Eli Lilly, the American pharmaceutical giant, has proposed that Mounjaro, a popular weight-loss drug, be added to Australia’s Pharmaceutical Benefits Scheme (PBS), which would make it available to patients with severe obesity at a reduced cost. This proposal, seen as a test for the government’s willingness to subsidize weight-loss medications, follows a similar decision in Britain to make Mounjaro available on its National Health Service (NHS) for eligible patients.
Eli Lilly plans to submit its request for Mounjaro’s inclusion on the PBS by mid-2025. However, the subsidy would only apply to individuals with severe obesity and related health conditions, such as heart disease or diabetes, rather than for general weight loss, which is the broader use of these drugs today. The cost of Mounjaro ranges from $345 to $645 per month, and pharmaceutical companies argue that increasing access to these drugs could help reduce long-term healthcare costs by improving obesity-related health outcomes.
A PBS listing means the government would cover most of the drug’s cost. Currently, only Ozempic, another weight-loss drug by Novo Nordisk, is listed on the PBS, but only for diabetes management, not obesity. If successful, Eli Lilly’s proposal would mark a significant milestone for the growing weight-loss drug industry, which sells GLP-1 medications at full price to millions globally. The Biden administration in the U.S. is also considering subsidies for obesity treatments.
Eli Lilly’s move will test the Australian government’s stance on subsidizing drugs that have gained significant popularity but come with high costs. One option under consideration is to limit the number of prescriptions the government would subsidize, with the pharmaceutical companies covering any shortfall.
The government has been hesitant to fund GLP-1s beyond diabetes treatment. In late 2023, the Pharmaceutical Benefits Advisory Committee (PBAC) rejected an application for Wegovy, another Novo Nordisk weight-loss drug. However, Eli Lilly is optimistic, citing growing recognition among politicians and healthcare professionals of the benefits these drugs offer in managing obesity-related conditions.
Tori Brown, Eli Lilly’s General Manager for Australia and New Zealand, confirmed that the company would submit a funding proposal next year. The submission will focus on individuals with obesity and related health risks, such as stroke, heart attack, kidney failure, and diabetes.
“We acknowledge the challenge ahead in Australia, as there are currently no anti-obesity medications funded by the government,” Brown said. “However, there is increasing understanding within the federal government of the benefits that drugs like Mounjaro can provide. We are committed to working with all stakeholders to improve access to anti-obesity treatments.”
The PBAC is expected to consider Eli Lilly’s submission at its meeting in July 2025. The committee usually meets three times a year—in March, July, and November. In December 2023, Novo Nordisk’s second attempt to get Wegovy listed for severe obesity was also rejected.
Meanwhile, the UK’s National Institute for Health and Care Excellence (NICE) approved Mounjaro for use in approximately 3.4 million people starting in March 2025, but only for those with a BMI of over 35 and at least one weight-related condition, such as diabetes or hypertension. The drug will be available alongside diet and exercise advice and phased in over 12 years. In Australia, a BMI between 18.5 and 24.9 is considered healthy.
Matt Vickers, Clinical Director of Eucalyptus, a telehealth company that provides weight-loss services in Australia and other countries, criticized the Australian government’s stance. He argued that the country is falling behind the UK in adopting more progressive approaches to weight-loss treatments.
“The Australian health authorities seem content with the current system, where patients pay out of pocket for these medications, which is unfair to those who can’t afford them,” Vickers said. “The UK is taking a more forward-thinking approach with advanced solutions.”
The challenge for pharmaceutical companies, according to Vickers, is convincing regulators of the long-term economic benefits of wider access to these medications. While the drugs are widely popular on social media and endorsed by celebrities, regulators have asked for more real-world evidence of their effectiveness beyond clinical trials.
Eli Lilly’s clinical trials show that Mounjaro leads to an average weight loss of 20.2%, compared to 13.7% with Wegovy. However, doctors have cautioned that trials funded by pharmaceutical companies may be biased. According to Eucalyptus, 11.8% of men and 13.4% of women in Australia have a BMI over 35, and 64% of the population is overweight, similar to the UK’s 64.2%.
