A new study suggests blockbuster weight loss drugs Wegovy and Zepbound are not cost-effective at their current prices, despite the proven health benefits.
The study, published in JAMA Health Forum and conducted by University of Chicago researchers, found that to meet common cost standards, the price of Novo Nordisk’s Wegovy would need to drop by more than 80% to $127 per month, while the cost of Eli Lilly’s Zepbound would need to be reduced by nearly one-third to $361 per month.
The researchers estimated the current average prices to be around $700 per month for Wegovy and $520 per month for Zepbound.
“There’s no doubt that the drugs are demonstrating tremendous health benefits,” David Kim, PhD, a health economist at the University of Chicago and a senior author of the study, told The New York Times. “The problem is the price is too high.”
Eli Lilly rejected the findings, arguing that the study ignored the results of key clinical trial data in which the company’s drug had shown benefits. Liz Skrbkova, a spokesperson for Novo Nordisk, told the news outlet there are “no universally accepted thresholds for what determines a drug to be cost effective.”
Medicare will cover both drugs for patients living with diabetes and for a smaller subset who struggle with obesity and another health condition such as a heart problem or sleep apnea, according to the Times. Meanwhile, out-of-pocket costs for patients can exceed $1,300 per month.
