Novo Nordisk’s CEO, Lars Fruergaard Jørgensen, faced scrutiny from US lawmakers on Tuesday over the high prices of the company’s weight loss drug Wegovy and its diabetes treatment Ozempic.
The hearing, held by the Senate Health, Education, Labor and Pensions (HELP) Committee, was part of an ongoing investigation into the Danish drugmaker’s pricing practices, led by Senator Bernie Sanders.
Sen. Sanders, who chairs the panel, has raised concerns about the price disparity between what Americans pay for these drugs compared to patients in other countries. In the US, Wegovy can cost as much as $1,350 per month, while Ozempic is nearly $969 monthly, before insurance. In contrast, the drugs can be significantly cheaper abroad, with Wegovy priced at $92 in the UK and Ozempic costing just $59 in Germany, according to committee findings.
Sanders emphasized that these inflated costs are a burden on the US healthcare system. He pointed out that Medicare spent $4.6 billion on Ozempic in 2022 alone. The senator also noted that the skyrocketing demand for these drugs, coupled with high prices, could strain the system further, estimating it could cost the US $411 billion annually if half of Americans used weight-loss medications from Novo Nordisk and its rival Eli Lilly.
Novo Nordisk’s drugs are part of a class known as GLP-1s, which help control appetite and blood sugar levels. However, there are no generic alternatives to these medications in the US, and many health insurance plans do not cover them for weight loss, leading to concerns about accessibility and affordability for patients.
Jørgensen defended the company’s pricing, arguing that the high costs reflect the investment in research and development required to bring such breakthrough drugs to market. However, Sanders countered by pointing out that generic pharmaceutical companies claim they could produce versions of Ozempic for less than $100 a month.
The hearing is part of broader efforts by US lawmakers and the Biden administration to tackle rising healthcare costs, particularly prescription drug prices. Ozempic is expected to be included in future price negotiations under the Inflation Reduction Act, which aims to reduce drug costs for seniors.
