Senator Bernie Sanders expressed confidence that Novo Nordisk A/S NVO can be persuaded to reduce the U.S. prices of its popular weight-loss drugs, Ozempic and Wegovy, by publicly highlighting the disparity between domestic and international pricing.
Sanders, who chairs the Senate Committee on Health, Education, Labor, and Pensions (HELP), plans to question Novo Nordisk CEO Lars Jorgensen during a September hearing focused on these drugs’ U.S. prices.
The Vermont senator’s strategy proved effective last year when he pressured Novo Nordisk, Eli Lilly And Co LLY, and Sanofi SA SNY to lower insulin prices.
“I think we got a real shot, and I was pleased to see President Biden supporting that effort,” Sanders told Reuters in a phone interview.
A Novo Nordisk spokesperson told Reuters that the net prices of both drugs have dropped by 40% since their launch, attributing the lack of consumer savings to pharmacy benefit managers (PBMs).
Sanders criticized this reduction as insufficient. PBMs, acting as intermediaries between drug companies and consumers, are often blamed for high drug prices. Despite this, more than 80% of insured Americans pay $25 or less per month for these drugs.
However, Sanders argued that high insurance costs, driven by the prices paid by insurers, ultimately affect all consumers.
Sanders aims to reduce the U.S. price of Ozempic to approximately $155, which is comparable to its cost in Canada.
A month’s supply of Ozempic lists for $935.77 in the U.S., while Wegovy costs $1,349.02 monthly.
Sanders acknowledged his current focus on Novo Nordisk due to its drugs’ projected profitability but stated he would soon address Eli Lilly’s prices for its rival drugs, Mounjaro and Zepbound. He described these prices as “outrageous.”
Sanders also intends to scrutinize PBMs, which dictate drug coverage and pricing. However, he emphasized that drugmakers cannot solely blame PBMs for high costs, asserting, “To say that PBMs play a negative role is true, but notwithstanding that … (the drug companies) are still ripping off the American people.”
Sanders criticized Novo Nordisk for not engaging constructively with the Senate committee, noting the company only agreed to have its CEO testify after a subpoena threat.
Price Action: NVO shares are down 2.57% at $139.08 at the last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:
Photos courtesy: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
