Now That Obesity Is Classified as a ‘Disease’ …

by Christopher Freeburn | June 19, 2013 10:37 am

Now That Obesity Is Classified as a ‘Disease’ …

obesity evolution 630 300x193 Now That Obesity Is Classified as a Disease ...[1]Despite a recommendation against declaring obesity a disease by its own Council on Science and Public Health, the American Medical Association did exactly that at its annual convention in Chicago[2].

In classifying obesity as a disease, the AMA is following a 2008 recommendation from the Obesity Society. Medicare dropped language denying that obesity is a disease from its coverage guidelines almost a decade ago, but still doesn’t pay for anti-obesity drugs, the New York Times notes.

The decision is expected to affect the way physicians and insurers deal with obesity and related conditions going forward.

Implications of the AMA’s decision include:

In recent months, two new obesity drugs have hit the market: Vivus‘ (VVUS[3]) Osymia and Arena Pharmaceutical’s (ARNA[4]) Belviq. However, Osymia sales have so far proven disappointing, while Belviq only just received clearance for sale in the U.S. after overcoming regulatory hurdles[5].

More drugs are likely to follow. Denmark-basedĀ Novo Nordisk(NVO[6]) is conducting trials onĀ liraglutide, which could hit the market by 2015[7].

Shares of Vivus and Arena climbed more than 1% in Wednesday morning trading, while Novo Nordisk shares fell about 1%.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/05/obesity-evolution-630.jpg
  2. did exactly that at its annual convention in Chicago: http://www.nytimes.com/2013/06/19/business/ama-recognizes-obesity-as-a-disease.html?_r=0
  3. VVUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=VVUS
  4. ARNA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ARNA
  5. after overcoming regulatory hurdles: http://investorplace.com/2013/06/new-weight-loss-drug-belviq-finally-available-in-u-s/
  6. NVO: http://studio-5.financialcontent.com/investplace/quote?Symbol=NVO
  7. which could hit the market by 2015: http://investorplace.com/2013/05/new-obesity-drug-could-launch-in-u-s-before-2015/

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