Technology
Monday, May 27th, 2024 2:47 pm EDT
Key Points
- Success with Ro Body Program: Gray Beard, a kindergarten teacher, successfully lost 40 pounds using the Ro Body Program, which provides GLP-1 prescriptions, monthly doctor consultations, educational resources, and insurance navigation. She pays $30 per month for the medication and $145 for the program.
- Rise of GLP-1 Programs: Digital health companies like Ro, Calibrate, and Hims & Hers are capitalizing on the demand for GLP-1 medications (e.g., Wegovy, Ozempic) for weight loss, offering comprehensive programs that include prescriptions, coaching, and support. The GLP-1 market is expected to grow significantly, with 15 million U.S. adults predicted to use these drugs by 2030.
- Challenges and Market Dynamics: Companies face challenges such as supply shortages, high costs, and insurance coverage issues. Despite these hurdles, the industry continues to grow, with companies expanding their offerings and investors showing strong interest. Ro, for instance, has raised significant funding and continues to invest in marketing and operational tools to manage supply issues.
Gray Beard, a kindergarten teacher in Charlotte, North Carolina, struggled with weight loss despite trying multiple programs over the years. Her breakthrough came when she discovered the Ro Body Program through an Instagram promotion, which offered access to GLP-1 medications, a popular but costly class of obesity treatments. Beard’s previous attempts to get a GLP-1 prescription were thwarted by insurance hurdles. However, through Ro’s program, she could get a prescription for medications like Wegovy or Ozempic, receive monthly consultations with a doctor, and access various support services, including one-on-one coaching and insurance navigation assistance. Starting the program at 210 pounds, Beard has lost 40 pounds and now serves as an ambassador for Ro, paying $30 per month for the medication and $145 monthly for the program.
Ro, initially focused on treatments for erectile dysfunction, has expanded into obesity management, capitalizing on the high demand for GLP-1s. Analysts predict a significant market growth, expecting 15 million U.S. adults to use anti-obesity drugs by 2030, generating $100 billion annually. Other companies like Calibrate, Sesame, Omada Health, Noom, Hims & Hers, Teladoc Health, and WeightWatchers have also entered the GLP-1 market, creating programs tailored to patients on these medications. Hims & Hers, for instance, saw a 28% stock increase after introducing compounded GLP-1 injections and ensuring a steady supply.
Supply shortages and counterfeit issues have been significant challenges in the GLP-1 market. Companies like Ro have developed strategies to navigate these issues, such as transferring prescriptions to different pharmacies and expanding their medication offerings. Despite these hurdles, the demand for GLP-1 treatments remains strong, driven by their effectiveness in weight loss and other health benefits. Insurance coverage remains a complex issue, with some employers and federal programs reluctant to cover the high costs of weight loss drugs. However, commercial savings programs from manufacturers like Eli Lilly and Novo Nordisk aim to make these medications more accessible.
Calibrate, one of the pioneers in combining GLP-1s with one-on-one coaching, reports substantial weight loss success among its members. Despite financial and operational challenges, the company continues to promote its program under new ownership. Similarly, WeightWatchers has adapted its offerings to support members using GLP-1s, emphasizing the need for tailored behavioral programs alongside medication.
Overall, the introduction of GLP-1 medications has significantly impacted the weight loss industry, offering new hope to individuals like Beard who have struggled with traditional methods. Despite ongoing challenges related to supply, cost, and insurance, the industry continues to innovate and expand, providing patients with more effective tools for managing their weight and health.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/25/digital-health-companies-are-launching-programs-around-glp-1s-.html
