Curious to hear how you see Ozempic and others impacting supply and demand in the cpg industry. Large cpgs are already anticipating an impact but are they overreacting?
Great question. In the short to med term they are definitely overreacting. But in the long term, this is a real question and "concern" for CPGs, primarily those that thrive on somewhat addictive behavior. The main questions are regarding side effects and adherence. In the current mechanism, adherence is low over time, but even these will evolve.
Insurance companies could play an indirect pivotal role, perhaps? Rising prices with this demand shock might lead to insurance companies to reassess coverage policies, potentially influencing patient access and affordability for Ozempic. Plus, “off-label” use, such as Ozempic for weight loss, probably has different reimbursement conditions not favoring users of Ozempic for weight loss. Insurance companies could almost act like automatic stabilizers, balancing seekers of Ozempic for weight loss versus for type 2 diabetes. Thank you for another great thought provoking read!
Excellent read. “Articulate and detailed”
Curious to hear how you see Ozempic and others impacting supply and demand in the cpg industry. Large cpgs are already anticipating an impact but are they overreacting?
Great question. In the short to med term they are definitely overreacting. But in the long term, this is a real question and "concern" for CPGs, primarily those that thrive on somewhat addictive behavior. The main questions are regarding side effects and adherence. In the current mechanism, adherence is low over time, but even these will evolve.
Insurance companies could play an indirect pivotal role, perhaps? Rising prices with this demand shock might lead to insurance companies to reassess coverage policies, potentially influencing patient access and affordability for Ozempic. Plus, “off-label” use, such as Ozempic for weight loss, probably has different reimbursement conditions not favoring users of Ozempic for weight loss. Insurance companies could almost act like automatic stabilizers, balancing seekers of Ozempic for weight loss versus for type 2 diabetes. Thank you for another great thought provoking read!