Morgan Stanley analysts predict the weight loss drug market will hit $77 billion by 2030, MarketScreener reported July 21.
The financial services firm had previously estimated the market size by 2030 would be $54 billion, but surging demand for the medications led it to raise its forecast.
According to the report, Novo Nordisk's Wegovy may have already hit $7 billion in sales this year if there were no supply shortages for the drug.
"The greater focus on weight management has spilled over into an increasingly weight-centric approach to treating diabetes. We anticipate that over the next 24 months, this weight-centric focus will broaden into new health complications, including heart failure, sleep apnea and kidney disease, which will expand reimbursement into the U.S. Medicare population," the analysts wrote.
Private insurers often do not cover GLP-1 drugs for weight loss only, though they often cover the same drugs to treat Type 2 diabetes. Ozempic, Trulicity, Victoza and Mounjaro are FDA-approved to treat Type 2 diabetes, and Wegovy and Saxenda are approved for weight loss.
In a June survey from the Pharmaceutical Strategies Group, 49 percent of plans surveyed said they currently cover medications for weight loss, compared to 41 percent of employers.
Medicare is barred from paying for prescription weight loss drugs, though a bill filed in the Senate on July 20 aims to lift the ban. Mounjaro, manufactured by Eli Lilly, is expected to gain FDA approval to be used for weight loss in the coming months.