A recent agreement announced by U.S. President Donald Trump aims to enhance access and reduce costs for popular weight-loss medications in the United States. The deal with Eli Lilly and Novo Nordisk will expand Medicare coverage for Zepbound and Wegovy, two GLP-1 receptor agonist drugs. GLP-1 agonists, including semaglutide medications like Wegovy and Ozempic, are used to treat diabetes and obesity by mimicking the GLP-1 hormone to stimulate insulin release, slow stomach emptying, and reduce appetite.
In the U.S., limited access to these drugs has been due to inadequate insurance coverage and high prices, reaching up to $500 per month for higher doses. The new agreement is expected to lower costs significantly. However, Canadian pricing for GLP-1 drugs is already comparatively lower, even with exchange rates considered.
Starting next year, coverage for these medications will expand for individuals with severe obesity or overweight individuals with serious health issues, with a copay of $50. Additionally, lower prices will be introduced through the TrumpRx program, allowing direct purchase from manufacturers, starting in January. The average drug price on TrumpRx is anticipated to begin at $350 and decrease to $245 over two years.
Meanwhile, in Canada, prices for GLP-1 medications, such as Ozempic and Wegovy, may decrease further in the upcoming year due to potential market exclusivity changes for Novo Nordisk’s semaglutide brands. This could result in generic versions becoming available, potentially reducing the cost from $400 to under $100 for the same strength product. However, the specifics of the generic versions and their availability remain uncertain.
GLP-1 drugs are already popular in Canada, impacting provincial drug plans significantly. Cheaper prices could lead to increased prescription demand, including off-label use in cases where private insurance does not cover them. Some patients currently pay for GLP-1 drugs out-of-pocket, as certain medications are not covered by provincial governments but may be included in private insurance plans based on specific criteria.
Overall, the agreement in the U.S. and potential market changes in Canada could make these medications more accessible to individuals struggling with weight management and related health conditions.
