Popular GLP-1 weight-loss injections are now delivering greater value, according to a new report by a leading pharmaceutical pricing watchdog.

The Institute for Clinical and Economic Review (ICER) said in a draft assessment published Tuesday that falling prices and proven heart-health benefits have boosted the cost-effectiveness of the drugs.

Topping the list for value for money is semaglutide (marketed as Ozempic and Wegovy by Novo Nordisk) and tirzepatide (Mounjaro and Zepbound by Eli Lilly), noting they now outshine lifestyle changes like diet and exercise in economic value.

ICER’s draft highlights significant price reductions since 2022: semaglutide now costs around $6,830 annually and tirzepatide about $7,973, though consumers typically pay close to $6,000 per year.

“Prices have come down a ton,” ICER Chief Medical Officer Dr. David Rind told Reuters . Yet, due to high demand, patients are having “a lot of problems with affordability of these drugs,” he said.

The report further notes that semaglutide has demonstrated cardiovascular benefits, while tirzepatide, though yielding greater weight loss with possibly fewer side effects, hasn’t yet shown the same level of heart-health evidence.

An oral version of semaglutide also receives attention in the report. While it’s deemed cost-effective compared to lifestyle-only approaches, it trails behind the injectable version in economic efficiency.

Despite improvements, ICER warns that the surging use of GLP-1 treatments contributes to soaring drug spending in the U.S. — which climbed to approximately $72 billion in 2023 — posing affordability challenges for insurers and employers. Many employers may consider reducing healthcare benefits due to the growing financial strain.

In light of these findings, ICER stresses the importance of developing a coordinated national strategy to ensure these drugs remain accessible and affordable for those who would benefit the most. The final version of the report will follow a public deliberation scheduled for November.

Affordability has also been an obstacle to rolling out the drugs in developing economies.

The World Health Organization announced on Friday that it added GLP-1 weight loss drugs to the Essential Medicines list , which should improve access to the treatments in poorer countries. WHO added the active ingredients in Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro to the list for the treatment of type 2 diabetes when cardiovascular disease, chronic kidney disease, or obesity are also present. However, the agency stopped short of approving the drugs for obesity alone.

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“Diabetes and obesity are two of the most urgent health challenges facing the world today,” WHO said in a press release. It noted that more than 800 million people were living with diabetes in 2022, with half going untreated, and more than one billion people worldwide are affected by obesity.

WHO blamed the high prices of the GLP-1 medicines for limiting access. “Prioritizing those who would benefit most, encouraging generic competition to drive down prices and making these treatments available in primary care — especially in underserved areas — are key to expanding access and improving health outcomes.”

The Essential Medicines list, now consisting of 523 medicines for adults and 374 for children, is a catalog of drugs that WHO believes should be available in all functioning health systems, regardless of cost. The list, which is updated every two years, has been adopted in over 150 countries and serves as a basis for public health system procurement and health insurance reimbursements.

—Additional reporting by Catherine Arnst