Report: Traditional medicine costs more than specialist due to GLP-1 demand
Traditional drug spending outweighs specialty drug spending for the first time, largely due to demand for GLP-1, according to a new report from the Evernorth Research Institute.
The Evernorth Research Institute analyzes anonymous clinical and administrative data to understand trends and challenges that affect healthcare. Its new report, called “2025 Pharmacy In Focus Report”, is based on data collected from scientific literature, pharmaceutical claims, industry reports and stakeholder surveys.
Traditional medicines are used for common health problems such as infections, high blood pressure, diabetes and high cholesterol. In the past, their costs have remained stable because they are widely used and easier to manufacture than specialist drugs. However, in 2021, Semaglutide’s approval of chronic weight management changed things.
The annual growth rate of traditional drug spending increased from 2.1% in 2021 to 12.8% in 2024. This is an annual growth rate of 5% in 2021 and 4.9% in 2024.
Evernorth also found that weight-management drugs accounted for 46.8% of total drug spending increased in 2024. Researchers expect demand for GLP-1 will continue to increase, with the utilization rate of weight loss expected to increase by 73.1% in 2025.
In addition, in the long run, there are also questions about the value of GLP-1. About half of patients who use GLP-1 for weight loss stopped within one year. The reasons why they stop include side effects and financial and insurance barriers.
“While high costs may play a role in disruptions, the situation where side effects prompt patients to stop treatment should raise concerns among plan sponsors about the significant upfront investments needed to initiate these therapies,” Evernorth said.
GLP-1 is also becoming more and more popular among the younger generation. Gen Gen Alpha (14 years and under) led to an increase in GLP-1 usage, up 84.6% from 2023 to 2024, followed by 67.8% of Gen Z Gen (15-28), and Millennials (29-43) at 47.7%.
“Because of potential lifetime dependence and the comorbidities associated with these expensive treatments, early adoption of expensive treatments can create an unsustainable burden on health programs, employers and communities,” the report said.
Looking ahead, many other diseases are also considered, such as cardiovascular disease, chronic kidney disease and Alzheimer's disease. This could lead to further demand for the drug and increase the challenge of covering the drug, Evernorth said.
To address these challenges, the report provides some advice for healthcare stakeholders. This includes using real-world data to improve prescription guidelines and prioritizing prevention and lifestyle strategies, such as strengthening school nutrition and physical exercise programs.
Photo: Jason Dean, Getty Images
