Key Highlights
- GLP-1 prescriptions continued rising in November across major developed markets ¹
- Public and private health systems are reassessing long-term cost exposure
Demand for GLP-1 medications continued accelerating in November, with obesity treatment driving growth across North America and Europe ¹.
Originally developed for Type 2 diabetes, drugs such as semaglutide- and tirzepatide-based therapies are now widely prescribed for chronic weight management following regulatory approvals in multiple jurisdictions.
Adoption is broadening quickly — and healthcare budgets are beginning to reflect that shift.
Where the Financial Pressure Is Emerging
The fiscal impact is most visible in the United States, where annual treatment costs can exceed $10,000 per patient before rebates. With approximately 42% of U.S. adults classified as obese ², eligibility pools are large.
State Medicaid programs, employer-sponsored health plans, and federal policymakers are reviewing long-term reimbursement models as utilization rises.
In Europe, demand is also increasing — particularly in Germany, the UK, and Nordic markets — though centralized pricing negotiations and reimbursement controls are moderating budget exposure. The UK’s NHS has already limited eligibility thresholds in response to cost concerns.
Canada and Australia are also seeing steady uptake, though total spending remains smaller relative to the U.S. market.
Pharmaceutical Revenues and Supply Expansion
Drugmakers reported continued revenue growth tied to GLP-1 portfolios in late 2025, with manufacturers investing billions in expanded production facilities after earlier supply shortages.
Pharmacy benefit managers and national health systems are simultaneously negotiating deeper rebates as prescription volumes rise.
The category has rapidly shifted from a specialized diabetes therapy segment into one of the largest growth drivers in global pharmaceuticals.
Budget Planning Moves Into Focus
While near-term spending is increasing, policymakers and health economists are modeling whether broader GLP-1 adoption could reduce long-term costs associated with cardiovascular disease, stroke, kidney failure, and obesity-related hospitalizations.
The debate is now centered on reimbursement rules, eligibility thresholds, and negotiated pricing — not clinical performance.
As 2026 budget planning begins, health systems and insurers are being forced to decide how much of the cost they are willing to absorb — and how quickly adoption should expand.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
Sources:
¹ https://www.fda.gov/news-events
² https://www.cdc.gov/obesity/data/adult.html
