Virtual marketplace Sesame rolled out a new weight loss program that gives eligible consumers access to compounded semaglutide, an ingredient in blockbuster obesity drugs Wegovy and Ozempic, for $249 a month.
As consumers' appetite for weight loss drugs continues to grow, many virtual care companies are jumping in to offer compounded GLP-1 medications as the branded drugs are often in short supply. The branded drugs also can be more expensive.
As the weight loss drug market grows, some virtual care players seem to be competing on price.
Sesame unveiled on Wednesday its Success by Sesame clinical, direct-to-consumer weight loss program. The company is making compounded semaglutide available to clinically eligible customers "at cost," with no retail price markup.
The price tag on branded weight loss drugs like Wegovy can total more than $1,000 a month per person without insurance.
The price of Sesame's program, which includes clinical oversight from a board-certified provider, is $249 per month.
Hims & Hers and Ro also offer direct-to-consumer weight loss programs and, for eligible consumers, access to compounded semaglutide drugs. Ro also provides access to branded weight loss drugs like Wegovy and Ozempic.
Sesame claims its program is 35% to 45% less expensive than monthly programs from Ro or Hims & Hers.
Hims & Hers launched its weight loss program in December and recently added compounded GLP-1 medications to its offerings. Through Hims & Hers, weight loss medications start at $79 per month for oral medication kits and $199 per month for compounded GLP-1 injections, according to the company. Pricing includes unlimited medical consultations with a licensed provider, the company said.
Ro's Body Program costs $99 for the first month, followed by $145 for each month thereafter, not including the cost of medications.
Compounded semaglutide from Sesame, which comes as a monthly package of four doses, is available in premeasured, prefilled syringes to help consumers accurately administer medication dosages, the company said.
As compounded weight loss medications are typically cheaper than branded drugs, Sesame is touting the programs as potentially a more affordable alternative for consumers.
According to the National Center for Health Statistics, nearly three-quarters of American adults over the age of 20 are overweight or obese—a staggering 246 million Americans. At least 25 million Americans are uninsured.
The company said it is working with a 503B compounding pharmacy to obtain the compounded semaglutide for the weight loss program.
Beginning in September, the price of the program will also include access to Sesame’s vast fitness, nutrition and mindfulness content library, provided through its partnership with LifeSpeak, the company said.
“Sesame has proven over five years that Americans do not have to sacrifice quality, convenience or access just to get an affordable price for their care,” said David Goldhill, Sesame's co-founder and CEO, in a statement. “That’s why there’s no retail markup on compounded semaglutide sold through Sesame. Sesame is not a drug company, and we don’t profit from selling one medication over another.”
Sesame already offers branded weight loss and diabetes drugs through its platform. It also teamed up with big-box retailer Costco to launch a new weight loss program for members. That service is available to Costco members in all 50 U.S. states, and the initial three-month subscription is $179.
New York City-based Sesame launched in 2019 to connect patients to in-person and virtual care using a direct-pay model. The company built a two-sided marketplace for patients and healthcare providers. As a cash-pay business, Sesame aims to address the healthcare needs of uninsured consumers and those with high-deductible plans.
The Sesame marketplace is composed of primary care doctors and nurse practitioners, more than 40 health specialties, labs and imaging centers, and is inclusive of both virtual and in-person care.
Sesame will make its compounded semaglutide available according to FDA guidelines and while supply shortages of branded GLP-1s are in place, the company said. As branded GLP-1 supplies become available, and compounded medications may be phased out, Sesame providers will work to transition patients, as needed, to the best medicine for their needs, as well as provide support for insurance prior authorization.
“Cutting edge shouldn’t mean cutting corners,” Goldhill said in a statement. “That’s why Success by Sesame, whether it includes medication or not, is comprehensive clinically and ethical medically. Our exclusive focus is on the safe success of our patients seeking weight loss, whatever therapy or regimen they and their providers together choose.”
The company says its Success by Sesame weight loss program enables patients to choose their own dedicated care provider, who will discuss and prescribe the best treatment options that take into account the patient’s medical history, health goals, insurance status and budget. The program includes face-to-face video visits and unlimited messaging with a provider and lab panels that are professionally reviewed and evaluated, the company said.
Eligible program participants, particularly those with insurance, and with an insurance prior authorization from their Sesame provider, may instead be prescribed name-brand GLP-1 medications depending upon the clinical judgment of their provider. For those patients, and those who do not require or qualify for a prescription, the monthly price of the program is $89, but that does not include the price of any branded medication.
There is a steadily growing demand for weight loss medications. Nearly half of people are interested in taking weight loss drugs, a recent KFF Health poll found. According to the Centers for Disease Control and Prevention, 42% of U.S. adults are obese, comprising 108 million Americans.
Many virtual care companies are adding their names to the growing list of companies providing telehealth weight loss management and access to trendy GLP-1 medications.
Analysts forecast that the obesity drug market may be worth $105 billion in 2030 and could reach as high as $144 billion.