Medicare to Offer Weight Loss Drugs Temporarily; Novo Nordisk Plans China Expansion
Medicare will begin covering weight loss drugs for adults aged 65 and older starting next month through a temporary government demonstration program. This initiative, called "Bridge," bypasses existing legal prohibitions against Medicare paying for obesity drugs and has been extended after private insurers declined to participate in a voluntary coverage plan. Concurrently, Novo Nordisk announced plans to seek Chinese regulatory approval for its Wegovy weight loss pill soon, aiming to compete with Eli Lilly in the country's pharmaceutical market.
Weight loss drugs will become available to adults aged 65 and older through Medicare starting next month. This initiative is part of a temporary government demonstration program, named "Bridge," which is currently set to run until the end of next year.
By law, Medicare is typically prohibited from covering obesity drugs. The current administration is implementing the "Bridge" program to circumvent this legal restriction. Originally, Medicare had intended for private insurers to voluntarily cover these drugs under a separate three-year program called "Balance," but insurers opted not to participate, leading to the extension of the transitional "Bridge" program.
Separately, Novo Nordisk's CEO, Mike Doustdar, stated that the company plans to seek Chinese regulatory approval for its Wegovy weight loss pill "very soon." This strategic move aims for Novo Nordisk to compete with Eli Lilly in China, which is the world's second-largest pharmaceutical market.
The patent for semaglutide, the active ingredient in both Wegovy and Ozempic, expired in China in March. While Novo Nordisk retains regulatory data protection until early next year, Doustdar anticipates competition from generic drugmakers beginning in the second quarter of next year. Novo Nordisk previously secured early approval for its Wegovy pill in the U.S. and the U.K., launching it in the U.S. this year, while Eli Lilly obtained U.S. approval for its oral drug orforglipron in April.
(Source: STAT News)
