Drugs, Health Technologies, Health Systems

Reimbursement Recommendation

Tirzepatide (Zepbound)

Indication: For once-weekly administration for chronic weight management, including weight loss and weight maintenance, as an adjunct to a reduced-calorie diet and increased physical activity, in adults with an initial body mass index of: 30 kg/m2 or greater (obesity), or 27 kg/m2 to less than 30 kg/m2 (overweight) in the presence of at least one weight-related comorbid condition (e.g., hypertension, dyslipidemia, prediabetes, type 2 diabetes mellitus, obstructive sleep apnea, or cardiovascular disease).

Sponsor: Eli Lilly Canada Inc.

Recommendation: Reimburse with conditions

Summary

What Is the Reimbursement Recommendation for Zepbound?

Canada’s Drug Agency (CDA-AMC) recommends that Zepbound be reimbursed by public drug plans for once-weekly administration for chronic weight management, including weight loss and weight maintenance, as an adjunct to a reduced-calorie diet and increased physical activity, in adults with a body mass index (BMI) of greater than or equal to 27 kg/m2 and prediabetes, if certain conditions are met.

Why Did CDA-AMC Recommend Reimbursement?

The Canadian Drug Expert Committee (CDEC) concluded that Zepbound does not demonstrate acceptable clinical value compared with appropriate comparators (reduced-calorie diet and increased physical activity; semaglutide) for the full Health Canada indicated population (adults with a BMI of greater than or equal to 30 kg/m2 [obesity], or BMI of 27 kg/m2 to less than 30 kg/m2 [overweight] in the presence of at least 1 weight-related comorbid condition). However, CDEC concluded that Zepbound demonstrates acceptable clinical value compared with appropriate comparators (reduced-calorie diet and increased physical activity) in the subpopulation of adults with a BMI of greater than or equal to 27 kg/m2 and prediabetes. This determination was enough for CDEC to recommend that Zepbound be reimbursed. Given that Zepbound is expected to be an additive treatment to reduced-calorie diet and increased physical activity in this subpopulation, acceptable clinical value refers to added value versus reduced-calorie diet and increased physical activity alone.

Three phase III randomized controlled trials (SURMOUNT-1, SURMOUNT-2, and SURMOUNT-4) showed that Zepbound, when combined with diet and physical activity, resulted in clinically meaningful reductions in body weight and increased the likelihood of achieving 5% or greater weight loss compared with placebo over 52 to 72 weeks in adults with overweight or obesity. In the prediabetes subgroup of the SURMOUNT-1 trial, Zepbound also reduced progression to type 2 diabetes mellitus (T2DM) through 176 weeks. While improvements in quality of life and functioning were observed, their clinical importance remains uncertain. No major safety concerns were identified, although long-term harms are unknown. Evidence on the impact of Zepbound on long-term clinical outcomes (e.g., cardiovascular events, mortality) and its comparative efficacy versus relevant comparators is lacking. Overall, the evidence is most supportive of a clinically meaningful benefit in patients with overweight or obesity and prediabetes since this subpopulation demonstrated sustained weight loss over the longest period of follow-up and a reduced risk of developing T2DM.

Which Patients Are Eligible for Coverage?

Zepbound should only be covered for adults who have a BMI of 27 kg/m2 or greater and prediabetes, and at least 1 self-reported unsuccessful dietary attempt at weight loss.

What Are the Conditions for Reimbursement?

Zepbound should only be reimbursed for chronic weight management if the patient is following a reduced-calorie diet and engaging in increased physical activity and if the cost of Zepbound is reduced. For continuation of reimbursement after the first year of treatment, at least a 5% reduction in total body weight from baseline must be documented. Thereafter, patients should be reassessed each year. Zepbound should not be reimbursed for use in combination with other glucagon-like peptide-1 (GLP-1) receptor agonists (RAs).

Important budget impact considerations must be addressed for health systems to be able to adopt Zepbound.

Review Background

Highlights of Input From Interested Parties

The patient groups (Diabetes Canada, Gastrointestinal Society, Obesity Matters, and Obesity Canada) noted the following regarding impacts of the disease, unmet needs, and important outcomes:

The clinician groups (LMC Diabetes and Endocrinology; joint submission from Obesity Canada, Diabetes Canada, Canadian Society of Endocrinology and Metabolism, Canadian Association of Bariatric Physicians and Surgeons, and Canadian Cardiovascular Society; and York Weight Loss Clinical and Internal Medicine Clinic) and the clinical experts consulted by CDA-AMC for this review noted the following regarding unmet needs arising from the disease and place in therapy for the drug under review:

The participating public drug programs raised potential implementation issues related to considerations for initiation, discontinuation of therapy, and generalizability of trial populations to broader populations.

Recommendation

With a vote of 12 in favour to 3 against, CDEC recommends that tirzepatide be reimbursed for once-weekly administration for chronic weight management, including weight loss and weight maintenance, as an adjunct to a reduced-calorie diet and increased physical activity, in adults with a BMI of greater than or equal to 27 kg/m2 and prediabetes, only if the conditions listed in Table 1 are met.

Table 1: Reimbursement Conditions and Reasons

Reimbursement condition

Reason

Implementation guidance

Initiation, renewal, and prescribing

1. Treatment with tirzepatide should be reimbursed as an adjunct to a reduced-calorie diet and increased physical activity, for chronic weight management in adults who have all the following:

1.1. a BMI ≥ 27 kg/m2 and prediabetes

1.2. at least 1 self-reported unsuccessful dietary attempt at weight loss.

Evidence from the SURMOUNT-1 trial demonstrated that treatment with tirzepatide resulted in a clinical benefit in weight loss and delaying progression to T2DM in patients with these characteristics.

Patient should maintain a 500 kcal/day energy deficit through dietary caloric restriction and engage in at least 150 minutes of physical activity per week while receiving tirzepatide treatment.

The clinical experts noted that it would be reasonable to reimburse tirzepatide per definition of prediabetes used in the SURMOUNT-1 trial. For defining eligibility in patients with prediabetes, at least 1 of the following is required:

  • 1 hemoglobin A1C level between 5.7% and 6.4%

  • 2 fasting plasma glucose levels between 5.6 and 6.9 mmol/L measured independently on different dates

  • 1 two-hour blood glucose level between 7.8 and 11.0 mmol/L on the oral glucose tolerance test.

The clinical experts noted that, although these criteria differ slightly from those used in the trial (where at least 2 abnormal values of A1C, fasting plasma glucose, or oral glucose tolerance test were required), they are considered more pragmatic for implementation in clinical practice.

2. The maximum duration of initial authorization is 1 year.

An initial authorization of 1 year was recommended to allow the patient time to reach a therapeutic dose of tirzepatide (2.5 mg or maximum tolerated dose up to 15 mg) and then evaluate the benefit of continued treatment at that dose, while also providing flexibility based on patient and clinician availability.

The clinical experts indicated that tirzepatide treatment should not be discontinued in patients who progress to T2DM.

Renewal

3. For renewal after initial authorization, the physician must document a beneficial clinical effect when requesting continuation of reimbursement, defined as at least a 5% reduction in total body weight from baseline.

A 5% reduction in total body weight was identified as a clinically meaningful improvement in weight for the management of overweight and obesity based on input from clinical experts. In the prediabetes subgroup of the SURMOUNT-1 trial, in which a delay in progression to T2DM with tirzepatide treatment was observed, most patients had ≥ 5% weight reduction from baseline at week 176.

Patient should maintain a reduced-calorie diet and increased physical activity while receiving tirzepatide treatment.

4. For subsequent renewal, the physician must provide proof that the initial response achieved after the first year of treatment with tirzepatide has been maintained. Subsequent renewals should be assessed annually.

Annual assessments will help ensure the treatment is used for those benefiting from the therapy and would reduce the risk of unnecessary treatment. The clinical experts indicated to CDEC that weight loss is expected to plateau even with effective treatments, and maintenance of reduced weight is sufficient for subsequent renewals.

Prescribing

5. Tirzepatide should not be reimbursed for use in combination with other GLP-1 RAs.

Tirzepatide has a shared mechanism of action with GLP-1 RAs. There is no evidence to support whether tirzepatide offers additional benefit when used in combination with other GLP-1 RAs.

Pricing

6. A reduction in price.

Using the CDA-AMC scenario analysis reflecting the requested reimbursement population, the ICER for tirzepatide 5 mg was $77,871, 10 mg was $97,940, and 15 mg was $123,265 per QALY gained, respectively, compared to diet and exercise.

For tirzepatide 5 mg, a band 2a price reduction would be required to achieve cost-effectiveness at a $50,000 per QALY threshold in this population. No price reduction would be required to achieve cost-effectiveness at a $100,000 per QALY threshold.

For tirzepatide 10 mg, a band 2a price reduction would be required to achieve cost-effectiveness at a $50,000 per QALY threshold in this population. No price reduction would be required to achieve cost-effectiveness at a $100,000 per QALY threshold.

For tirzepatide 15 mg, a band 2a price reduction would be required to achieve cost-effectiveness at a $50,000 per QALY threshold in this population. A band 1a price reduction would be required to achieve cost-effectiveness at a $100,000 per QALY threshold.

Price reductions for tirzepatide for any given willingness-to-pay threshold are available in the CDA-AMC Main Report and Supplemental Material document. Due to uncertainty in the economic analysis further price reductions might be required.

The CDA-AMC analysis is based on public list prices for all treatments. Further price reductions may be required if there are price arrangements (discounts) currently in place for any treatment included in the economic analysis.

Feasibility of adoption

7. The economic feasibility of adoption of tirzepatide must be addressed.

At the submitted price, the incremental budget impact of tirzepatide is expected to be greater than $40 million in years 1, 2, and 3.

At the submitted price, the magnitude of uncertainty in the budget impact must be addressed to ensure the feasibility of adoption, given the difference between the sponsor’s estimate and the CDA-AMC estimate(s).

BMI = body mass index; CDA-AMC = Canada’s Drug Agency; CDEC = Canadian Drug Expert Committee; GLP-1 RA = glucagon-like peptide-1 receptor agonist; ICER = incremental cost-effectiveness ratio; T2DM = type 2 diabetes mellitus; QALY = quality-adjusted life-year.

aFor the statement regarding the size of the price reduction required, band 1 = 1% to 24%; band 2 = 25% to 49%; band 3 = 50% to 74%; and band 4 = 75% or greater.

Rationale for the Recommendation

Clinical Value

Based on the totality of the submitted clinical evidence, CDEC concluded that tirzepatide does not demonstrate acceptable clinical value compared with appropriate comparators for the full Health Canada indicated population (adults with a BMI of greater than or equal to 30 kg/m2, or BMI of 27 kg/m2 to less than 30 kg/m2 in the presence of at least 1 weight-related comorbid condition). Appropriate comparators for the full Health Canada indicated population refer to reduced-calorie diet and increased physical activity; additionally, semaglutide (Ozempic) is an appropriate comparator in the subpopulation with overweight or obesity and T2DM, and semaglutide (Wegovy) is an appropriate comparator in the subpopulation with overweight or obesity and established CVD. However, CDEC concluded that tirzepatide demonstrates acceptable clinical value compared with appropriate comparators (reduced-calorie diet and increased physical activity) in the subpopulation of adults with a BMI of greater than or equal to 27 kg/m2 and prediabetes. Given that tirzepatide is expected to be an additive treatment to reduced-calorie diet and increased physical activity in this subpopulation, acceptable clinical value refers to added value versus reduced-calorie diet and increased physical activity alone.

Three phase III, randomized, double-blind, placebo-controlled trials (SURMOUNT-1 [N = 2,539], SURMOUNT-2 [N = 938], SURMOUNT-4 [N = 640]) evaluating the efficacy and safety of tirzepatide versus placebo as an adjunct to reduced-calorie diet and increased physical activity demonstrated that treatment with tirzepatide 5 mg, 10 mg, and 15 mg in adults with obesity or overweight and at least 1 weight-related comorbidity resulted in added benefit in reduction of body weight and in achieving 5% or greater weight loss at 52 to 72 weeks. However, it is unknown whether this translates into a reduction in important long-term clinical outcomes such as major adverse cardiovascular events, osteoarthritis, obstructive sleep apnea, or premature mortality since they were not evaluated in the trials. Additionally, there was no evidence to inform how tirzepatide compares with relevant comparators in subpopulations, including semaglutide (Ozempic) in adults with obesity or overweight and T2DM, or with semaglutide (Wegovy) in adults with obesity or overweight and established CVD. The committee further considered results in the prediabetes subgroup from the SURMOUNT-1 trial, which demonstrated that compared with placebo, tirzepatide likely leads to a clinically important reduction in the proportion of those who progressed to T2DM, in addition to benefits in reduction of weight, through week 176 when added to a reduced-calorie diet and increased physical activity. Improvements in quality of life and functioning were observed at 52 to 72 weeks and were maintained in the prediabetes subgroup of the SURMOUNT-1 trial at 176 weeks; however, CDEC noted that the clinical meaningfulness of this improvement in quality of life and functioning is uncertain in all trials. Across trials, there were no notable safety signals identified, and CDEC considered the safety profile of tirzepatide to be manageable, although harms occurring with longer duration of treatment are not known. Taken together, the committee concluded that the evidence is most supportive of a clinically meaningful benefit in patients with overweight or obesity and prediabetes, in whom sustained effects on weight over the longest follow-up and a reduction in progression to T2DM were demonstrated.

Further information on the committee’s discussion around clinical value is provided in the Summary of Deliberation section.

Developing the Recommendation

The determination of acceptable clinical value was sufficient for CDEC to recommend reimbursement of tirzepatide. As part of the deliberation on whether to recommend reimbursement, the committee also considered unmet clinical need, unmet nonclinical need, and health inequity. Information on this discussion is provided in the Unmet Clinical Need and Distinct Social and Ethical Considerations domains in the Summary of Deliberation section.

Because CDEC recommended that tirzepatide be reimbursed, the committee also deliberated on whether reimbursement conditions should be added to address important economic considerations, health system impacts, or social and ethical considerations, or to ensure clinical value is realized. The resulting reimbursement conditions, with accompanying reasons and implementation guidance, are stated in Table 1.

Summary of Deliberation

CDEC considered all domains of value of the deliberative framework before developing its recommendation: clinical value, unmet clinical need, distinct social and ethical considerations, economic considerations, and impacts on health systems. For further information on the domains of value, refer to Expert Committee Deliberation at Canada’s Drug Agency.

The committee considered the following key discussion points, organized by the 5 domains of value.

Clinical Value

Unmet Clinical Need

Distinct Social and Ethical Considerations

Economic Considerations

Impacts on Health Systems

Sources of Information Used by the Committee

To make its recommendation, the committee considered the following information (links to the full documents for the review can be found on the project webpage):

CDEC Information

Members of the Committee

Dr. Peter Jamieson (Chair), Dr. Kerry Mansell (Vice-Chair), Sally Bean, Daryl Bell, Dan Dunsky, Dr. Ran Goldman, Dr. Trudy Huyghebaert, Dr. Dennis Ko, Dr. Christine Leong, Alicia McCallum, Dr. Srinivas Murthy, Dr. Nicholas Myers, Dr. Krishnan Ramanathan, Dr. Marco Solmi, Carla Velastegui, Dr. Edward Xie, and Dr. Peter Zed.

Meeting date: June 24, 2026

Regrets: One expert committee member did not attend.

Conflicts of interest: None