GLP-1 Drugs Could Save $192K in Lifetime Medical Costs, Study Finds

A new study from the National Bureau of Economic Research (NBER) reveals that middle-aged adults taking GLP-1 drugs for obesity can save over $192,000 in lifetime medical costs, with even higher savings for those without college degrees. The lead author hopes that quantifying the financial benefits will lead to better access to these medications.

Study Details

The NBER paper analyzed lifetime medical costs for obese individuals taking GLP-1 drugs such as tirzepatide (marketed by Eli Lilly as Mounjaro and Zepbound). The study found savings of up to $192,000 for middle-aged adults, with higher amounts for those without college degrees.

Context

These findings come amid surging demand for GLP-1 drugs, used for type 2 diabetes and obesity. Eli Lilly (ticker: LLY) is a key player in this space alongside Novo Nordisk. However, high costs have been a barrier to access.

What This Means for Investors

The study underscores the potential economic value of GLP-1 drugs, which could support sustained demand and justify pricing. For Eli Lilly investors, this may reinforce confidence in Zepbound and Mounjaro sales growth. However, regulatory and competitive challenges remain.