Economic and health burdens of obesity far surpass costs of weight-loss medications, report finds

The rising healthcare expenditures and productivity losses attributed to the global obesity crisis significantly outweigh the cost of newly developed weight-loss medications, according to a recent report. The report also urges governments to prioritise obesity prevention by promoting healthier dietary choices and increased physical activity.

In several countries, including the UK, Germany, and the Netherlands, there is a clear economic argument for the use of these medications. The report reveals that the annual cost of the diabetes medication Ozempic, which is also prescribed for weight management, is considerably lower than the cost of additional healthcare required by individuals living with obesity. Though the cost of Wegovy, another weight-loss medication, is higher, it remains insignificant when compared to the overall societal and economic impact of obesity, as per research conducted by ING Bank and shared with The Guardian.

Both Ozempic and Wegovy are produced by Danish pharmaceutical company Novo Nordisk and have seen remarkable success. They are joined by other weight-loss drugs such as Zepbound and Mounjaro, developed by US-based pharmaceutical company Eli Lilly. These medications are administered via weekly injections and mimic the effects of a gut hormone known as GLP-1, which increases feelings of satiety, thereby promoting weight loss. Additionally, recent studies have demonstrated other health benefits beyond weight reduction.

Obesity rates have soared globally over recent decades, and today, there are more individuals classified as overweight than undernourished worldwide. The new class of GLP-1 medications may help counteract this trend. However, concerns persist regarding the long-term efficacy of these treatments, as well as their considerable cost, particularly in the case of Wegovy.

Obesity is associated with numerous serious health conditions, including cardiovascular disease, joint problems, and diabetes, all of which require costly medical interventions.

According to ING healthcare analyst Diederik Stadig, the overall cost of obesity in the UK amounts to £100 billion annually, with £19 billion of that sum being absorbed by the NHS. On an individual level, healthcare costs related to obesity amount to roughly €1,700 (£1,400) per person each year in the UK, compared with €2,400 in Germany, €2,300 in the Netherlands, and €2,500 in the United States.

In contrast, the annual cost of Ozempic for weight management in the UK is £830, while Wegovy costs £2,760. This compares with €1,100 for Ozempic in both Germany and the Netherlands, and a significantly higher €10,100 in the US. The cost of a year’s supply of Wegovy is €3,500 in Germany, €3,200 in the Netherlands, and a striking €14,500 in the US. The United States generally pays higher prices for pharmaceuticals.

The report’s analysis is based on the list prices of these drugs, which are often higher than the actual amounts paid.

Healthcare expenses represent approximately a quarter of the total economic cost of obesity, which also includes losses in productivity and personal expenses incurred by individuals living with obesity. These personal costs can involve additional transportation needs, specialised clothing, and home adaptations, Stadig explained.

“If the drugs are effective long term and help people lead healthier lives, there will be less productivity loss, fewer personal costs, and an improved quality of life. If you can address obesity for a significant number of individuals, it could not only alleviate much of their discomfort but also result in considerable savings for society,” Stadig stated.

Recent research conducted by the Institute for Advanced Studies in Vienna, which examined 26 European countries, found that people living with obesity are up to twice as likely to require time off work.

“Obesity can lead to more than 80 different illnesses, ranging from depression to heart attacks,” said Thomas Czypionka, head of the health economics and health policy research group at the institute. “Individuals affected by obesity tend to take more sick days. With labour shortages across Europe, this presents a serious problem for economies.”

Czypionka anticipates that the cost of obesity medications will decrease in the coming years as more products enter the market. However, in the meantime, he believes that governments will need to focus on providing these treatments to those individuals most at risk.

Stadig warned, however, that the long-term effects of the drugs remain uncertain. A study found that when individuals stopped taking semaglutide—the active ingredient in both Ozempic and Wegovy—they regained two-thirds of the weight they had lost within a year. Additionally, the drugs are associated with side effects, including nausea and stomach pain, which often lead individuals to discontinue their use.

Although medical professionals typically prescribe these weight-loss drugs alongside a programme of diet and exercise, Stadig emphasises that more needs to be done at a governmental level to tackle the obesity crisis. He suggested that taxation could be used as a tool to promote healthier eating habits, such as by eliminating or significantly reducing VAT on vegetables while imposing higher taxes on fast food.

Public figures have increasingly opened up about their experiences with semaglutide. Australian actor Rebel Wilson, who shed six stone through diet and exercise, disclosed that she briefly used Ozempic to help maintain her weight. Similarly, British broadcaster and actor Stephen Fry shared that the drug caused him to vomit up to five times a day. In contrast, TV personality Sharon Osbourne revealed in February that she had lost three stone over four months by self-administering Ozempic, but now finds it challenging to regain weight.

As obesity continues to impose significant costs on both individuals and society, the use of GLP-1 medications offers a promising, though expensive, tool to mitigate the burden. Governments must weigh the long-term implications of these treatments against the urgent need to address obesity and its associated economic and health challenges.