Dieting is getting cheaper: price drop in the GLP-1 drug market

Medications such as Wegovy (Novo Nordisk) and Zepbound (Eli Lilly) deliver significant weight loss results, yet their official list prices still exceed $1,000 per month. Since most employers do not cover these treatments, around 100 million people must fund them out of pocket. Political pressure is mounting – Medicare has been authorized to negotiate prices, and Joe Biden is urging price reductions – while states like Connecticut are already seeking federal approval to produce generic versions before patent protections expire.

Demand is huge: according to PwC, 30–35 percent of Americans are interested in using GLP-1 drugs. Manufacturers have responded by introducing direct-to-consumer pricing, making treatments available for as little as $499 – half the previous cost. Research from Cornell University shows that users spend an average of $240 less per month on food and beverages, with grocery spending down 5.5 percent and spending on fast-food restaurants and cafés down 8.6 percent after six months of use.

These changes raise the question of whether government-imposed price caps or exploiting patent loopholes are necessary. Some experts believe it would be sufficient if employers provided a $100–200 monthly contribution through health savings accounts, making cash purchases simpler and cheaper without the need for insurance pre-approvals.

Thus, the two largest manufacturers are not only offering effective medication but also a new access model based on market competition rather than political intervention. The trend’s global impact is already visible: in Denmark, the home of Wegovy, grocery retail sales have fallen due to reduced consumption – a phenomenon now also observed in U.S. stores.