GLP-1 drugs deemed cost-effective by ICER, report suggests

ICER finds GLP-1 drugs like semaglutide from Novo Nordisk and tirzepatide from Eli Lilly to be cost-effective. The report concludes that these weight loss medications provide significant benefits for patients and the healthcare system, supporting their value-based pricing. The final report will be released later this year, and ICER's recommendations will likely impact the pricing of these drugs.

The Institute for Clinical and Economic Review (ICER) has released a draft report indicating that GLP-1 drugs, including Novo Nordisk's semaglutide (Ozempic and Wegovy) and Eli Lilly's tirzepatide (Mounjaro and Zepbound), are cost-effective for weight loss compared to lifestyle modifications. The report, released on September 9, 2025, highlights the significant benefits these drugs provide for patients and the healthcare system, supporting their value-based pricing.

Cost-Effectiveness and Benefits

ICER's Chief Medical Officer, Dr. David Rind, noted that the drugs have become more cost-effective due to a substantial reduction in their net prices. The current net prices of semaglutide and tirzepatide are estimated to be $6,830 and $7,973, respectively, down from previous years . The report also underscores the cardiovascular health benefits of these drugs, which have been shown to reduce the risk of major cardiovascular events and death in obese patients with heart disease .

Market Outlook

Despite the cost-effectiveness, the report highlights affordability challenges, with fewer than 1% of eligible patients able to be treated at current net prices before crossing the ICER budget impact threshold of $880 million annually . This raises concerns about access to these medications for patients who need them most.

Impact on Pricing and Market

The final report, scheduled for release later this year, is expected to influence the pricing of these drugs. ICER's recommendations could impact the negotiations between drug manufacturers and healthcare payers, including Medicare, which is currently in talks with the federal government .

Conclusion

The ICER report underscores the potential of GLP-1 drugs in improving patient outcomes and reducing healthcare costs. However, the affordability challenges must be addressed to ensure these benefits are accessible to a broader patient population. The weight loss drug market, currently dominated by Eli Lilly and Novo Nordisk, remains promising, with the potential to reach a market size of over $100 billion by the end of the decade .

References:

https://www.reuters.com/business/healthcare-pharmaceuticals/pricing-group-says-weight-loss-drugs-becoming-more-cost-effective-2025-09-09/
https://pharmaphorum.com/news/icer-says-glp-1s-still-have-serious-affordability-issues
https://www.moomoo.com/news/post/40215264/record-tr4cking-news-nasdaq-closes-at-all-time-high-s-p-500-rise