Unlike typical drugs with inelastic demand, the market for GLP-1s is price-elastic. Eli Lilly's CEO confirms that lowering prices directly expands the user base, creating a rare instance where capitalist incentives align with broader consumer access in the pharmaceutical industry.
The long-term nature of GLP-1 treatments means many users may never stop taking them. This transforms a pharmaceutical product into an enduring subscription model, creating a powerful duopoly with a 'physiological lock-in' that rivals the ecosystem control of major tech platforms like Netflix.
The US healthcare system is creating a major bottleneck for GLP-1s. While Medicare is beginning to cover the drugs for seniors, private insurers, who cover two-thirds of Americans, are simultaneously increasing hurdles and dropping coverage, effectively hitting the gas and brakes on a major public health tool.