The GLP-1 Shortage: What It Means and Why It Still Matters

Over the last few years, GLP-1 and GLP-1 receptor agonists like Ozempic, Wegovy, Mounjaro, and Zepbound gained widespread traction for tackling obesity and supporting long-term weight loss efforts*. They decrease appetite, regulate blood sugar, and deliver consistent weight loss results for individuals struggling to manage their metabolic health. However, with the surge in demand comes strain on manufacturers. A recent report from IQVIA showed that as of February 2024, there were nearly 700K new GLP-1 agonist prescriptions written in the U.S.¹ Supply chains are scrambling to scale up production while facing global raw material shortages, making it harder to keep shelves stocked. 

Compounding pharmacies have played a critical role in increasing access through affordable alternatives during this shortage, but that will soon change. FDA regulations only allow compounding when a brand name drug is in shortage. As GLP-1 medications come off the shortage list, companies are required to stop selling compounded versions. 

The FDAs Decision Will Have Long-term Implications

In December 2024, the FDA announced Zepbound and Mounjaro were no longer in shortage and mandated pharmacies cease compounding by February 18, 2025. The FDA gave companies until March 19, 2025 to stop distribution. This change could significantly disrupt accessibility for consumers and interrupt current treatment protocols for those taking a GLP-1 compound.

If people don’t have access to compounded GLP-1s, we’re facing a healthcare crisis with unprecedented cost barriers that will prevent consumers and businesses from benefiting from these vital medications. The risks include: 

• Poorer outcomes and higher healthcare costs – GLP-1 medications are now an essential tool for treating many of today’s biggest health epidemics, including obesity which affects more than 40% of the U.S. adult population.² These medications offer a proven path to better health outcomes, reducing the risk of complications associated with chronic conditions. If people can’t access these much needed medications, they risk reversing the progress they’ve made on their health, which can lead to increased healthcare utilization and higher costs for employers, health plans and patients. 

• Greater health inequities – Branded GLP-1 medications are expensive. According to a recent KFF study, although few insured adults paid the full cost of these medications, 54% still said affording the drugs was difficult.³ Without a more affordable alternative, the cost could prove to be prohibitive, limiting access to GLP-1 medications to only those who can afford higher out-of-pocket costs. 

The benefit of GLP-1 compounds

Compounded GLP-1 medications have provided a much-needed lifeline for Americans who can’t afford the high out-of-pocket costs of brand name solutions. This is especially important for weight management as many health insurance companies and employers don’t cover GLP-1 medications for weight loss alone. Pharmacy Benefit Managers (PBMs) primarily offer access to branded medications. GLP-1 compounds can provide a reliable and cost-effective alternative to their brand name counterparts, but they’re not offered through traditional PBM arrangements. It’s important to note that compounded GLP-1s should come from an FDA regulated 503B pharmacy as they uphold rigorous standards of safety and efficacy.

For employers looking to provide affordable access to GLP-1 medications, compounded GLP-1s have emerged as an innovative solution that can benefit both the employer and the employee. By equipping their workforce with the solutions they need to manage their weight and improve cardiometabolic health, organizations can reduce costs associated with obesity-related illnesses. Additionally, when employees are healthier, companies may benefit from reduced absenteeism, improved productivity, and lower healthcare costs. 

GLP-1 compounds offer both efficacy and affordability. They help ensure that patients have consistent access to the support they need, even during shortages or regulatory transitions.

Noom Health’s Solution to the GLP-1 Crisis

Noom Health offers two options for GLP-1 access—giving organizations the flexibility to provide cost-effective weight management solutions to their workforce across multiple pathways.

Noom Weight with GLP-1Rx: Noom Weight with GLP-1Rx is for employers seeking to offer affordable weight loss options without directly covering GLP-1 medications. It combines Noom’s proven behavioral program, Noom Weight, with an option for employees to get a self-pay discount for non-branded GLP-1s and other anti-obesity medications (AOMs). Employees can supplement this program with HSA/HRA contributions, resulting in additional healthcare savings over time.

Noom Med with SmartRx: Noom Med with SmartRx is designed for employers who still want to cover brand name GLP-1 medications while effectively mitigating costs. With SmartRx, employers have the opportunity to cover brand name GLP-1s for their populations, but they decide the level of support and financial assistance they want to provide, resulting in a planned investment rather than surprise costs. Noom Med with SmartRx includes Noom’s behavioral change expertise with medication management to provide a holistic approach to weight loss and metabolic health and also monitors medication-taking success and refills in between virtual visits to improve patient adherence and persistence to therapy.

The cornerstone of the Noom Med + SmartRx solution is a sophisticated risk stratification model that determines the most appropriate intervention for each person. High-risk individuals get the option to access a GLP-1 with behavioral health support. Those with intermediate risk get access to a 90-day non-GLP-1 AOM before they are considered for GLP-1 access. Low-risk individuals follow a similar course with 180 days of a non-GLP-1 AOM before GLP-1 consideration. This approach ensures the right solutions are matched to the right people at the right time.

The Future of Affordable Weight Management

As the GLP-1 shortage continues to evolve, one thing remains certain—access to these game-changing medications is essential to improving health outcomes and reducing healthcare costs for both individuals and organizations. Employers can play a critical role in shaping the future of healthcare by demanding the availability of and investing in weight management solutions that prioritize affordability, effectiveness, and access for all. 

References

*Not all of these medications are currently FDA approved for weight loss.

1. IQVIA Institute for Human Data Science. The Use of Medicines in the U.S. 2024: Usage and Spending Trends and Outlook to 2028. April 2024. Available from www.iqviainstitute.org.
2. CDC. “Obesity and Severe Obesity Prevalence in Adults: United States, August 2021–August 2023.” CDC.gov, 2024, www.cdc.gov/nchs/products/databriefs/db508.htm.‌
3. Montero, Alex, et al. “KFF Health Tracking Poll May 2024: The Public’s Use and Views of GLP-1 Drugs.” KFF, 10 May 2024, www.kff.org/health-costs/poll-finding/kff-health-tracking-poll-may-2024-the-publics-use-and-views-of-glp-1-drugs/.