64% of companies with 20,000 or more employees, 44% of companies with 500 or more employees, medical insurance coverage
Focus on the impact of Kennedy’s health policy, which is critical of obesity drugs
Photo = REUTERS As U.S. President-elect Donald Trump nominated Robert F. Kennedy Jr. as the next Secretary of Health and Human Services last week, a cold wave is coming to the U.S. obesity treatment market, which has been growing rapidly over the past two years.
Nevertheless, the number of American companies that cover obesity treatments through medical insurance has increased this year.
According to a Reuters report on the 20th (local time), a survey released by consulting firm Mercer on the same day found that 64% of U.S. companies with more than 20,000 employees cover weight loss drugs through health insurance. This is 56% last year. There was a significant increase in . It was found that 44% of companies with more than 500 employees also cover weight loss drugs, up from 41% last year.
American depositary shares of Eli Lilly and Novo Nordisk, which produce diabetes and weight loss drugs, plunged 11% until the previous day following the news that Kennedy was nominated as Secretary of Health and Human Services last week. The American depositary receipts (NVO) of Novo Nordisk, which makes Ozempic and Wigobi, also fell 4.5%.
Eli Lilly’s stock price has risen more than 200% since early 2022 thanks to its obesity treatment drug.
Kennedy Jr. also spread false information that vaccines can cause autism, and the Kennedy family’s cousin, Ambassador to Australia Caroline Kennedy, pointed out that “his views are dangerous.” Trump nominated him as Secretary of Health and Human Services. After this, the American medical community and the medical community reacted with shock.
In addition to Eli Lilly and Novo Nordisk, stock prices in the overall U.S. biotechnology industry have fallen, with the stock prices of vaccine manufacturers Pfizer and Moderna already plummeting following the news of his nomination, known as a vaccine futility advocate.
Market Watch noted that the situation for the two pharmaceutical companies that have been leading the obesity treatment market during the new Trump administration may worsen.
Raymond James analyst Chris Meekins pointed out, “Kennedy has criticized Americans for being too dependent on drugs, especially obesity drugs.”
Despite critical attention, the inaccurate understanding of reality is also criticized as a concern for health policy makers.
At a town hall event last September, Kennedy mentioned that Ozempic’s sales in the U.S. were $3 trillion (4,192 trillion won), which were actually around $10 billion. This is an absurd figure considering that Americans’ annual medical expenses are $4.5 trillion (6,300 trillion won). Recently, Fox News criticized, “They (Novo Nordisk) are trying to sell Americans weight loss pills because we are stupid and addicted to drugs.”
Wall Street analysts compiled by FactSet expect the combined sales of Lilly’s Zebbound and Maunjaro to reach $55 billion (76 trillion won) per year by 2029. Novo’s WeGobee and Ozempic sales are expected to reach approximately $42 billion (59 trillion won) in 2028.
However, considering the new Trump administration’s distrust of the pharmaceutical industry, the path to achieving these figures may be thorny.
Guest reporter Kim Jeong-ah kja@hankyung.com
Urance, which highlights a significant gap in access. Additionally, the type of treatments covered can vary widely, and there may still be stigma associated with obesity that impacts the willingness of both employers and employees to seek these treatments. It’s essential that we continue to advocate for comprehensive coverage and education to reduce stigma and improve access to effective obesity treatments.
Interviewer: Welcome to World Today News. Today, we have two guests with us, Dr. Jane Doe, a health policy expert, and Mr. John Smith, the CEO of a pharmaceutical company specializing in obesity treatments. Dr. Doe, can you tell us about the impact of Robert F. Kennedy Jr.’s nomination as the next Secretary of Health and Human Services on health policies related to obesity treatments?
Dr. Jane Doe: Well, Mr. Kennedy’s nomination has certainly raised some concerns among healthcare professionals and policy makers. His views on vaccines and pharmaceutical industries are well documented, and his nomination indicates that the new administration may have a critical eye on these areas. With regard to obesity treatments, his stance against what he considers America’s dependence on drugs could lead to reduced coverage for these medications or even stricter regulations on their use. This could potentially harm efforts to promote public health and reduce the prevalence of various health conditions associated with obesity.
Interviewer: That’s an interesting point, Mr. Smith. As the head of a company specializing in obesity treatments, how do you view these developments?
Mr. John Smith: We are obviously concerned about the potential impact of Mr. Kennedy’s nomination on our industry. However, we are hopeful that he will listen to both sides of the story and make informed decisions based on evidence and science. We understand the need for responsible regulation, but it’s important that we don’t overregulate these medications simply because of misconceptions or false accusations. There is a significant unmet need for effective weight loss treatments in the US, and we believe our products can help address this problem.
Interviewer: Recent Mercer surveys indicate an increase in companies offering obesity treatments through medical insurance. Can you talk about the trends you’re seeing in this area, Dr. Doe?
Dr. Jane Doe: Yes, that’s correct. While the increase in coverage may seem promising, it’s important to note that it’s still relatively low. For example, only 64% of companies with 20,0000 or more employees offer obesity treatments through medical ins
