Lars Fruergaard Jørgensen, CEO of Novo Nordisk, is set to face a Senate hearing on Tuesday regarding the steep prices of the company's weight loss drug, Wegovy, and diabetes treatment, Ozempic. The Senate Health, Education, Labor and Pensions Committee, led by Sen. Bernie Sanders, is investigating claims that Americans pay significantly more for these medications compared to patients in other countries, with Ozempic costing nearly $969 and Wegovy around $1,350 monthly in the U.S. In contrast, prices in some European nations can drop to under $100.
Sen. Sanders has highlighted that generic versions of Ozempic could potentially be sold for less than $100, yet no such alternatives are currently available in the U.S. The Senate committee warns that the soaring demand for these drugs could threaten the U.S. healthcare system’s sustainability, projecting that if half of Americans used these medications, it could cost the U.S. $411 billion annually. Amid ongoing efforts to curb healthcare costs, the hearing will also address the impact of high drug prices on Medicare and insurance coverage. Ozempic is anticipated to be included in future price negotiations under the Biden administration's Inflation Reduction Act, aiming for reductions effective by 2027.
The hearing comes as the Biden administration and lawmakers on both sides of the aisle try to rein in health-care costs in the U.S., in part by pressuring the pharmaceutical industry and drug supply chain middlemen. On average, Americans pay two to three times more than patients in other developed nations for prescription drugs, according to a fact sheet from the White House. Notably, Ozempic will likely be subject to the next round of price negotiations between manufacturers and Medicare — a key provision of President Joe Biden’s Inflation Reduction Act that aims to lower costs for seniors. Wall Street analysts say Ozempic will likely be eligible for negotiations by the time the next round of drugs is selected in 2025, for price changes that will go into effect in 2027.
subject to the next round of price negotiations between manufacturers and Medicare — a key provision of President Joe Biden’s Inflation Reduction Act that aims to lower costs for seniors. Wall Street analysts say Ozempic will likely be eligible for negotiations by the time the next round of drugs is selected in 2025, for price changes that will go into effect in 2027.
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