The news: Obesity drugs are cost-effective and provide good value, despite high price tags, according to preliminary analysis from the Institute for Clinical Economic Review (ICER). It plans to issue a full analysis by the end of the year.

Digging into the data: ICER determined Wegovy from Novo Nordisk and Zepbound from Eli Lilly are cost-effective when measured by their long-term benefits, but acknowledged they’re still not affordable.

Based on an analysis, these weight loss drugs offer significant health benefits beyond what can be achieved with only lifestyle changes. The weight loss they cause can improve conditions like diabetes, high blood pressure, heart problems, stroke, liver disease, and joint damage.

The study looked at the discounted prices of two popular weight loss drugs:

• Wegovy (semaglutide): costs about $6,830 per year.
• Zepbound (tirzepatide): costs about $7,973 per year.
• It's important to note that while the list prices are much higher, the actual cost is lower due to rebates and discounts. For example, some companies offer direct-to-consumer prices of about $499 per month.

The analysis also found that even at much higher prices, these drugs would still be considered a good value:

• Wegovy would still be effective at a price of up to $61,400 per year.
• Zepbound would still be effective at a price of up to $53,400 per year.