Ozempic, other weight-loss drugs face backlash from companies, lawyers. What you need to know

What a difference a month makes in the never-boring world of weight-loss drugs. Last month—when the news was so bullish that semaglutides (or GLP-1s, as this class of drugs is known) such as Ozempic and Wegovy might also cure all addiction—Morgan Stanley analysts raised their estimate for the size of the anti-obesity market to $77 billion worldwide in 2030, up $23 billion from the previous forecast.

Well, like a yo-yo diet, things have come back to earth. In the time someone on these drugs might have lost several pounds, the headlines are no longer as supportive as that market forecast. A lawsuit against Novo Nordisk, the maker of Ozempic, and Eli Lilly (which manufactures another GLP-1 named Mounjaro), alleges that the drugs cause gastroparesis, a stomach disorder, as a side effect.

Last month I wrote about how some employers are finding ways to cover weight-loss drugs for their workers who want to take them; now other employers are cutting off access to those same medications. Finally, legacy weight-loss companies such as WeightWatchers and most recently Noom are pivoting to offer access to GLP-1s in addition to the behavioral programs (read: willpower) they previously prescribed.

Maybe your company isn’t going to cover Ozempic prescriptions after all

I previously wrote about how more employers are looking into covering the cost of weight care, which could include prescriptions to GLP-1s (Ozempic, Wegovy, Saxenda) in their health plans. More, though, is not all, or maybe even most.

The Wall Street Journal reports that as costs mount—and demand soars—for weight-loss drugs like Ozempic and Wegovy, healthcare plans are restricting coverage to save money. While the drugs help people lose a significant amount of weight, employers may not be willing to pay their bills.

Ozempic can cost as much as $1,350 per month for a patient, and the increased demand has put a financial strain on many employers covering their employees’ healthcare plans. The University of Texas announced it would end coverage of Wegovy and Saxenda in its health plan after costs tripled to roughly $5 million per month. The University of Texas’s health plan says that so far it has not seen any of the expected reduction in costs for other health conditions that weight loss could avert. The University of Michigan raised its copay for Wegovy and Saxenda to $45 from $20 a month.

The makers of Ozempic and Mounjaro are getting sued over side effects

Ozempic, Wegovy, and other GLP-1s already have well-known side effects, including nausea, diarrhea, vomiting, and potentially suicidal ideation.

But now drugmakers Novo Nordisk and Eli Lilly are being sued by a Louisiana woman for failing to warn patients of another gnarly side effect: stomach paralysis. Jaclyn Bjorklund’s lawsuit claims that she has suffered severe illness and injuries—including vomiting so much that her teeth fell out, stomach pain, gastrointestinal burning, and multiple hospital visits—from using Ozempic and Mounjaro over the course of a year and a half.

Bjorklund’s lawsuit claims that both companies “knew of the association between the use of GLP-1 receptor agonists and the risk of developing severe gastrointestinal issues, including gastroparesis and gastroenteritis,” and that warnings provided to patients are inaccurate.

Bjorklund alleges that the medication has caused her to develop gatroparesis—a disorder that slows or stops the movement of food from your stomach to your small intestine—although she has not yet officially been diagnosed with the illness. She is seeking financial compensation from both companies.

Her personal injury law firm, Morgan & Morgan, told The New York Post that the firm has received 500 similar inquiries from clients across 45 states, along with claims of injuries that it believes are caused by other weight-loss drugs, including Wegovy, Rybelsus, and Saxenda.

CNN reached out to Ozempic maker Novo Nordisk, which highlighted in a statement that Ozempic’s prescribing information already carries a warning for GI issues. Eli Lilly—Mounjaro’s manufacturer—provided a statement to The Hill declaring that patient safety is the company’s top priority and it is actively monitoring side effects of all of its medications.

Noom joins WeightWatchers in offering prescription weight-loss drugs

Both weight-loss companies spent years touting self-discipline and restrictive diets as the solution to weight loss. But now, as GLP-1s become popular, willpower doesn’t seem as attractive.

Two weeks ago, Noom appointed a new CEO for its digital wellness platform. Geoff Cook comes to the company after serving as cofounder and CEO of the Meet Group, an operator of online dating and social media apps such as MeetMe, Skout, and Growlr, among others. (Interestingly, the CEO of another weight-care-management startup, Found’s Sarah Jones Simmer, has a similar background, having previously served as COO of dating app Bumble.)

In May, Noom launched a telehealth service to offer weight-loss drugs including Ozempic and Wegovy to patients of its behavioral-change program. Earlier this year WeightWatchers acquired Sequence, which also offers telehealth consultations with doctors who can prescribe weight-loss drugs.

Women are more interested in GLP-1s than men

Unsurprisingly, in reporting by The 19th based on polling from the nonpartisan health policy research group KFF, weight-loss drugs such as Ozempic are more likely to interest women than men.