The news: Novo Nordisk is partnering with Costco to offer Costco members Ozempic and Wegovy for $499 per month—about half off what the medications cost patients without insurance. Executive members and people with Costco Citibank credit cards will also get a cash back reward. Members with a prescription are eligible for the discounted price at over 500 Costco pharmacies across the US.

Why it matters: The market for popular GLP-1 medications is becoming a price war. On one side, companies are selling cheaper, compounded versions directly to customers (D2C). On the other side, the main GLP-1 drugmakers, Novo and Eli Lilly, are competing by lowering the prices of their brand-name medications Ozempic and Wegovy.

Novo is fighting for customers who pay for the drugs themselves by offering discounts through its own pharmacy and by partnering with online doctors and major grocery and drugstore chains.

• Novo recently made the $499 cash-pay price for Ozempic and Wegovy available at more than 70,000 pharmacy counters via a partnership with GoodRx.
• Novo has also made its discounted GLP-1s available through some telehealth companies, including LifeMD and Ro.

Our take: GLP-1 drugmakers are targeting consumers whose health plans have dropped coverage or added new coverage restrictions. Many of these consumers will still ante up for their prescription cost out-of-pocket, perhaps likening it to an expensive gym membership, weight loss program, or other expensive, discretionary lifestyle purchases.

• Nearly one-quarter (23%) of GLP-1 users said they covered the entire cost of the medication, per our December 2024 Digital Health survey—and that’s before Novo and Lilly started dropping their D2C prices.

Tapping into Costco’s customer base of over 100 million US cardholders is a savvy play, especially considering that Costco members skew toward higher-income compared with shoppers generally. Novo and Costco can specifically market to new mothers and families who may be struggling with weight gain due to their busy lives.

The companies will also want to raise awareness of their offering to weight loss clinics and other healthcare providers in areas surrounding Costco pharmacies, since patients will need a prescription to access the discounted price. Messaging should emphasize that the offer features FDA-approved GLP-1s, not unapproved compounded forms, to resonate with clinicians.