A recent agreement between U.S. President Donald Trump and major pharmaceutical companies is aimed at broadening access and reducing costs for popular weight-loss medications in the U.S. The deal with Eli Lilly and Novo Nordisk will expand Medicare coverage for Zepbound and Wegovy, two GLP-1 receptor agonist drugs. These medications, such as Wegovy and Ozempic, mimic the GLP-1 hormone to address diabetes and obesity by boosting insulin release, slowing stomach emptying, and curbing appetite.
Currently, limited access in the U.S. is 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. Canadians may also benefit, as drug prices in Canada are already comparatively lower. Dr. Nisha Gupta, an endocrinologist from McGill University, noted that Canadian prices for GLP-1 drugs are notably cheaper.
Under the agreement, starting next year, Medicare coverage will expand for individuals with severe obesity and related health issues, with a $50 copay. Additionally, the TrumpRx program will introduce lower-priced drugs directly from manufacturers, with initial prices around $350 decreasing to $245 over two years. In Canada, prices for GLP-1 medications, including Ozempic and Wegovy, may drop further as Novo Nordisk’s market exclusivity is set to expire, potentially allowing for generic versions.
Mina Tadrous, a pharmaceutical pricing expert at the University of Toronto, estimates that generic versions of semaglutide could cost under $100, down from $400. While this could enhance accessibility, Gupta emphasizes uncertainty over the specific generic versions and costs. GLP-1 drugs are popular in Canada, with rising prescription drug spending, particularly on antidiabetic medications like Ozempic.
Cheaper prices might prompt more Canadians to seek prescriptions, especially for off-label uses not covered by private insurance plans. Some patients currently pay out-of-pocket for GLP-1 drugs, like Wegovy, which is not covered by Canadian provincial governments but may be included in private insurance plans based on specific criteria. The potential availability of generic semaglutide could facilitate easier access for overweight or obese patients in need, subject to individual physician discretion.