Like millions of Americans, I turned to a GLP-1 drug to lose weight. I’ve tried a number of different providers and switched from semaglutide to tirzepatide, and I’m currently paying $899 for a three-month supply of the highest dose of tirzepatide allowed.
That’s not the cheapest option, but I’m buying through Noom, a company I trust, and that seems valuable when it comes to a medicine I need to inject once a week.
I also trust Costco, but the warehouse club, which has had success with selling GLP-1 drugs, isn’t actually the cheapest, or even one of the cheaper options for people needing these drugs.
Costco’s results, however, suggest that, at least in this one area, the membership club can win based on trust, and perhaps convenience, not just being the cheapest option.
Costco grows its GLP-1 business
Costco CEO Ron Vachris spoke about the company’s growing pharmacy business during its fourth-quarter earnings call.
“In pharmacy, sales grew nearly 20% as we continue expanding our digital capabilities. We increased member value and convenience through our GLP-1 and fertility programs as well as digital options like Rx Mobile Pay Ahead and Pickup Lockers,” he said.
CFO Gary Millerchip noted that while the chain has seen some impact on its food business from GLP-1 use, Costco’s addition of selling the drugs will drive more revenue.
“With the significant value that we offer through the programs that we’ve invested in to date and continue to invest in, we feel like we found ways to both offset those impacts and also drive more value for our members and drive increased script count as well as top line sales,” he said.
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He framed it as being a value and convenience play.
“While I do think there will continue to be those underlying headwinds that we have to manage, we feel good about the way in which we’re delivering more value for members through our health care, creating more convenience for them, and we believe those will allow us to continue to see momentum in that part of our business,” he added.
Costco’s overall business grew as well.
“Net sales for the quarter increased 11.2%, to $93.9 billion, from $84.4 billion last year. Net sales for the fiscal year increased 10.1%, to $297.2 billion, from $269.9 billion last year,” according to the chain’s fourth-quarter earnings release.
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Here is what Costco charges for GLP-1 drugs
- Wegovy injection, 0.25–0.5 mg: $199/month for first 2 fills
- Wegovy injection, 1–2.4 mg: $349/month
- Wegovy tablets, 1.5 mg: $149/month through Dec. 31, 2026
- Wegovy tablets, 4 mg: $199/month
- Wegovy tablets, 9–25 mg: $299/month
- Ozempic injection, 0.25–0.5 mg: $199/month for first 2 fills
- Ozempic injection, 1 mg: $349/month
- Ozempic injection, 2 mg: $499/month
- Source: Costco
Costco’s Member Prescription Program pricing can vary by location and is subject to change.
Wegovy and Ozempic are brand names for semaglutide. Tirzepatide, which is what I take, is marketed under the brand names Mounjaro and Zepbound.
Costco’s prices are in line with buying direct from the manufacturer.
“The pricing structures are designed to build loyalty. Eli Lilly’s LillyDirect charges $299 to $449 a month, with lower prices tied to refilling within 45 days. Novo Nordisk’s NovoCare Pharmacy offers an introductory price of $199 a month before stepping up to $349,” according to Quartz.
You do have to be a Costco member to subscribe to a GLP-1 through the warehouse club.
WebMD shared a list of online sources that sell semaglutide cheaper than Costco without requiring a membership. The same site also has a list of websites offering tirzepatide, which Costco does not sell at all, at prices lower than what I am paying.
Costco sells what its customers want
RTM Nexus CEO Dominick Miserandino thinks selling GLP-1 fits Costco’s business model, even if it creates an odd pairing.
“There’s something a little funny about having milk, a 48-pack of toilet paper and your GLP-1 medication all in the same Costco cart. But these drugs are becoming part of everyday life, so it makes sense that Costco would sell them,” he told The Street.
He doesn’t think price is the only factor in where consumers get these drugs.
“And Costco isn’t always the cheapest. People shop there because they trust they’re getting a fair deal, even if they could find a lower price somewhere else,” he added.
U.S. Bancorp BTIG Managing Director Peter Saleh, in a note shared with TheStreet, talked about the growing market for GLP-1 drugs.
“Our latest survey found adoption of GLP-1 medications continue to broaden, with a greater portion of lower-income and younger (under 35) users compared to a year ago. We found consistent diet implications as previous surveys, with most users cutting about 500 calories from their diet daily, with snacking, alcohol and soda seeing the most significant reductions,” he wrote.
Costco may still have a lot of sales growth in this space ahead of it if Saleh’s predictions are right.
“While we still think that GLP-1 adoption is in the earlier stages and continues to be a headwind for restaurant sales, we will be looking for a change in the mix of duration among GLP-1 users in future surveys to determine when that headwind turns into a tailwind,” he added.
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