Title: Boosting the US Economy with GLP-1 Receptor Agonists: The New Weight Loss Medications
The US economy is poised to experience significant gains as an increasing number of Americans adopt popular weight loss medications, such as Ozempic and Wegovy, which belong to the glucagon-like peptide 1 (GLP-1) class of drugs. According to a recent research report from Goldman Sachs, these medications could potentially add between 0.4% and 1% to America’s gross domestic product (GDP) under different scenarios.
GLP-1 receptor agonists were initially developed for the treatment of type 2 diabetes and have since gained worldwide recognition due to their impressive weight loss effects, demonstrated in clinical trials. Although Ozempic is yet to receive approval for weight loss from regulators, Wegovy, a similar medication, has been authorized.
Goldman Sachs asserts that improving health outcomes through the use of GLP-1s can lead to substantial cost savings and productivity increases, thereby contributing to a stronger economic output. However, the potential impact depends on factors such as production scale and compliance with treatment plans.
Poor health negatively impacts the American workforce by keeping some workers out of the labor market and reducing the number of hours worked, as evidenced by extensive research. Goldman Sachs estimates that poor health reduces US economic output by approximately 10% per year due to losses in hours worked and labor force participation, early deaths, and informal caregiving.
Obesity and associated complications place constraints on the US labor supply. With over 30% of Americans being overweight and over 42% having obesity, and nearly half reporting attempts to lose weight in the past year, the economic potential is substantial if these health issues can be effectively addressed.
Academic studies reveal that obese individuals are less likely to work and less productive when they do. The potential economic gains from the recent wave of healthcare innovation, including GLP-1s, could significantly improve overall health outcomes and alleviate the burden on the economy.
Due to their popularity, pharmaceutical companies have ramped up production efforts to meet escalating demand for these medications. Novo Nordisk and Eli Lilly, manufacturers of Wegovy and Mounjaro respectively, have invested billions to expand production capacity.
Despite their popularity, access to these medications can be challenging for some Americans without diabetes. Jody Dushay, an attending endocrinologist at the Beth Israel Deaconess Medical Center, highlighted this issue in a recent opinion piece for CNN.
To address the accessibility concerns, Novo Nordisk has reportedly increased the availability of Wegovy for Americans by more than doubling lower-dose strengths. The drugs are also known for their high costs, which have recently increased further. Novo Nordisk raised Ozempic’s list price by 3.5%, and Eli Lilly increased Mounjaro’s list price by 4.5%. The final cost to consumers depends on their health insurance coverage, not the drugmakers’ list prices.
