Goldman says BCBSM modifications to GLP-1 coverage positive for WW

Goldman Sachs notes that Blue Cross Blue Shield of Michigan, or BCBSM, posted an alert on September 21 notifying providers of a change in authorization criteria for GLP-1 weight loss drugs such as Novo Nordisk’s (NVO) Wegovy. The explanation from BCBS of Michigan for these changes is that the weight loss drug therapy is highly effective when used alongside healthy diets and exercise, which is a line of reasoning is consistent with WW (WW) management remarks, says the analyst, who also notes that under the new criteria patients will be required to be on a lifestyle modification program for at least six months before granted approval for weight loss drug therapy. The analyst, who views these developments as positive for WW, keeps a Buy rating and $17 price target on WW shares.