The latest weight-loss drugs including Ozempic, Wegovy, Mounjaro, and Zepbound have list prices ranging from $900 to $1,500 for a one-month supply.
David Ricks, the CEO of Mounjaro and Zepbound maker Eli Lilly, explained why these medications are so expensive on the “In Good Company with Nicolai Tangen” podcast this week.
Developing a new drug costs about $3 billion, takes around 15 years, and has a high chance of failing, Ricks said. The huge costs, long timeframes, and slim probability of success means “the return on that risk needs to be substantial,” said the boss of America’s 10th-largest company that’s worth nearly $830 billion. The stock has risen 17% in the past year, and more than 500% since 2019.
Once a drug is approved and being used by millions, there will often be calls for cost-plus pricing, Ricks said. But without the prospect of large profits, “no one would have undertaken the risks to invent it.”
