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The Great Ozempic Shortage

Written by Arbitrage2023-02-06 00:00:00

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You've probably been hearing a lot about the shortage of diabetes drug Ozempic in the news and you're probably also wondering what the big deal about Ozempic is. Let's start with what exactly Ozempic is. Ozempic is the name brand of the drug semaglutide (in the same way that Tylenol is acetaminophen). Semaglutide, also sold under the brand names Wegovy and Rybelsus, is an antidiabetic medication that is used for the treatment of type II diabetes.

How does that work? Well, semaglutide is a GLP-1 receptor agonist which means that it mimics the action of glucagon-like peptide 1 (GLP-1) which increases insulin secretion and blood sugar disposal. So, essentially the goal of the drug is to control and improve glycemic control in the body. In December of 2017, Ozempic (injectable version) was approved by the U.S. Food and Drug Administration (FDA). Following that approval, in September of 2019, Rybelsus was approved (oral version) and then in June of 2021, a higher-dose injection by the name of Wegovy was approved for long-term weight management purposes by the FDA. It's also marketed as an anti-obesity medication that is geared toward long-term weight management.

You've probably guessed why it's been in the news so much and why there is a shortage. That's right - it's getting used as a weight loss drug by celebrities, so of course everyone is trying to get their hands on it. Admittedly, the demand is only partially to blame for the shortage of Ozempic. It isn't entirely clear what the source of the shortage is, though it is suspected that part of the issue is misuse. Now, when we say misuse, it is important to note that Ozempic is not an over-the-counter medication and has to be prescribed. So, the patient either has to be diagnosed with type two diabetes or obesity in order to get a prescription for it. That being said, roughly 10% of the American population has diabetes and it is suspected that at least 90% of those cases are type II diabetes according to the Centers for Disease Control and Prevention (CDC). On the flip side, also according to the CDC the prevalence of obesity is estimated to be around 42% with severe obesity being about 9%. With obesity defined as a BMI of greater than 30 and severe obesity defined as a BMI greater than 40.

Regardless of how we personally feel about the accuracy of the BMI calculations in terms of a persons' health, these are the two populations of people who might be prescribed Ozempic, which at most appears to be around 20% of the population if everyone were to be on it (and assuming no overlap between severe obesity and type II diabetes). So, something about these numbers and the shortage of Ozempic aren't adding up, but more to come on that as more information is released.

Something else to think about is that while it's a bit odd that people are after a diabetes drug for weight loss purposes, this is not an uncommon occurrence. For example, have you ever heard of Viagra? Well, Viagra is the brand name for sildenafil which was originally marketed as a drug to help with hypertension. The side effect in men... well, we're sure you're familiar with what it does but truly, that was a side effect and marketing for that side effect is more profitable than marketing for the original intent of the drug. Hence, you don't often hear about people taking Viagra for their hearts; it's usually about something else.

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