Novo Nordisk's NVO CEO Lars Fruergaard Jorgensen, has revealed that their diabetes medication and often hailed as a “miracle” weight loss drug, Ozempic will soon be eligible for U.S. government price negotiations, potentially within the next year.
What Happened: Jorgensen is scheduled to testify before a Senate committee on Tuesday to discuss U.S. pricing for Ozempic and the weight loss drug Wegovy. The comments align with Wall Street analysts’ expectations that Ozempic will be on the 2027 price negotiation list, which will be announced in February 2025, Reuters reported.
Last week, another Novo executive indicated that Ozempic would “very likely” be included in the 2027 list. A month’s supply of Ozempic currently lists at $935.77 in the U.S., while Wegovy lists for $1,349.02 per month, although insurance often reduces these costs.
The Inflation Reduction Act of 2022 permits Medicare to negotiate prices for costly prescription drugs, impacting millions of Americans. Both Ozempic and Wegovy have faced scrutiny from lawmakers over their high prices in the U.S.
Jorgensen noted that the net price of Ozempic has decreased by about 40% since its U.S. introduction, and Wegovy’s net price has similarly declined since its launch. He expects net prices for both drugs to continue to fall under current market conditions.
Why It Matters: The upcoming Senate hearing, scheduled for Tuesday, will see Lars Fruergaard Jorgensen face rigorous questioning from U.S. lawmakers regarding the high prices of Ozempic and Wegovy. Senator Bernie Sanders, chair of the Senate Committee on Health, Education, Labor, and Pensions, has been vocal about the exorbitant costs of these medications.
In a previous interview, Jorgensen defended the high U.S. prices, arguing that these drugs help reduce the economic burden of obesity-related health issues, which costs the U.S. over $400 billion annually. He dismissed accusations that Novo Nordisk operates as a drug cartel as “unfounded.”
Additionally, the issue of counterfeit Ozempic has emerged as a significant concern. Criminals have been distributing fake versions of the drug by forging batch numbers, which has become an international issue. The World Health Organization and Interpol have both issued warnings about these counterfeit products.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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