represents a significant increase from its expenditures last year and is projected to continue rising in future years, adding burden to both healthcare providers and patients alike