GLP-1s Will Continue to Drive 2025 Pharmacy Expenditures, Expert Says

Prescription drug spending this year is predicted to rise 9% to 11% from the 2024 total of $806 billion, according to a recent study published in the American Journal of Health-System Pharmacy. At the same time, spending overall will likely be higher in clinics when compared with spending in a hospital setting.

Glucagon-like peptide 1 (GLP-1) drug Semaglutide accounted for $54 billion in drug expenditures in 2024. This is followed by tirzepatide, another GLP-1, which accounted for $32 billion spent, according to the study.

Eric Tichy, Pharm.D., M.B.A.

“In 2025 we’ve observed a continued trend from 2024 where the GLP-1 products are driving expenditures in all categories, especially the overall spend,” Eric Tichy, Pharm.D., M.B.A., vice chair of pharmacy formulary at the Mayo Clinic Health System and lead author, said in an interview with Managed Healthcare Executive.

The paper also predicts spending will be higher at clinics (11% to 13%) than at hospitals (2% to 4%) in 2025, compared with 2024.

“The main reason for that is most of the drug innovation is occurring in the outpatient arenas,” Tichy said. “There's been a big multi-decade push to move more care into the outpatient setting and even, ultimately, potentially, into the home, where you have less overhead and less cost for the healthcare system.”