Weight-Loss Drug Market Expected to Reach $100 Billion by 2030; Listed Prices Misleadingly High Compared to Actual Payment Received by Manufacturers

Exploding global demand for weight-loss medications, despite high-listed prices, sees estimates by Goldman Sachs for market size of new class of drugs known as GLP-1s reaching $100 billion by 2030, with real prices for consumers significantly lower after coupons and rebates.

• The listed prices of the new class of weight-loss drugs, called GLP-1s, are significantly higher than the actual payments received by manufacturers. After factoring in coupons and rebates, the difference in cost can be up to 79% lower.
• GLP-1s, including popular drugs Ozempic, Wegovy, Rybelsus and Mounjaro, are expected to see explosive demand due to their efficacy in aiding weight loss, treating diabetes, and potentially reducing the risk of heart attacks.
• The market for GLP-1 drugs is projected to reach $100 billion by 2030 despite the high listed prices, which are substantially higher in the U.S. compared to other countries.
• The high listed prices of GLP-1 drugs can impact insurance and policy considerations since insurers set cost-sharing based on the drug's listed price, not its actual price paid. This can increase costs for users and reduce premiums for non-users.
• Several biotech companies like Lilly and Pfizer, and smaller Massachusetts-based biotechs, are researching and developing new therapies to enter the lucrative market, with treatments that could be more effective, easier to administer, and potentially cheaper.

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