In 2025, the GLP-1 receptor agonists, originally developed as medications for diabetes, will undergo a major transformation in use, as they are now more commonly prescribed to treat obesity.
Insurance Coverage and Employer Considerations
Only a few GLP-1 drugs are offered by US insurers because their annual cost exceeds $10,000, mostly for obesity. Through 2023, such medications were fully covered by only 10 state Medicaid programs. Increasingly, employers are actually more interested in including GLP-1 drugs in their health plans for 2025 or 2026 to promote healthy employees and ultimately reduce healthcare costs over the long term.
Supply and Demand Dynamics
In particular, Novo Nordisk and Eli Lilly face challenges as their GLP-1 drugs enjoy a surge in demand. Rising prescriptions have become a supply concern for both these companies. As an example, since its introduction in the U.S. during early December, weekly prescriptions of Eli Lilly’s Zepbound are rising rapidly. These pharmaceutical giants are ramping up production and expanding their production facilities to meet the expected surge in 2025.
Global Perspectives and Future Outlook
The WHO states that GLP-1 drugs are revolutionary and can be used to fight the obesity epidemic in the world. Nevertheless, the WHO emphasizes that the low-income countries need these drugs to be a part of a comprehensive strategy that is integrated with lifestyle changes and equitable access. There is a need for a holistic treatment of obesity, says the organization as it targets the launch of guidelines on use of GLP-1 drugs by July 2025.
Indeed, with 2025 looming in the horizon, all players involved-from employers and insurers to healthcare providers and legislators-are keeping a watchful eye on how these GLP-1 medications are shaping up. In order to effectively fight obesity and related disorders, the focus remains on finding an appropriate balance among accessibility, price, and successful integration of these drugs into overall health initiatives.
