Interesting! I agree that Novo having a head start on approval for an oral glp1 drug gives them an advantage in creating and retaining that market. I do still suspect though that some large percentage of DTC customers would be willing to switch to whatever drug, oral or injectable, is cheaper if it was a $100/month+ difference, which creates the space for DTC price competition.
Rebates are going away on Medicare. Without them the financials for insurance companies to cover them go belly up. Only much lower net prices will make it financially viable to cover these drugs.
I’m not even getting into some of the weirder aspects of the Ira that de-incentivize low copays.
The prices have to come down to where the compounders are or every pbm in Medicare is going to jack up the ded/copays/pa.
Thanks for the GLP commentary Ashwin! I enjoy reading your analysis. I tend to agree with your analysis and am a bit surprised about NVO and LLY stocks are both trading at a bit of a discount, given what seems to be on the horizon. Of course there's not an absolute certainty but this *feels* like one of those big discoveries that sets up long-term successes.
I think Medicare prohibits payment for these drugs most of the time. To maximize profits it would seem that these companies would want to change that. Please explain
Oo interesting! What are your thoughts on Novo Nordisk and Eli Lilly now both using 9amHealth and Form Health as their telehealth partners?
Interesting! I agree that Novo having a head start on approval for an oral glp1 drug gives them an advantage in creating and retaining that market. I do still suspect though that some large percentage of DTC customers would be willing to switch to whatever drug, oral or injectable, is cheaper if it was a $100/month+ difference, which creates the space for DTC price competition.
Rebates are going away on Medicare. Without them the financials for insurance companies to cover them go belly up. Only much lower net prices will make it financially viable to cover these drugs.
I’m not even getting into some of the weirder aspects of the Ira that de-incentivize low copays.
The prices have to come down to where the compounders are or every pbm in Medicare is going to jack up the ded/copays/pa.
Thanks for the GLP commentary Ashwin! I enjoy reading your analysis. I tend to agree with your analysis and am a bit surprised about NVO and LLY stocks are both trading at a bit of a discount, given what seems to be on the horizon. Of course there's not an absolute certainty but this *feels* like one of those big discoveries that sets up long-term successes.
I think Medicare prohibits payment for these drugs most of the time. To maximize profits it would seem that these companies would want to change that. Please explain