A recent agreement announced by U.S. President Donald Trump on Thursday with leading pharmaceutical companies 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 broaden Medicare coverage for Zepbound and Wegovy, two GLP-1 receptor agonist drugs. GLP-1 agonists, such as Wegovy and Ozempic, are a class of medications that mimic the GLP-1 hormone to aid in treating diabetes and obesity by stimulating insulin release, slowing stomach emptying, and reducing appetite.
Limited access in the U.S. has been a challenge due to inconsistent insurance coverage and high prices, reaching up to $500 per month for higher doses. The new initiative is expected to lower costs significantly with a $50 copay for eligible individuals starting next year. Additionally, lower prices will be introduced gradually for those without coverage through the TrumpRx program, allowing direct purchase from manufacturers, with initial prices around $350 decreasing to $245 over two years.
While these reductions are substantial, Canadian pricing is already comparatively lower. Prices for GLP-1 medications in Canada range from $300 to $500 per month. The potential for further price drops in Canada is on the horizon, unrelated to the U.S. deal. Novo Nordisk, the manufacturer of Ozempic and Wegovy, might lose its market exclusivity in Canada in January, potentially paving the way for generic alternatives that could bring prices down to under $100 from the current $400.
The popularity of GLP-1 drugs in Canada has contributed significantly to public drug plan expenses. Between 2017-18 and 2022-23, prescription drug spending for public drug plans in Canada surged by over $3 billion to exceed $14 billion. Ozempic and other antidiabetic medications have played a substantial role in this increase, with Ozempic alone benefiting over 200,000 individuals nationwide.
The availability of more affordable versions of these medications could prompt more Canadians to seek prescriptions, even for off-label uses not covered by private insurance. Some patients currently pay out-of-pocket for GLP-1 drugs, as Wegovy is not covered by provincial governments in Canada but may be included in private insurance plans based on specific criteria. The potential introduction of generic semaglutide could make these medications more accessible to patients struggling with weight issues, pending physician discretion on off-label uses.