The skinny on the what happens to weight-loss drugs now

Summary

Marketplace Morning Report: April 21, 2025

Hosted by David Brancaccio

In this episode of the Marketplace Morning Report, host David Brancaccio delves into pressing topics that affect consumers and the broader economy. The episode covers the recent changes in the availability of weight-loss drugs, a snapshot of the current financial markets, and an in-depth look at the ongoing recovery efforts following the devastating January fires in Los Angeles. Below is a detailed summary of the discussions, insights, and conclusions drawn from each segment.

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1. The Future of Weight-Loss Drugs: Impact of FDA Regulations

Introduction to the Drug Shortage and Its Resolution

The episode kicks off with a segment by Sabri Benishore, who addresses the recent developments concerning weight-loss medications such as Ozempic and Wegovy. Following the FDA's declaration of a shortage of these drugs, compounding pharmacies were authorized to produce them to alleviate the supply constraints. However, with the FDA now declaring the shortage over, these pharmacies face new regulations that will significantly impact consumers.

Insurance Coverage Challenges

Cynthia Cox from the health policy nonprofit KFF sheds light on the insurance landscape surrounding weight-loss drugs. She notes that obtaining insurance coverage for these medications can be challenging, especially when they are prescribed solely for weight loss rather than for diabetes management.

“It can be hard to get these drugs covered by insurance, at least if they're just for weight loss rather than for diabetes.”
— Cynthia Cox [01:08]

Employer and Government Insurance Policies

David Brancaccio interjects to discuss the varying coverage options, pointing out the divergence between different health plans.

“That your health plan is not going...”
— David Brancaccio [01:22]

Cynthia Cox elaborates, indicating that while large employers might offer better coverage, less than one in five do so for weight loss drugs:

“But still, less than one in five large employers covers these drugs for weight loss.”
— Cynthia Cox [01:30]

Furthermore, she highlights the limitations within government programs:

“Medicare doesn't cover them at all, and Medicaid only does in certain states...”
— Cynthia Cox [01:36]

Compounding Pharmacies and Consumer Options

Reena Conti from Boston University's Questrom School of Business provides insights into the operations of compounding pharmacies post-shortage. While these pharmacies are expected to cease producing their versions of weight-loss drugs, a loophole allows them to offer slightly reformulated versions by adding vitamins or varying dosages. This means that while direct access to standard formulations may diminish, consumers will still have alternative options.

“So just because the shortage is over doesn't mean that access to these drugs will be more difficult or more expensive...”
— Reena Conti [01:55]

Conclusion on Consumer Impact

Samantha Fields concludes the segment by summarizing that despite regulatory changes, consumers will continue to have access to weight-loss medications, albeit through different formulations.

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2. Current Financial Markets Update

Market Overview

Sabri Benishore transitions the discussion to the financial markets, presenting a concerning overview of current trends.

“Dow S and P and Nasdaq futures are all down in the 8, 10 to 1 and 3. 10% range with Dow futures down 316 points...”
— Sabri Benishore [02:24]

Bond Market Dynamics

The report highlights unusual market behavior where both stocks and bonds are declining simultaneously, a sign of investor unease.

“Both are down and so is the dollar to a three-year low, meaning investors are afraid of the US right now.”
— Sabri Benishore [02:24]

Implications for Investors

Typically, in times of economic uncertainty, investors flock to bonds as a safe haven, causing bond prices to rise. However, the concurrent decline indicates a lack of confidence in traditional safe assets, suggesting a broader market instability.

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3. Rebuilding After the January Los Angeles Fires

Introduction to the Recovery Efforts

The episode shifts focus to the aftermath of the January fires in Los Angeles, which devastated thousands of homes. David Brancaccio speaks with Waleed Delaware, a contractor and developer in the Altadena neighborhood, who is personally invested in rebuilding efforts after his family lost their home.

Clearing Debris and Emotional Turning Point

Waleed Delaware shares the emotional relief of seeing the debris cleared from his property, marking a significant step toward rebuilding.

“You know, it felt great because it kind of just allowed us to turn the page.”
— Waleed Delaware [03:52]

He recounts the community's support, including providing meals to the cleanup crew, highlighting the collective spirit in the wake of tragedy.

Innovative Construction Techniques

The conversation delves into the innovative construction approaches being employed to rebuild fire-resistant homes. Delaware discusses the use of modular, highly insulated plastic panels combined with concrete and rebar to create walls capable of withstanding fires.

“It's like a big Lego. You drop them, connect them to your foundation and then you add concrete on the outside...”
— David Brancaccio [04:24]

Structural Resilience and Aesthetic Considerations

Delaware emphasizes that these construction methods not only enhance fire resistance but also maintain the aesthetic appeal of traditional wood-frame homes. This balance between functionality and appearance is crucial for community acceptance.

“What really intrigued me with them is that the ability to build the roof and have the high walls and again give the home the same aesthetics as if you were building with a wood frame home.”
— David Brancaccio [05:12]

Navigating Regulatory and Material Challenges

Waleed Delaware addresses the challenges posed by building materials, including potential tariffs and increased demand leading to higher prices. He underscores the importance of strategic planning and early procurement to stay ahead of market fluctuations.

“I think as a builder, the only thing we could do is try to stay ahead of that.”
— David Brancaccio [06:42]

Community and Economic Impact

The segment highlights the broader impact of rebuilding efforts on the community and the local economy. Delaware discusses the need for innovative solutions to meet the high demand for new structures while maintaining affordability and safety standards.

“The sooner you can have a plan, the better it is.”
— Waleed Delaware [06:42]

Conclusion on Recovery Efforts

David Brancaccio wraps up the discussion by acknowledging the resilience of the Altadena community and the importance of adopting new building technologies to prevent future disasters.

“Everyone will make their own decision which direction they're going to go.”
— Reena Conti [05:00]

Further Coverage

For more detailed coverage on the recovery efforts from the January fires, listeners are encouraged to visit marketplace.org.

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Final Notes

The episode concludes with promotional segments for other Marketplace offerings, including the podcast Financially Inclined, which provides trusted advice on personal finance topics such as negotiating job offers, choosing affordable colleges, and discussing money matters with loved ones.

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Key Takeaways:

• Weight-Loss Drugs: The end of the FDA's drug shortage declaration for weight-loss medications will limit compounding pharmacies from producing their versions, potentially affecting consumer access and insurance coverage.

• Financial Markets: Current market trends indicate a rare decline in both stocks and bonds, reflecting investor anxiety about the US economy.

• Rebuilding After Fires: Innovative construction techniques are being employed to rebuild homes destroyed by the January Los Angeles fires, focusing on fire resistance and aesthetic appeal. Strategic planning is essential to navigate material shortages and rising costs.

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This comprehensive summary encapsulates the multifaceted discussions of the Marketplace Morning Report, providing listeners with essential information on health policy changes, economic indicators, and community resilience in the face of natural disasters.

Transcript

[Energy Trust of Oregon Representative]

At Energy Trust of Oregon, we understand that energy isn't just what happens when you flip a switch, it's what happens afterwards. It's a home that can provide both shelter and peace of mind. It's a business that can run more efficiently and keep their dream alive. And it's communities that can thrive today and flourish tomorrow. That's energy. And that's why we partner with local utility companies to help you save energy and lower costs. For cash incentives and resources that can help power your life, visit energytrust.org.

[Sabri Benishore]

Fewer pharmacies will be making weight loss drugs what that means for consumers from marketplace, I'm Sabri Benishore, in for David Brancaccio. When the Food and Drug Administration determined there was a shortage of weight loss drugs like Ozempic and Wegovy, it allowed a special type of pharmacy to step in and make them Compounding pharmacies. They usually make drugs specifically tailored for patients, but they were allowed to step in as kind of a mini manufacturer to help boost supply. But the shortage is officially over, and as a result, under federal law, many of these pharmacies will have to stop selling their own versions of these drugs starting tomorrow. Marketplace's Samantha Fields has more on what this means for consumers.

[Cynthia Cox]

It can be hard to get these drugs covered by insurance, at least if they're just for weight loss rather than for diabetes. Cynthia Cox at the health policy nonprofit KFF says if you buy coverage through the marketplace, then it's probably the case.

[David Brancaccio]

That your health plan is not going.

[Cynthia Cox]

To cover these drugs. You might have better luck if you work for a big company.

[David Brancaccio]

But still, less than one in five large employers covers these drugs for weight loss.

[Cynthia Cox]

Medicare doesn't cover them at all, and Medicaid only does in certain states, which means lots of people are paying out of pocket and the compounded drugs tend to be much cheaper. Reena Conti at Boston University's Questrom School of Business says with the shortage over, compounding pharmacies are supposed to stop making their own versions.

[David Brancaccio]

But there's a loophole compound pharmacies can.

[Cynthia Cox]

Sell drugs that have a slight reformulation. They might start adding in vitamins or making different doses. So just because the shortage is over doesn't mean that access to these drugs will be more difficult or more expensive, conti says. People will still have options. They might just be different. I'm Samantha Fields for Marketplace.

[Sabri Benishore]

All right, let's do the numbers. Dow S and P and Nasdaq futures are all down in the 8, 10 to 1 and 3. 10% range with Dow futures down 316 points, the yield on the 10 year treasury is at 4.4%. That means bond prices are down. And normally in times of strife, when you see stocks go down like this, bond prices go up, people are not, are taking their money out of stocks, putting it into bonds which are considered safe. Not this morning. Both are down and so is the dollar to a three year low, meaning investors are afraid of the US right now. We're going to check in now on how people are recovering from the January fires in Los Angeles that destroyed thousands of homes. Waleed Delaware is a contractor and developer in the Altadena neighborhood. So he builds homes, but he and his family also lost theirs. They're now in the process of rebuilding. My colleague David Brancaccio spoke with Delaware recently, about three months after the fire, just as the Army Corps of Engineers finished clearing the debris from his property. David started by asking Delaware how it felt to see everything finally cleared from the lot.

[David Brancaccio]

You know, it felt great because it kind of just allowed us to turn the page. And as a family we went up there, the kids went out of school, the crew was excellent. We brought them lunch one day. As a family, we just let them know how thankful we are for what they're doing. So it was a big moment for us again to take that next step.

[Waleed Delaware]

But you're running the numbers, for instance, on a somewhat innovative construction approach. It involves plastic that's very insulated, but it's modular.

[David Brancaccio]

So it's a panel system that, it's 3D paneling and they come in just large sheets and it's like a big Lego. You drop them, connect them to your foundation and then you add concrete on the outside, on both the inside and the outside of the home. So you in a sense have 4 or 5 inch structure in the middle that is fire resistant insulation. And then you have rebar and then you have about an inch and a half of concrete that's on both sides. So you're, you, you have a fairly large thick wall that is fully fire, I hate to say fireproof, but you know, can withstand a fire.

[Waleed Delaware]

What about the roof?

[David Brancaccio]

The roof is the same material. So the, the company that we're using or looking at, what really intrigued me with them is that the ability to build the roof and have the high walls and again give the home the same aesthetics as if you were building with a wood frame home. We're really just flushing out the different ideas because then I could just make a modification to the plans and the structural plans. But, but you don't think you're going.

[Waleed Delaware]

To freak them out with this new construction technique?

[David Brancaccio]

You know, it's not. It's not so much new on our end. It's been around. The big question is, is how experienced these guys are in reviewing things like this. And so this is the one opportunity we all have to take a step back and see is there a better way to build that home? And if it is, what does that mean from a dollar's perspective? What does it mean from a value real estate perspective? And what does it mean, you know, from an investment standpoint? You know, and so if we can just have those questions or if you can be able to communicate with people that have some of those answers, you know, everyone will make their own decision which direction they're going to go.

[Waleed Delaware]

What are you hearing about building materials? There's more than 6,000 structures just in this fire that have to be built. It's a time when we may or may not have tariffs. Depending on which day we're at, there must be a lot of demand, and with demand is higher prices.

[David Brancaccio]

I think as a builder, the only thing we could do is try to stay ahead of that. Try to figure out as early as possible the direction you're going to build. You know, all our lots are dead open dirt. And so getting containers, buying material in advance, storing it, you know, being strategic with what you can do. The sooner you can have a plan, the better it is.

[Waleed Delaware]

Well, Lee Delaware, thank you very much.

[David Brancaccio]

Thank you, David.

[Sabri Benishore]

That was Marketplace's David Brancaccio speaking with Waleed, Delaware. For more of our fire coverage, you can head over to marketplace.org in New York. I'm Sabri Benishore with the Marketplace Morning.

[David Brancaccio]

Report.

[Sabri Benishore]

From apm, American Public Media.

[Jannelli Espinal]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Jannelli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined wherever you get your podcasts.