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News & Trends - Pharmaceuticals

Novo Nordisk’s Wegovy hits private market for obesity: Should the government subsidise it?

Health Industry Hub | August 2, 2024 |

Pharma News: Australia now has access to the first once-weekly GLP-1 receptor agonist (RA) indicated for chronic weight management through private prescriptions.

Novo Nordisk’s corporate vice president & General Manager for Oceania, Cem Ozenc, stated “I am delighted that Wegovy (semaglutide 2.4mg) is available for patients across Australia including regional areas.”

Ozenc highlighted Novo Nordisk’s commitment to meeting the high global demand for their products since 2022.

“We have worked tirelessly to continue to supply our products in Australia. Our goal is to stabilise supply to be able to give patients and healthcare professionals confidence. To further support the growing needs of patients worldwide, we continue to expand our global manufacturing capacity, investing AUD $24 billion in the past two years.”

With two in three Australians living with obesity and overweight, costing the nation $12 billion annually, the availability of Wegovy addresses a significant clinical unmet need. These conditions often lead to stigma, discrimination, and negative impacts on mental and health-related quality of life. Statistics reveal that people living with obesity are 32% more likely to develop depression.

Dr Georgia Rigas, an Obesity Doctor and Senior Bariatric Medical Practitioner, said “Removing the stigma and perceived ‘sense of failure’ around obesity and overweight is critical. For many patients, obesity and overweight are not the result of poor lifestyle choices. No one chooses to develop this disease. There is a wealth of scientific data showing that genetics and epigenetics play an important role which is obviously outside of an individual’s control.”

A key question remains: Should the government subsidise Wegovy for obesity and overweight treatment?

Associate Professor Priya Sumithran, an endocrinologist and clinician researcher at Monash University, argued for government reimbursement. She emphasised the need to distinguish between the misuse of these medications by celebrities and their legitimate clinical use to improve health.

“Obesity is a complex, chronic disease that can seriously impair health and wellbeing. Several effective, evidence-based medications are approved, and recommended in Australian (and international) guidelines, for obesity management. But, since none are listed on the PBS, only people who can afford to pay hundreds of dollars per month can use them,” said A/Professor Sumithran.

Interestingly, a recent analysis of adults with class II obesity (BMI 35-39.9) found that endoscopic sleeve gastroplasty (ESG), a minimally invasive endoscopic bariatric procedure, added 0.06 more quality-adjusted life-years while costing $33,583 less than Wegovy over five years.

Researchers noted, “While semaglutide is effective for weight loss, it is not economically viable over the long term compared with ESG, which remains a cost-saving alternative for this patient population. The annual price of Wegovy must decrease by more than 3-fold to achieve non-dominance with ESG.”

Professor John Dixon, Vice President of the National Association of Clinical Obesity Services, commented on the broader implications, saying “Australia has one of the highest rates of obesity in the world. Not only is obesity a complex topic which is greatly misunderstood, it requires early and long-term evidence-based care as any other chronic medical condition.

“There is a substantial unmet need to address this chronic and complex disease, and early intervention may help reduce the risk of many other serious conditions.”

Dr Ana Svensson, Senior Medical Director for Oceania, added, “Novo Nordisk has a long history of supporting Australians living with chronic diseases. The introduction of Wegovy 2.4mg offers a new treatment option for those living with overweight or obesity.

“We encourage healthcare professionals and their patients to talk openly about obesity and weight issues and engage in meaningful conversations about long term strategies.”

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