VIVUS, Inc. (VVUS), Arena Pharmaceuticals, Inc. (ARNA): Will There Ever Be an Obesity Drug Blockbuster?

The key for the obesity drugmakers to hit $1 billion in sales is not only to convince doctors to prescribe their drugs, but for patients to stay on the drug for an extended period of time. I predict that many lazy patients will take the drug, but not change their lifestyles, because they’re looking for an easy fix. After a few months, they won’t see any dramatic results, and they’ll stop taking the medication.

Saving grace
One of the barriers to staying on the obesity drugs is the price. Even if a patient is only seeing modest weight loss, they’ll be more likely to stay on the drug if they’re paying the standard co-pay of $20-$50 per month — that’s the cost of a gym membership with a lot less work — than they would if they’re playing the full price of around $160 .

The companies have made some strides into gaining insurance coverage, but they have a long way to go. Gaining history-setting blockbuster status isn’t going to be easy for any of the three obesity drugs, but insurers are likely the key to get there.

The article Will There Ever Be an Obesity Drug Blockbuster? originally appeared on Fool.com and is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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