Sen. Bernie Sanders (I-Vt.) has taken a stand against the "outrageous" prices of diabetes drug Ozempic by Novo Nordisk NVO. He is considering hearings on the issue and is seeking a meeting with the company’s CEO to discuss reducing the drug’s price.
What Happened: Sanders, who chairs the Senate Health, Education, Labor, and Pensions (HELP) Committee, is concerned about the high cost of Ozempic.
Ozempic is sometimes used controversially for weight loss by suppressing appetite.
He plans to meet with ‘Miracle’ weight loss drug maker’s CEO, Lars Fruergaard Jørgensen, to discuss lowering the list prices of the drug.
"This outrageously high price has the potential to bankrupt Medicare, the American people and our entire health care system."
"We cannot allow that to happen."
The senator’s decision was influenced by a recent study published in the JAMA Network, which suggested that the manufacturing cost of Ozempic is significantly lower than its current price.
Sanders highlighted that the drug costs less than $5 a month to produce, yet it is sold for nearly $1,000 a month in the U.S.
Novo Nordisk, however, has defended its pricing, stating that most U.S. patients covered by commercial health plans pay $25 or less a month for their prescriptions, reported Business Insider.
The company also emphasized its $5 billion global investment in research and development in 2023.
Sanders warned that the high price of Ozempic not only makes it unaffordable for many who need it but also poses a risk to Medicare and the entire U.S. healthcare system.
Why It Matters: The cost of Ozempic has been a topic of concern for some time. A study conducted in March revealed that the drug could be manufactured for less than $5 a month, despite being sold for nearly $1,000 a month in the U.S., but only $155 a month in Canada and $59 in Germany.
Novo Nordisk’s pricing strategy has also sparked discussions about the drug’s potential impact on the broader economy. Some, like prominent Tesla investor Ross Gerber, have suggested that using Ozempic could lead to significant cost savings.
Price Action: Novo Nordisk's stock closed 0.35% up at $128.40 on Friday, according to Benzinga Pro.
Read Next: Bernie Sanders Calls For 32-Hour Workweek Without Pay Cut: ‘The Time Is Long Overdue’
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