Denmark Mulls Changes To Diabetes Drug Subsidies: A Closer Look At Weight Loss Drug Debate

A public commission in Denmark has recommended the cessation of subsidies for GLP-1 drugs, including Ozempic and similar medications, as a primary treatment for type 2 diabetes. 

Novo Nordisk A/S NVO has seen a surge in demand for Ozempic and its sister drug Wegovy, a weight-loss medication based on similar ingredients.

The proposal, which aims to prioritize cost-effective alternatives as the initial therapeutic option, was released on Tuesday and is open for public review and commentary until October 8. 

The final decision will rest with the Danish Medicines Agency, Reuters noted.

GLP-1 drugs, hailed for their effectiveness in controlling blood sugar levels, have long been a go-to choice for managing type 2 diabetes. 

However, the Danish commission's stance challenges this convention, citing the higher cost of GLP-1 drugs compared to other available treatments. The commission argues that despite their elevated price point, these drugs do not provide a universally superior advantage in treating patients with type 2 diabetes.

According to data from the Danish Medicines Agency, approximately 87,400 individuals in Denmark received subsidized GLP-1 drugs for type 2 diabetes in the previous year. 

The European Medicines Agency is investigating Novo Nordisk's weight-loss medications amid reports of suicidal risks associated with these drugs.

The investigation follows referrals from the Icelandic Medicines Agency, which reported two cases of suicidal thoughts linked to the drugs Saxenda and Ozempic.

Price Action: NVO shares are up 0.95% at $186.76 during the premarket session on the last check Wednesday.