Danish pharmaceutical company Novo Nordisk (NYSE:NVO) unveiled significant cardiovascular benefits linked with its weight-loss drug, Wegovy. The latest findings from a late-stage trial demonstrated that patients using Wegovy experienced a 20% decrease in heart attack, stroke, or death resulting from heart disease compared to placebo recipients. This could significantly influence the drug's classification in the U.S., where it currently costs $1,300 per month and is categorized as a lifestyle drug under the U.S. Medicare health plan. Such results might encourage insurers and health authorities in Europe and the U.S. to cover Wegovy expenses for a more extensive patient segment, especially considering the potential to reduce heart disease treatment costs in overweight and obese individuals.
While the new evidence underscores the health benefits of Wegovy, debates surrounding its long-term financial impact on healthcare systems ensue. Dr. Jeff Levin-Scherz from Willis Towers Watson (NASDAQ:WTW) noted that significant savings from this medication might still be distant. The primary advantage could lie in enhancing patients' quality of life rather than decreasing their overall care costs. This is pivotal, especially since large U.S. companies have reduced weight-loss treatment coverage in their employee healthcare benefits due to escalating costs. Nevertheless, Martin Holst Lange from Novo Nordisk believes that this landmark data might reshape the perception and treatment of obesity.
Wegovy has dramatically impacted the weight-loss market since its introduction in the U.S. in June 2021. The drug, which makes patients feel satiated for extended periods, leads to an average 15% weight reduction when complemented with dietary and lifestyle modifications. It falls under the GLP-1 agonist drug class, initially conceived for type 2 diabetes management. The World Health Organization states that global obesity figures have tripled since 1975, with over 650 million adults classified as obese and around 1.3 billion deemed overweight. This rising health concern augments the risks of heart disease and diabetes.
The trial's favorable results are anticipated to resonate with physicians prescribing weight-loss treatments, leading to an intensified focus on Wegovy. Barclays (LON:BARC) predicts that positive outcomes from the study could elevate Wegovy's adoption by up to 25% by 2030, given the approval for extended use. However, Novo Nordisk is grappling with the drug's surging demand in the U.S., even leading them to cut starter dose supplies in May. Despite reports of limited availability for larger doses, Novo denies any shortages.
This article was originally published on Quiver Quantitative