Health insurer Cigna (NYSE:CI) announced on Wednesday that the proportion of employers offering coverage for obesity drugs, such as Wegovy from Novo Nordisk (NVO) and Zepbound from Eli Lilly (NYSE:LLY), has remained flat compared to last year.
Cigna (NYSE:CI) CFO Brian Evanko made the remarks during the Morgan Stanley Annual Healthcare Conference, noting that in its Evernorth health services unit, over 50% of its clients, including large employers and health plans, cover the popular drug class also known as GLP-1s.
Its Cigna Healthcare division, which mainly focuses on smaller employers, has roughly 15% – 20% of clients offering obesity drug coverage, he added.
“Some of the employers we cover have higher rates of turnover on their employee base, and so they have questions about whether they’ll see the return or whether the return will be the benefit of a different employer in the future,” Evanko said, according to Reuters.
Even as the percentage of employers covering the obesity drugs remains flat, Cigna (NYSE:CI) cites continuing demand for the blockbuster medicines as more patients opt for the treatments, which, according to clinical studies, lead to 15% – 20% weight loss on average.
However, Novo Nordisk (NVO) recently slashed its full-year growth outlook, citing, among other things, headwinds to its obesity franchise. While Eli Lilly (NYSE:LLY) boosted its guidance, the stock has come under pressure amid disappointing trial data for its oral weight loss drug, orforglipron.