Waltz dances into direct-to-employer sales of obesity drugs

With direct-to-consumer (DTC) sales of weight-loss therapies in the headlines almost every week, Waltz Health has entered the market with a new model – targeting employers.

The direct-to-employer (DTE) is an industry first for FDA-approved weight-loss drugs like Novo Nordisk's Wegovy (semaglutide) and Eli Lilly's Zepbound (tirzepatide), according to the company, and is designed to give self-insured employers "a new pathway to deliver coverage for these medicines."

Chicago-based Waltz Health, which was bought by pharmaphorum parent EVERSANA in August for an undisclosed sum, is a digital health company that offers AI-driven marketplaces intended to lower overall drug costs.

It launched in 2022 with a search engine that can be used by pharmacies to find their customers the lowest cost possible for their medicines, and has added to its AI prescription-routing capabilities since then to include offerings for other sectors, including health plans and employers.

The new DTE platform for weight-loss medicines is due to launch on 1st January and will provide access to them with "clinical safeguards, transparent pricing, and end-to-end employee support," according to Waltz Health. Features will include real-time eligibility screening, pharmacy routing, prescription adjudication, and patient engagement services.

The emergence of GLP-1 agonists and other incretin-based therapies has started to transform the supply chain for medicines in the US, driven by the willingness of individuals to self-pay for access, and pharma companies have now started to launch DTC channels for an expanding range of products.

Next year, the channel looks set for further disruption with the launch of TrumpRx, a DTC channel being set up by the Trump administration, which has already signed various deals with pharma manufacturers.

Waltz Health thinks DTE will be the next major development in US medicine supply, once again driven by the weight-loss category, as employee expectations around access to these medicines have risen sharply in the past year, with research suggesting that many would even consider changing jobs to gain coverage.

"Obesity management medicines are driving a major shift in care expectations, and employers are actively searching for solutions that make coverage both clinically responsible and financially viable," said Mark Thierer, the company's co-founder and chief executive.

"This model equips employers with the structure and visibility they need, while offering employees a seamless experience and a covered benefit they can actually use," he added.

According to data reported earlier this year by the International Foundation of Employee Benefit Plans (IFEBP), while more than half of corporate health plans will cover GLP-1 medicines for type 2 diabetes, only around a third will cover their use for weight management.

Novo Nordisk has already agreed to participate in the DTE model, and Ed Cinca, its head of marketing and patient solutions in the US, said the company "wants people who need weight management to have frictionless access to treatment, and know they are getting authentic FDA-approved medicine."

Waltz Health said, meanwhile, that it is also working with Lilly to expand access to its obesity management medicines.

Kevin Hern, senior vice president at Lilly Employer, said: "Employers continue to tell us they want to better support their employees' health, but face real challenges in providing coverage for obesity management medicines."

He added: "We're excited to collaborate with organisations that share our commitment to removing friction and streamlining options for employers to expand access to obesity management medicines for people who need them."