Omada Health begins prescribing GLP-1s and other obesity drugs

Virtual Care Company Umada health On Thursday, it said it would begin prescribing GLP-1s and other obesity medications and help patients manage those medications.

Omada plans to expand the offerings under its weight management program as its membership grows to more than 800,000.

The announcement comes as digital health companies increase their presence in the hot market for GLP-1s to treat obesity, diabetes and other chronic conditions — a space that could be worth nearly $100 billion by the end of the decade, according to some analysts. Many digital health companies are similarly offering prescriptions for GLP-1s, and the manufacturers of these drugs, Eli Lilly and Novo Nordisk, are taking steps to make their treatments more accessible while also developing new treatments for patients.

“This announcement is in response to our belief that access to GLP-1 will grow significantly over time,” Sean Duffy, co-founder and CEO of Omada, said in an interview. Omada realizes that the market will expand beyond GLP-1 injections to pills and other “next generation” treatments that work in different ways, underscoring the need to help patients manage their medications, he said.

Programs from companies like Omada aim to support lifestyle and behavioral changes for patients taking these medications, offering nutritional guidance, education, and a team of health coaches and exercise specialists, among other resources, that can help people stay on the medications longer. But Omada is now using licensed providers trained in obesity care to prescribe medications and help patients manage medications.

The new offering will allow the company to support patients while they receive a prescription and during their time on GLP-1. This type of support is crucial, because GLP-1 injections can be complicated for patients to use correctly and often come with gastrointestinal side effects that force some people to stop treatment.

“If you need to increase or decrease the dose, switch medications — you name it. We will be able to support you through this experience,” Duffy said.

Omada, which partners with national and regional health plans and employers, said the new offering is an addition for customers to better support the health needs of their workers while controlling costs and improving outcomes of obesity treatments.

Also on Thursday, Omada Health reported quarterly earnings for the second time since its initial public offering in June.

The company, founded in 2011, offers virtual care programs to support patients with chronic conditions such as prediabetes, diabetes and high blood pressure. Omada describes his approach as a “between-visit care model” that is complementary to the broader healthcare ecosystem.