High Cost of Weight Loss Drugs Drives Employers to Require Nutrition Counseling, In Boost for Startups

A few years ago, when virta health fourth and ceo smi inkinen approached employers about leveraging the company’s Nutrition-Orned Diabetes Program for Obsite-RED N’T Ready to Commit.

Now, More Employers are all in on Nutritional Counseling and Coaching as They Grapple With Rising Costs for Diabetes and Weight Loss Drugs Drugs Such As Novo Nordisk’s Ozempic and wegovy and Eli lilly’s Mounjaro and Zepbound.

“Our goal is not to drive the maximum number of glp-1 prescriptions, but we are the telemedicine company of choice for many employees to responsibly use there drugs, and then ALSO GET MET MET MEMBERS Sustain the weight loss nutritionally, ” Said inkinen.

The company published a peer-reviewed study A year ago which found that patients on Virta’s Nutrition-Counseling Programs MainTailed Weight Loss One Year after they stopped Using GLP-1. But inkinen says less than 10% of the company’s weight loss enrollies are using the popular drugs – Most Opt for Nutrition Counseling Alone and Styl Lose an average of 13% of their website of one.

“Quite frankly, despite the message that maybe the pharma companies are pushing, nobody really wants to be on these drugs forever, if you get the choice and two

For Virta, The Demand for Such Services Resulted in Record 60% Revenue Growth in 2024 to more than $ 100 Million, according to Inkinen.

He said the 10-year-old startup is on pace to be profitable in the second half of this year.

Companies surveyed by the Business group on health Said Glucagon-Like Peptide Medications, Commonly Known as GLP-1 Drugs, Are Now a Top Driver of Employer Plan Drug Costs, With 96% of that Surveyed Expressing Concers about the Longe Plications.

As a result, more employers are looking to utilization management strategies such as Nutrition Counseling and Coaching Services.

“Most Employers Want their Plan Members to have access to weight-management medicine options, such as glp-1s, however, they also want to ensure that it’s clinical apps Estyle modification supports to ensure long-term safety and Efficiency for the Individual, “said Randa Deaton, Vice President of Purchaser Engagement with Purchaser Business Group on Health.

YET, Using Theose Programs Sometimes Result in New Headwinds when it Comes to Pricing for GLP-1s in his Pharmacy Benefits Plans, Deaton Notes.

“We’ve seen that pbms and drug manufacturers have ben revising their rebates when employers are required Place the right programs to support their works and family Members, “She said.

One of Virta Health’s Rivals, Omada Health, is also seeing strong demand for its glp-1 Weight Loss Loss Management Program, After Partnering With Cigna’s Evernorth Pharmacy Benefits Division on a Program Called encirclerx. Program Enrollment Went from 2 Million Covered Lives in the Second Quarter of 2024 to 8 Million in the Third Quarter, According to CIGNA CEO David Cordani.

“The Market Continues to Absorb The Challenges of Affordability” of GLP-1 Drugs and is Looking for a more a more value-based approach, cordani told analysts on the company’s callings call.

“Clients are observing, and physicians are observing the start -and-stop dynamic that is transpiring for some patients, which also doesn’T generate the desired or intended outcomes,” Hey.

For Both Virta and Omada, The GLP-1 growth dynamic is fueling speculation that startups, which are both over a decade old, even even go public this year-if market conditions are righted.

Omada Health Reportedly Filed A Confidenificial Registration to Go Public with the Securities and Exchange Commission Last Summer, According to business insuranceThe company has declined to comment on the report.

Virta health was valued at $ 2 billing Folling its last round of funding in 2021. It is inkinen’s second story. He was one of the co-founders of Online Real Estate Firm Trulia, which will public in 2012 and was later boght by rival Zillow,

As for Virta ipo Plans, Inkinen Says for Now He’s Focused on Growing the company.

“If you have a thing that’s working, it is 1,000 Times Easier to Just Scale Your Thing, Your Team, Your Culture,” He said.

Correction: An earlier version of this story incorrectly attributed a business group on health survey to a different organization.