Novo Nordisk's Popular Weight Loss Drug Wegovy Might Be Heavy On Denmark's Healthcare System

The Danish Health Ministry released a statement suggesting that reimbursing Novo Nordisk A/S's NVO weight-loss drug, Wegovy, for the obese population could result in an annual cost of up to $4 billion for the state.

Wegovy is a highly popular medication for weight loss. Besides its primary use, the drug also shows cardiovascular benefits. 

This advantage might pave the way for Novo Nordisk to market Wegovy beyond just a lifestyle medication. 

According to the Danish Health Ministry, if the state were to cover the cost of Wegovy for approximately 900,000 Danes – those with a Body Mass Index surpassing 30, the annual financial implications could range between DKK23.9 billion-DKK27.9 billion (equivalent to $3.5 to $4 billion). 

The calculation was based on prices and medicine reimbursements for this year, Reuters reported.

A quick calculation by Reuters estimates that this would translate to a monthly outlay of roughly $375 for every patient in the Danish public healthcare system.

With a price tag exceeding $1,000 monthly, Wegovy currently has limited availability, with its presence restricted to Denmark, Norway, Germany, and the U.S. In Denmark, the public compensation for medications increases incrementally as the yearly cost per patient accumulates. 

This year, the capped self-contribution towards medicines is pegged at DKK11,570 per patient.

The increasing costs of healthcare and the advent of new medications like Wegovy spotlight the financial challenges public healthcare systems face, especially when balancing the scales of medical advancement and public affordability.

Price Action: NVO shares are up 0.65% at $187.64 on the last check Monday.