Topline
Lars Jørgensen, chief executive of the Ozempic manufacturer Novo Nordisk, defended the prices of the company’s popular diabetes and weight loss medication in testimony to a Senate committee on Monday, as lawmakers scrutinize Ozempic’s costly list price.
A committee report found the weight loss drug is offered for less than $100 in some European … [+]
Key Facts
Jørgensen, in testimony to the Senate Committee on Health Education, Labor and Pensions, argued Novo Nordisk is reducing health care costs among Americans with obesity and type 2 diabetes while the U.S. spends about $1.7 billion and $413 billion annually to treat either condition, respectively.
Ozempic’s price has decreased by about 40% since it was first put on the market in 2017, Jørgensen said, noting a similar decline since 2021 for Wegovy, the company’s injection for weight management among adults who are overweight or obese.
While monthly supplies of Ozempic and Wegovy are sold for $968.52 and $1,349.02, respectively, Sen. Bernie Sander, I-Vt., said last week the chief executives of unnamed pharmaceutical firms indicated generic versions of Ozempic could be sold for less than $100 a month.
Jørgensen also criticized the American healthcare system, suggesting patients who require Ozempic or Wegovy have difficulty accessing prescriptions for either drug, adding Novo Nordisk would assist the HELP committee to “address structural issues that harm patients and drive up costs,” though he did not specify which issues.
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What To Watch For
Jørgensen said Ozempic and Wegovy will become eligible for price negotiations with the U.S. Centers for Medicare and Medicaid Services in 2025, likely lowering the drugs’ costs. Ulrich Otte, Novo Nordisk’s senior vice president of finance and operations, reportedly said last week it was “very likely” the drugs would be eligible for negotiations.
Surprising Fact
A monthly supply of Ozempic is sold for $59 in Germany and $155 in Canada, according to a HELP report released in April.
Key Background
Ozempic, a weekly injection approved for treating type 2 diabetes but often prescribed off-label for weight management, has faced increased scrutiny from the U.S. as the drug’s surging popularity results in shortages. Sanders has criticized Novo Nordisk over its drug prices, demanding the company lower its “outrageously high” prices for Ozempic and Wegovy earlier this year. Sanders, citing a study from Yale University, previously claimed Ozempic costs less than $5 to manufacture, though Jørgensen has noted the company spent $4.2 billion on research and developing diabetes and obesity treatment in 2023. Novo Nordisk has also invested $30 billion to expand manufacturing since last year, Jørgensen said, most of which is focused on producing Ozempic and Wegovy. Those investments are expected to significantly increase production capacity for the company’s medicines, including Ozempic, Wegovy and other obesity treatments in development by 2028, Novo Nordisk said.
