US senators pressed Novo Nordisk CEO Lars Fruergaard Jørgensen on Tuesday over the stark difference in prices for the company’s popular diabetes and weight-loss drugs, Ozempic and Wegovy, in the United States versus other countries.
The Senate hearing, led by Senator Bernie Sanders (I-Vt.), chair of the Senate Health Committee, focused on why Americans are paying significantly more for these medications than patients in Europe and Canada.
Sanders highlighted the price gap, pointing out that Ozempic costs around $969 per month in the US, while the same drug sells for $155 in Canada, $122 in Denmark, and just $59 in Germany. Similarly, Wegovy, which costs $1,349 per month in the US, is priced at a fraction of that in Europe.
“Treat the American people the same way that you treat people all over the world,” Sanders said.
He accused Novo Nordisk of charging Americans unfairly high prices.
In his testimony, Jørgensen explained that Novo Nordisk has little control over what US patients ultimately pay for the drugs, blaming the complexities of the American healthcare system. He pointed to pharmacy benefit managers (PBMs), middlemen that negotiate drug prices with insurance companies, for inflating costs. According to Jørgensen, Novo Nordisk receives only a portion of the list price due to rebates, discounts, and fees paid to these intermediaries.
“We pay 75 cents of every dollar of medicine we sell back into this complex system,” Jørgensen stated.
He added that more than 80% of US patients with insurance pay less than $25 per prescription due to these rebates.
Despite Jørgensen’s explanation, senators from both parties expressed frustration over the wide price disparity. While some, including Sen. Roger Marshall (R-Kan.), a physician, sympathized with the company’s position, others urged Jørgensen to reduce the list prices in the US if PBMs committed not to limit access to the drugs.
“If in fact they keep their commitment, are you prepared to lower list prices?” Sanders asked.
Jørgensen responded that he would be open to discussions with PBMs if it ensured more affordable access for patients.
The soaring success of Ozempic and Wegovy, which work by helping patients control blood-sugar levels and lose weight, has made Novo Nordisk one of the most valuable pharmaceutical companies globally. However, critics have pointed to the high cost of these drugs in the US, where coverage for weight-loss medications like Wegovy is often limited, leaving many patients to pay out of pocket. A Yale University study published earlier this year also noted that the active ingredient in Ozempic could be produced for under $5 a month, a stark contrast to its current price.
In addition to pricing concerns, the hearing touched on broader issues of transparency and fairness in the pharmaceutical industry. The debate highlighted the role of PBMs, which have come under increased scrutiny for their role in determining drug prices, and ongoing concerns about the affordability of life-saving medications for Americans.
The Washington Post, CNN, and Axios contributed to this report.
