Slimming down

One of the most striking trends in the US pharmaceutical market is the surge in demand for GLP-1 drugs, which are used to treat Type 2 diabetes and obesity. GLP-1 drugs mimic the effects of a hormone that stimulates insulin secretions and lowers blood sugar levels. This class of drugs offer several advantages over other diabetes medications, such as weight loss, lower risk of hypoglycemia, and cardiovascular benefits. It’s not a small category of drugs anymore. The two largest companies in the space sold about USD 36 billion worth of GLP-1 drugs in 2023. With such high sales numbers it’s unlikely patients are paying out of pocket for these pricey drugs. Indeed, UBS Evidence Lab finds that only 4% of diabetics and 14% of non-diabetics (mostly obesity patients) using GLP-1s pay out-of-pocket in the US.

Source: UBS Evidence Lab, March 2024.