The world of medicine is seeing its drug pipeline moving faster than ever, with over 12,000 new drugs in development in 2024—a remarkable 19% annual growth since 2019. This surge brings exciting opportunities for improved health outcomes but also presents challenges in managing private drug plan costs and access.
In our 2025 drug pipeline report, we explore the latest drug innovations and their impact on private employer plan health benefits including breakthroughs in women’s health, diabetes, Attention-Deficit/Hyperactivity Disorder (ADHD), Alzheimer’s and rare diseases.
Here are a few of this year’s highlights.
Women’s health breakthrough
A new class of non-hormonal medications called NK3 receptor agonists are being developed to treat menopause symptoms. Fezolinetant (Veozah®) received approval in Canada in December 2024, while elinzanetant was under review.
These new menopause treatments give women who can’t or don’t want to use hormone therapy an alternative choice. There is, however, a risk of rare but serious liver injury, so regular blood tests would be needed to monitor for this condition.
Diabetes and weight loss innovations
We’re also seeing advancements in diabetes treatments and weight loss medications. Two medications on our radar are:
* Semaglutide (Wegovy®/) received approval in November 2024 to reduce heart attack risk in adults with cardiovascular disease and a BMI of 27 or higher.
* Tirzepatide is approved for type 2 diabetes in Canada (under the trade name Mounjaro®) and was under review for weight loss (under the trade name Zepbound®).
Other new medications in development, such as orforglipron (an oral daily-dosed GLP-1 receptor agonist) and retatrutide (an injectable triple-agonist), are showing promising results for even greater weight loss potential.
Type 1 diabetes advancements
Type 1 diabetes happens when the body attacks and destroys cells in the pancreas that make insulin. As a result, people with this condition need to take insulin for the rest of their lives to stay healthy. A new medicine called teplizumab, given through an IV infusion once daily for 14 days, has the potential to delay the start of type 1 diabetes and the way it’s treated. However, it’s still too early to know exactly how teplizumab will be used and the impact it could have.
Teplizumab is meant to be used in stage 2, type 1 diabetes—that is, before someone shows signs of type 1 diabetes.
ADHD management
ADHD medicines are typically a big expense for private employer health plans, ranking as the second most costly health condition for drug claims in 2023. A new ADHD medicine called Jornay PM® is coming to Canada in early 2025. This medication is unique in that it’s taken at night, not in the morning like other ADHD medications, and it’s specifically designed for children aged 6-12. This medication features microbeads that include both a delayed-release layer (activating in the morning) and an extended-release layer (providing symptom control throughout the day).
Vyvanse®, a common ADHD medicine, became available as a cheaper generic version in June 2024, currently costing half as much as the brand-name version. This could help lower costs, but the new Jornay PM® might offset some of these savings.
Alzheimer’s disease treatments
A new class of biologic drugs have been developed to treat Alzheimer’s disease. These medicines, called amyloid beta-directed antibodies, work by helping the body clear out harmful plaques in the brain that cause memory and cognitive decline. Gi through IV infusion, they seem to work best for people in the early stages of Alzheimer’s, especially those under 75 years old. Two of these medications, lecanemab and aducanumab, are being reviewed in Canada and are already approved in the United States. They cost about US $32,000 per year in the United States.
These new medications would mean big changes in how physicians handle Alzheimer’s in that they’d need to catch the disease much earlier than they do now, and patients would need frequent brain scans to make sure the medicine is working safely.
Financial impacts for plan sponsors
Many of these new medications will have major cost impacts for plan sponsors. While these innovative treatments offer exciting possibilities for improving employee health, they also come with higher price tags that could strain benefit budgets.
Many of the upcoming drugs, such as those we highlighted earlier for diabetes, weight loss, Alzheimer’s and women’s health, are likely to be more expensive than current treatments. This is because they offer new approaches to managing these conditions or provide solutions where there weren’t options before. As a result, plan sponsors should be prepared for potential increases in their drug spend, as more employees may use these costly but effective treatments.
However, it’s worth noting that some cost relief may come from the new generic versions of existing medications, like those for ADHD. It’s important that plan sponsors work closely with their benefits advisors to find ways to balance providing access to these new, innovative treatments while keeping their benefit plans financially sustainable in the long run.
Download the full drug pipeline report
These are just a few of the latest innovations taking place right now. If you’d like to dig a little deeper, be sure to download our 2025 drug pipeline report now.
