Novo Nordisk CEO Grilled by Senators Over High Cost of Ozempic and Wegovy in the US

Sen. Bernie Sanders, the chairman of the Senate Committee on Health, Education, Labor and Pensions, recently grilled Novo Nordisk CEO Lars Fruergaard Jørgensen over the exorbitant pricing of the weight-loss drug Wegovy and diabetes drug Ozempic in the United States.
Comparing Pricing Across Borders
Sanders raised concerns over the stark differences in drug prices between the US and European countries. According to Sanders' data, Americans pay $969 a month for Ozempic, while the same drug costs significantly less in Canada, Denmark, and Germany. Similarly, Wegovy is priced at $1,349 in the US, compared to prices well below $200 in Europe.
Defending Pricing Strategies
Jørgensen defended Novo Nordisk's pricing strategy, highlighting that 80% of Americans have access to these drugs for $25 or less per month. He attributed the pricing variations to the complexities of the US healthcare system, which involves health insurance companies and pharmacy benefit managers.
Ensuring Affordability and Access
Jørgensen emphasized the importance of affordability and access to these life-saving medications. He mentioned that Ozempic and Wegovy's true value can only be realized if patients can afford and access them.
Challenges to Medicare Coverage
While Medicare does not cover weight-loss drugs for obese individuals without serious risk factors, patients with conditions like diabetes or heart disease may qualify for coverage. Researchers have estimated that a significant number of Medicare enrollees who are obese could benefit from Wegovy to reduce their risk of heart attack or stroke.
Calls for Transparency
The hearing also brought attention to a study suggesting that these drugs could be produced for significantly less than what they are currently being sold for. Calls for more transparency in the roles of health insurers and pharmacy benefit managers were echoed, questioning their impact on drug affordability.
Looking Towards the Future
Novo Nordisk has invested billions in expanding manufacturing capacity to address supply shortages of these medications. The company's commitment to ensuring patient access, along with ongoing discussions on pricing and affordability, will likely continue to be in the spotlight.