In this article, a few years ago, Virta Health founder and CEO Sami Inkinen approached employers about utilizing the company’s nutrition-oriented digital diabetes program for obesity-related weight loss, but most companies were hesitant to commit. Now, more employers are embracing nutritional counseling and coaching due to the increasing costs associated with diabetes and weight loss drugs like Novo Nordisk’s Ozempic and Wegovy, and Eli Lilly’s Mounjaro and Zepbound.
Inkinen stated that their goal is not to maximize GLP-1 prescriptions but to be the preferred telemedicine company for employers to responsibly utilize these drugs, help members discontinue them, and sustain weight loss through nutrition. A peer-reviewed study conducted by the company a year ago revealed that patients on Virta’s nutrition-counseling programs maintained weight loss even a year after discontinuing GLP-1s. Despite this, less than 10% of the company’s weight loss enrollees opt for these drugs, with most choosing nutrition counseling alone and still achieving an average weight loss of 13% over a year.
Virta experienced a record 60% revenue growth in 2024, surpassing $100 million, and is projected to achieve profitability in the latter half of this year. Employers surveyed by the Business Group on Health highlighted GLP-1 drugs as a significant driver of employer plan drug costs, with 96% expressing concerns about long-term cost implications. Consequently, more employers are turning to utilization management strategies such as nutrition counseling and coaching services.
Randa Deaton, vice president of purchaser engagement with Purchaser Business Group on Health, emphasized the importance of ensuring clinical appropriateness and long-term safety and efficacy when providing weight-management medication options like GLP-1s to plan members. However, implementing such programs may lead to pricing challenges for GLP-1s in pharmacy benefits plans due to reduced rebates from PBMs and drug manufacturers.
Virta Health’s competitor, Omada Health, has also witnessed a surge in demand for its GLP-1 weight loss management program, particularly after collaborating with Cigna’s Evernorth pharmacy benefits division on the EncircleRx program. Cigna CEO David Cordani noted the market’s shift towards a more value-based approach in response to the affordability challenges of GLP-1 drugs.
Both Virta and Omada are experiencing growth in their GLP-1 programs, sparking speculation about potential IPOs this year if market conditions are favorable. Omada Health reportedly filed a confidential registration for an IPO with the Securities and Exchange Commission last summer, while Virta Health was valued at $2 billion after its latest funding round in 2021. Inkinen, focusing on the company’s growth, expressed that scaling a successful venture is more straightforward than pursuing an IPO at this time.
