Two experts have highlighted major challenges that stand in the way of the adoption of new obesity drugs. Dr. Kavita Patel, a physician and NBC News medical contributor, notes that while evidence from Novo Nordisk on Ozempic's ability to delay the progression of chronic kidney disease is robust, data supporting the use of obesity drugs for other conditions including Alzheimer's and alcohol addiction is less developed. She explained on Wednesday's "Fast Money" that research for these applications is 'nowhere near as robust', and further noted that 'We have a long way to go for that.' On Tuesday, Novo Nordisk halted FLOW more than a year after it showed that Ozempic could potentially treat chronic kidney disease in Type 2 diabetic patients, and the company's stock has gone up since the announcement. However, Patel commented that efficacy is just one of the factors for approval for uses outside of diabetes management, pointing to issues such as cost, adherence and prescriber rate as barriers to widespread adoption. She added that patients wishing to use GLP-1 drugs for weight management often have to fund the treatment out of their own pocket, and may not be able to get coverage from their employers or state programs.
If the FDA grants Ozempic approval for usage by Type 2 diabetic patients with chronic kidney disease, Patel believes it could prompt insurance companies to broaden their coverage of the medication. She remarked, “The evidence will be so persuasive that not covering it would be the wrong decision. I think that’s something that the insurers will find difficult.” Mizuho’s Jared Holz predicts that disbursement of GLP-1 treatments may face hurdles because of payer resistance, stating that they "may not see the benefit for another 10, 20, or 30 years." He went on to mention the unusual pricing discrepancy between Novo Nordisk and Eli Lilly and that the growth trend may not continue, considering the limited supply of drugs. When asked for a statement, a Novo Nordisk representative cited a quiet period and no response was immediately given by Eli Lilly.
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