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Novo Nordisk’s Top Executive Faces Senate Grilling Over Drug Prices
Novo Nordisk, a major pharmaceutical company, has come under fire for the high prices of its popular weight loss drug Wegovy and diabetes treatment Ozempic. With demand soaring in the U.S., the company’s CEO Lars Fruergaard Jørgensen faced tough questions from the Senate Health, Education, Labor and Pensions Committee in Washington, D.C.
During the hearing, Jørgensen did not promise to slash prices for the drugs, but he expressed willingness to work with policymakers to address the underlying issues that drive up prescription drug costs. This commitment followed calls from Senator Bernie Sanders to lower prices and treat Americans fairly compared to patients in other countries.
Sanders highlighted the stark price difference between what Americans pay for Ozempic and Wegovy compared to patients in Europe. For example, in some European countries, these treatments can cost as little as under $100 per month. In contrast, in the U.S., Ozempic costs nearly $969 per month and Wegovy costs almost $1,350 per month before insurance.
One of the proposed solutions to make these drugs more accessible to patients is to lower their list prices to around $100 per month. Major pharmacy benefit managers, including UnitedHealth Group’s Optum Rx and CVS’s Caremark, have expressed support for this approach.
Novo Nordisk has defended its pricing strategy, citing the significant investments in research and development that have gone into developing these medications. The company is also exploring the potential of these drugs to treat other obesity-related health conditions, which could have broader implications for reducing healthcare costs associated with obesity and diabetes.
As discussions around drug pricing continue, lawmakers are grappling with the impact of high prices on the healthcare system. Both Novo Nordisk and its competitor, Eli Lilly, manufacture GLP-1 drugs that play a crucial role in weight loss and diabetes management. If half of all Americans took weight loss drugs from these companies, it could cost the U.S. $411 billion per year, posing a significant challenge to the healthcare budget.
The Biden administration and lawmakers are actively working to address healthcare costs, including prescription drug prices. Initiatives like the Inflation Reduction Act aim to lower costs for seniors by facilitating negotiations between drug manufacturers and Medicare. Novo Nordisk’s Ozempic is expected to be part of these negotiations in the future, potentially leading to changes in drug pricing and access.
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