Novo Nordisk‘s prime govt faces a Senate grilling on Tuesday over the excessive costs of the corporate’s weight reduction drug Wegovy and diabetes therapy Ozempic, as demand for each injections soars within the U.S.
Novo Nordisk CEO Lars Fruergaard Jørgensen instructed lawmakers at a Senate Well being, Schooling, Labor and Pensions Committee listening to in Washington, D.C that he desires to work with them on coverage options that can assist sufferers entry reasonably priced drugs. However he didn’t explicitly vow to slash costs for its common therapies. The testimony comes roughly 5 months after Sen. Bernie Sanders, the Vermont impartial who chairs the Senate panel, opened an investigation into the Danish drugmaker’s pricing practices.
“All we’re saying, Mr. Jørgensen, is deal with the American folks the identical approach that you simply deal with folks everywhere in the world,” Sanders stated throughout the listening to Tuesday. “Cease ripping us off.”
He famous that Novo Nordisk has raked in almost $50 billion in gross sales from Wegovy and Ozempic, with most of that income coming from the U.S. Sanders contends that Novo Nordisk costs Individuals considerably greater costs for its blockbuster medicine than it does for sufferers in different nations. Earlier than insurance coverage, Ozempic prices almost $969 per 30 days and Wegovy prices nearly $1,350 per 30 days within the U.S.
U.S. Sen. Bernie Sanders (I-VT) speaks throughout Novo Nordisk CEO Lars Jorgensen’s listening to earlier than a Senate Well being, Schooling, Labor, and Pensions Committee on U.S. costs for the burden loss medicine Ozempic and Wegovy, on Capitol Hill in Washington, U.S., September 24, 2024.
Piroschka Van De Wouw | Reuters
In the meantime, each therapies can value as little as below $100 for a month’s provide in some European nations, in response to a launch from the committee. Ozempic prices simply $59 in Germany, whereas Wegovy prices $92 within the U.Okay.
Sanders additionally stated final week that the CEOs of main generic pharmaceutical corporations have instructed him that they may promote a model of Ozempic for lower than $100 a month at a revenue. There are at the moment no generic options to Ozempic out there within the U.S.
Sanders added that he obtained commitments in writing from all the main pharmacy profit managers – middlemen who negotiate drug rebates with producers on behalf of insurers – that they might be capable to develop protection of Wegovy and Ozempic if Novo Nordisk diminished their listing costs.
In the meantime, Novo Nordisk argues that it has spent billions to analysis, develop and develop manufacturing for the therapies and is funneling more cash into researching their potential to deal with different obesity-related well being circumstances. That funding has prolonged and improved the lives of tens of millions of Individuals, which helps scale back the health-care prices related to weight problems and diabetes, in response to written testimony from Jørgensen.
Novo Nordisk CEO Lars Jorgensen testifies earlier than a Senate Well being, Schooling, Labor, and Pensions Committee listening to on U.S. costs for the burden loss medicine Ozempic and Wegovy, on Capitol Hill in Washington, U.S., September 24, 2024.
Piroschka Van De Wouw | Reuters
Through the listening to, Jørgensen stated the corporate has fought to safe private and non-private insurance coverage protection for the medicines.
He additionally partially blamed the “advanced U.S. healthcare system” for making it troublesome for sufferers to entry reasonably priced prescribed drugs, noting that “no single firm alone can remedy such huge and sophisticated coverage challenges.”
Jørgensen promised that Novo Nordisk will “stay engaged and work with this committee on coverage options to deal with the structural points that drive up prices.”
Sanders requested Jørgensen if Novo Nordisk might decide to considerably decreasing the listing costs of Wegovy and Ozempic.
Whereas Jørgensen didn’t explicitly vow to slash costs, he stated “something that can assist sufferers get entry to reasonably priced drugs, we’ll be completely happy to look into.”
However Jørgensen contended that decreasing costs might have penalties. He stated Novo Nordisk minimize the U.S. listing worth of sure insulin merchandise final 12 months, which brought about a few of them to be excluded from sure formularies, or lists of medicines coated by insurance coverage.
“So I’ve a little bit of concern how this might play out,” he stated.
Sanders and different lawmakers, well being specialists and insurers have warned that the insatiable demand for Novo Nordisk’s medicine and comparable weight reduction and diabetes therapies from rival Eli Lilly might doubtlessly bankrupt the U.S. health-care system until costs drop.
Each drugmakers make GLP-1s, which mimic hormones produced within the intestine to tamp down an individual’s urge for food and regulate their blood sugar. Eli Lilly’s weight reduction injection Zepbound and diabetes drug Mounjaro equally value round $1,000 per 30 days earlier than insurance coverage and different rebates.
In a launch, the Senate Well being Committee stated it will value the U.S. $411 billion per 12 months if half of all Individuals took weight reduction medicine from Novo Nordisk and Eli Lilly. That is $5 billion greater than what Individuals spent on all prescribed drugs in 2022.
Medicare spent $4.6 billion on Ozempic in 2022 alone, in response to well being coverage analysis group KFF.
Different insurers and employers have applied strict necessities to regulate weight reduction drug prices, or have dropped protection of these therapies altogether. Many well being plans cowl GLP-1s for diabetes, however not for weight reduction. The federal Medicare program does not pay for weight reduction therapies until they’re authorized and prescribed for one more well being situation.
The listening to comes because the Biden administration and lawmakers on each side of the aisle attempt to rein in health-care prices within the U.S., partially by pressuring the pharmaceutical trade and drug provide chain middlemen. On common, Individuals pay two to a few instances greater than sufferers in different developed nations for prescribed drugs, in response to a truth sheet from the White Home.
Notably, Ozempic will seemingly be topic to the subsequent spherical of worth negotiations between producers and Medicare — a key provision of President Joe Biden’s Inflation Discount Act that goals to decrease prices for seniors. Wall Avenue analysts say Ozempic will seemingly be eligible for negotiations by the point the subsequent spherical of medication is chosen in 2025, for worth adjustments that can go into impact in 2027.