Wegovy Funding Under Consideration in new Zealand, Australia Subsidises Weight Loss Drug

New Zealand’s funding agency, Pharmac, is considering applications to fund Wegovy (semaglutide), a weight loss medication, for individuals with a body mass index (BMI) of 30 or higher, and at least one weight-related comorbidity. A separate application for Saxenda (liraglutide) for people with very high BMIs is also under assessment.

Pharmac’s Assessment Process

Pharmac director of advice and assessment David Hughes stated that guidance on funding decisions is expected to be published later this month. The agency will evaluate the drug’s effectiveness compared to existing funded options and its broader impact on individuals, families, caregivers, and the healthcare system. RNZ reported on this process.

Australia’s Decision and Cost Comparison

Australia recently announced it woudl subsidise Wegovy after listing it on the Pharmaceutical Benefits Scheme (PBS). The Australian subsidy will reduce the cost to AU$25 (approximately NZ$29) per script, or AU$7.70 (approximately NZ$9) for concession card holders. ABC News Australia details the Australian decision.

Currently,Wegovy costs $459.99 per month in New Zealand.

Government and Expert Perspectives

Associate Minister of Health David seymour indicated he cannot direct Pharmac’s funding decisions but encouraged the agency to explore how funding new drugs could lead to cost savings elsewhere in the healthcare system. He believes this approach could expedite funding for medications like Wegovy.

Weight loss specialist Dr Gerard McQuinlan argues that funding Wegovy could save taxpayers money in the long run. He highlighted the link between obesity and numerous other diseases, citing Type 2 diabetes as an example. He estimates that Type 2 diabetes costs the New Zealand healthcare system approximately $2.1 billion annually, and reducing its incidence through obesity management could yield meaningful savings. Ministry of Health provides details on diabetes care standards.

Concerns and Considerations

Professor of Paediatric Endocrinology at the University of auckland, Wayne Cutfield, raised concerns about potential weight regain after stopping Wegovy and the high rate of side effects leading patients to discontinue treatment. He emphasized the need for strict criteria for funding, focusing on individuals with obesity and related health conditions, and the importance of considering long-term management strategies.

Dr. McQuinlan addressed concerns about potential drug shortages, suggesting the availability of a pill form of semaglutide in new Zealand could mitigate this issue. He also stressed that obesity is a chronic, relapsing disease requiring ongoing management, as weight often returns after stopping medication, frequently with additional weight gain.

Understanding Obesity as a Hormonal Issue

Dr. McQuinlan explained that obesity is not simply a matter of willpower but is linked to hormonal imbalances affecting hunger, appetite, and satiety. Wegovy works by mimicking a hormone that signals fullness, helping individuals feel satisfied with less food.

Key Takeaways

• Pharmac is evaluating applications to fund Wegovy and Saxenda for eligible New Zealanders.
• Australia has recently subsidised Wegovy, making it more affordable for patients there.
• Experts believe funding Wegovy could lead to long-term cost savings for the healthcare system by reducing obesity-related illnesses.
• Concerns remain regarding potential side effects and the need for long-term treatment.
• Obesity is increasingly understood as a hormonal disease requiring medical intervention.

Publication Date: 2026/01/18 21:05:00