New data on the heart benefit of an obesity drug from Novo Nordisk increases the chances of a pay-off for it and rival Eli Lilly, which have spent a record amount on U.S. lobbying to win government backing for the drugs, analysts and experts said.
U.S. law classifies weight-loss treatments as lifestyle drugs and bars Medicare from paying for them. Novo and Eli Lilly have spent nearly $1.3 million this year lobbying the U.S. Congress on obesity and specifically on a bill reintroduced in July that would allow the Medicare health plan to reimburse these medicines.
Novo's treatment was shown to decrease heart attacks and strokes by 20% and the drugmaker has said it will seek regulatory approval for Wegovy as a cardiovascular treatment, which analysts and health policy experts said could also be a route to winning reimbursement from Medicare.
Vanderbilt University Professor Stacie Dusetzina said she thought the trial results might provide an avenue to coverage for people similar to those in the study in terms of having a prior heart attack or stroke.
"The drug ingredient semaglutide is already covered when used in lower doses for treatment of diabetes, so if the drug receives additional indications that are typically covered by Medicare, I'd expect those patients to have access to the drug," she said.
Wegovy and Eli Lilly's Mounjaro, a diabetes treatment similar to Wegovy that is expected to be approved for obesity this year, are two of the fastest growing drugs in the country, with a price tag of more than $1,000 per month. Wegovy prescriptions were up 300% at their peak, according to data from Barclays, before supply issues began to hamper sales.
Novo Nordisk and Eli Lilly did not respond to requests for comment.
A COMPELLING CASE
Analysts said the data made a compelling case for long-term health benefits of the drug.
"This 20% risk reduction in cardiovascular events, including death, will start to make a huge difference and a real push to get the law changed," said BMO analyst Evan Seigerman.
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