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The rising popularity of weight-loss medications like Ozempic and Wegovy has prompted increased scrutiny of their key ingredient, semaglutide, and its broader impact on healthcare systems. Prescriptions for these drugs have seen a significant increase in recent years, fueled by both legitimate medical use and off-label demand, raising questions about accessibility, affordability, and potential long-term effects.
These medications, belonging to a class of drugs known as GLP-1 receptor agonists, were initially developed to treat type 2 diabetes. They work by mimicking a natural hormone that regulates appetite and blood sugar levels, leading to weight loss as a secondary effect. While Ozempic is currently only approved for diabetes treatment in Australia, it is marketed under the brand name Wegovy overseas specifically for weight management, leading some Australians to seek prescriptions “off label” or source the medication from compounding pharmacies.
The increasing demand has created shortages, impacting patients who rely on these medications for diabetes management. The Therapeutic Goods Administration (TGA) has acknowledged these shortages and is attempting to manage the situation by asking doctors and pharmacies to prioritize prescriptions for those with type 2 diabetes, but it lacks the authority to prevent doctors from prescribing Ozempic for weight loss based on their clinical judgment. These shortages are expected to last until 2025, according to the TGA.
Wegovy Access Expanding in Australia
Australia is taking steps to improve access to Wegovy, specifically for individuals with severe obesity and established cardiovascular disease. As of January 12, 2026, the government announced plans to subsidize Wegovy through the Pharmaceutical Benefits Scheme (PBS) for patients with a Body Mass Index (BMI) of 35 or higher who have experienced a cardiovascular event, such as a heart attack or stroke. This move aims to address health inequities, as currently over 400,000 Australians are paying between $4,000 and $5,000 annually for GLP-1 medications. The change is expected to result in a “very substantial bill for taxpayers,” according to Health Minister Mark Butler, though the exact cost remains unclear.
The PBS listing will too introduce a maximum price cap for all drugs on the subsidy scheme, with prescriptions costing a maximum of $25, and $7.70 for pensioners and concession card holders. This represents a significant reduction in cost for eligible patients.
Semaglutide: How it Works and Potential Risks
Semaglutide, the active ingredient in both Ozempic and Wegovy, is a glucagon-like peptide-1 (GLP-1) medication. It functions by suppressing appetite, leading to reduced food intake and subsequent weight loss. Both drugs are manufactured by Novo Nordisk. While effective, these medications are not without potential side effects. On December 1, 2025, Australia’s medicine regulator issued a warning about a potential link between Ozempic and Wegovy and suicidal ideation.
The potential benefits extend beyond weight loss, with some research suggesting GLP-1 medications may offer additional health advantages. Yet, Health Minister Butler emphasized that these drugs are “extraordinary” and require careful consideration.
The Broader Implications
The increased use of these medications raises broader questions about the societal approach to obesity and weight management. The Pharmaceutical Benefits Advisory Committee (PBAC) recommended Wegovy’s addition to the PBS in late 2025, recognizing the potential benefits for a specific population. However, the long-term effects of widespread GLP-1 agonist use remain to be fully understood.
As the PBS listing of Wegovy moves forward, negotiations between the government and Novo Nordisk will be crucial in determining the final cost and accessibility of the medication. The situation highlights the complex interplay between pharmaceutical innovation, public health policy, and the economic realities of healthcare.
Disclaimer: This article provides informational content and should not be considered medical advice. Consult with a qualified healthcare professional for personalized guidance on weight management and medication options.
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