The adoption of new obesity drugs is facing significant challenges, according to experts. Dr. Kavita Patel, a physician and NBC News medical contributor, believes that data from Novo Nordisk on the drug Ozempic’s ability to delay the progression of chronic kidney disease is strong evidence for its secondary uses. However, she notes that data supporting the use of obesity drugs for conditions such as Alzheimer’s and alcohol addiction is underdeveloped. Patel also mentions the barriers to adoption for obesity drugs, including cost, adherence, and low prescriber rates. Insurance coverage for these drugs is limited, and employers and states are declining to cover weight loss indications.
If the U.S. FDA approves Ozempic for use in Type 2 diabetics with chronic kidney disease, it could push insurance companies to expand coverage. Jared Holz, Mizuho Health Care Sector Strategist, anticipates challenges related to insurance coverage as more patients start taking obesity drugs, potentially limiting overall adoption. He also highlights the valuation disconnect between Novo Nordisk, Eli Lilly, and other pharmaceutical companies in the healthcare sector. The growth trend may not be sustainable due to supply constraints that have left patients unable to access the drugs. Novo Nordisk and Eli Lilly may struggle to generate revenue that satisfies investors.
