Zinger Key Points
- Wegovy and other semaglutide drugs were found effective in reducing cardiac disease in patients with obesity.
- Weight loss drugs could be better positioned to receive Medicare and insurance coverage after the discovery.
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A new study could save hundreds of thousands of lives in the United States each year.
New research from Danish pharmaceutical giant Novo Nordisk NVO found semaglutide (known under the names Wegovy, Ozempic and Rybelsus) can cut the risk of heart attack in overweight patients by 20%.
Couple that with 697,000 U.S. fatalities linked to heart disease each year, and this discovery could save upwards of 140,000 lives -- each year.
The announcement drove shares of Novo Nordisk up by 16.5% at the time of publication on Tuesday.
GLP-1 drugs had already disrupted the biotech space in recent years by providing a promising, unprecedented and much sought-after treatment for obesity. Tuesday's revelation legitimizes semaglutide and other related compounds as drugs with true medical benefits beyond aesthetics, and gets them one step closer to being green-lit for health insurance coverage.
The Facts: On Tuesday, Novo Nordisk published the results from a 5-year long clinical trial that sought to understand the heart benefits of Wegovy, Ozempic and other semaglutide-based drugs.
The study looked at more than 17,600 patients, all above the age of 45, who were grappling with issues related to being overweight or obese, in addition to having cardiovascular disease.
Some patients were given weekly subcutaneous injections of Wegovy while others were only given a placebo. Those in the Wegovy group experienced a 20% reduction in major adverse cardiovascular events, which includes strokes and myocardial infarction (commonly known as heart attack) as well as death by cardiovascular disease.
Why It Matters: “People living with obesity have an increased risk of cardiovascular disease," said Martin Holst Lange, executive vice president for Development at Novo Nordisk.
However, "to date, there are no approved weight management medications proven to deliver effective weight management while also reducing the risk of heart attack, stroke or cardiovascular death," he added.
Wegovy and similar obesity drugs are currently not covered by Medicare or many other private insurers. The list price for treatment with Wegovy currently runs at more than $13,600 a year.
A recent article in the New England Journal of Medicine found that if only 10% of Medicare patients with obesity were to seek treatment with Wegovy, it would cost the U.S. government $27 billion a year, or 18.5% of the program’s total spendings on patient drugs.
However, the situation is further complicated by the fact that over 42% of Americans are classified as obese, according to the National Institutes of Health (NIH), and heart disease remains the primary cause of death in the nation
GLP-1 drugs are named as such because they simulate the actions of the GLP-1 hormone. This hormone is typically secreted by the body following a meal and plays a role in creating a sensation of fullness. Along with this, it has several other functions, such as lowering blood sugar levels. This multifunctionality makes the class of GLP-1 drugs effective in treating type-2 diabetes.
While these medications are normally covered for diabetes patients, employers and private insurers have been reluctant to cover their costs in the case of obesity.
Novo Nordisk competitor Eli Lilly LLY posted $8.3 billion quarterly revenues on Tuesday. Almost $1 billion came from sales of Mounjaro, another GLP-1 drug that is approved for the treatment of diabetes and is expected to follow Wegovy's path in getting FDA approval for weight loss later this year.
While Mounjaro has not been approved for obesity, it is reportedly being prescribed off-label by physicians. The list price of Mounjaro is $1,023 per fill.
Eli Lilly shares climbed 13.9% on Tuesday following the positive results and Novo Nordisk's announcement.
Eli Lilly’s Mounjaro is a brand name for tirzepatide, a drug distinct from semaglutide, which was used in Novo Nordisk’s trial. While both have a similar profile, there hasn't been a published clinical trial testing the effects of tirzepatide in patients with obesity and heart disease.
Novo Nordisk is currently the second most valuable company in Europe by market cap. It will report its quarterly results on Friday.
Photo by Andres Ayrton on Pexels.
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