GLP-1 weight-loss drugs drive major shifts in U.S. healthcare landscape, Wells Fargo report says
Wells Fargo’s analysis finds that use of GLP-1 medications for obesity has more than doubled since 2022, pushing obesity treatments to become the largest late-stage drug pipeline segment and reducing bariatric surgery volumes.
A Wells Fargo report released Thursday highlights the rapid growth of GLP-1 medicines for weight loss and their impact on the American health-care system, where 40.3% of adults are classified as obese. Use of these drugs rose over 140% between 2022 and 2024, while bariatric surgery volumes fell 34.1% in the same period.
"GLP-1s may be marketed as weight-loss drugs, but they're rapidly becoming one of the most disruptive economic forces in healthcare," said John Teasley, market executive for Wells Fargo Healthcare Banking.
The analysis notes that hospitals are adapting to a shift from surgical to pharmaceutical treatment, with patients now having a reversible, medication-based option. Clinical data also suggest a 20% reduction in major cardiovascular events among overweight or obese adults without diabetes who use GLP-1s, which could lower demand for related procedures and readmissions.
Wells Fargo analysts say the expanding use of GLP-1s may alter management of obesity-related conditions such as joint replacements, sleep apnea and fatty liver disease, increasing the need for outpatient monitoring and medication management. The report cites a Deloitte study indicating that obesity drugs now comprise about 25% of the late-stage pharmaceutical pipeline, overtaking oncology, which fell to 20% from 32% in 2022.
"Obesity therapies have already taken cancer as the pharmaceutical industry's leading area of investment," Teasley added.
The firm concludes that health-care entities that reallocate capital toward obesity medicine, integrated cardiometabolic care and specialty pharmacy services are likely to benefit as the industry adjusts to the new treatment paradigm.