For the primary time, conventional drug spending has exceeded specialty drug spending, largely as a result of demand for GLP-1s, in response to a brand new report from Evernorth Analysis Institute.
Evernorth Analysis Institute analyses anonymized medical and administrative knowledge to grasp tendencies and challenges affecting healthcare. Its new report, known as the 2025 Pharmacy in Focus Report, relies on knowledge collected from scientific literature, pharmacy claims, trade reviews and stakeholder surveys.
Conventional medication are used for frequent well being issues like infections, hypertension, diabetes and excessive ldl cholesterol. Up to now, their prices have remained steady since they’re broadly accessible and simpler to fabricate than specialty medication. Nevertheless, the approval of semaglutide for persistent weight administration in 2021 modified issues.
The annual progress fee of spending for conventional medication elevated from 2.1% in 2021 to 12.8% in 2024. This compares to specialty, which had an annual progress fee of 5% in 2021 and 4.9% in 2024.
Evernorth additionally discovered that medication for weight administration represented 46.8% of the overall improve in drug spend in 2024. The researchers anticipate GLP-1 demand to proceed to rise, with a projected 73.1% improve in utilization for weight reduction in 2025.
As well as, there are additionally questions in regards to the worth of GLP-1s in the long run. About half of sufferers utilizing GLP-1s for weight reduction cease inside a 12 months. Their causes for stopping embody uncomfortable side effects and monetary and insurance coverage limitations.
“Whereas excessive prices could play a task in discontinuation, instances the place uncomfortable side effects immediate sufferers to cease remedy ought to elevate considerations for plan sponsors in regards to the important upfront funding required to provoke these therapies,” Evernorth mentioned.
GLP-1s are additionally gaining reputation amongst youthful generations. Gen Alpha (14 and below) leads the rise in GLP-1 utilization with an 84.6% improve from 2023 to 2024, adopted by Gen Z (15-28) at 67.8% and millennials (29-43) at 47.7%.
“Early adoption of expensive remedy can create an unsustainable burden on well being plans, employers and communities due to potential lifelong reliance and the associated comorbidities of those expensive remedies,” in response to the report.
Trying forward, GLP-1s are additionally being thought of for quite a few different circumstances like heart problems, persistent kidney illness and Alzheimer’s. This might result in additional demand for the drug and add to the challenges of protecting the drug, Evernorth acknowledged.
To fight these challenges, the report offers a number of suggestions for healthcare stakeholders. This consists of utilizing real-world knowledge to enhance prescribing tips and prioritizing prevention and way of life methods, equivalent to strengthening faculty vitamin and bodily exercise applications.
Photograph: Jason Dean, Getty Photographs
