New Obesity Drug Must Convince Insurers That It’s Worth the Cost

When a new obesity medication from the Danish drugmaker Novo Nordisk A/S began selling in the U.S. in June, it became the most effective weight loss drug on the market. Wegovy helps patients lose an average of about 15% of their body weight, almost double the rates demonstrated by other prescription treatments, according to study results. That translates to a loss of about 20 to 70 pounds for eligible patients. Only costly and invasive bariatric surgery has shown the ability to eliminate more pounds.

Wegovy works by activating parts of the brain that regulate appetite. Novo, a major manufacturer of diabetes medications, is pinning its hopes on new weight loss meds to diversify its business, and Wegovy, which the Food and Drug Administration approved on June 4, is its most promising offering yet. With more than 100 million people categorized as obese, the U.S. is a potentially huge market for Wegovy, which costs $1,350 for four weekly injections and is being pitched as a long-term therapy.