Senators grill Novo Nordisk CEO over costs of Ozempic, Wegovy
Senators grilled the highest govt of Novo Nordisk over why the Danish firm expenses People much more for the blockbuster weight-loss drug Wegovy and diabetes drug Ozempic than it does sufferers in Europe.
Novo Nordisk CEO Lars Fruergaard Jørgensen appeared earlier than the Senate Committee on Well being, Training, Labor and Pensions. The committee is chaired by Sen. Bernie Sanders, a Vermont unbiased who launched an investigation this 12 months into Novo Nordisk’s drug pricing.
Novo Nordisk has made practically $50 billion on the gross sales of Ozempic and Wegovy since 2018, Sanders stated. He described the U.S. as a “money cow” for Novo Nordisk, accounting for 72% of the corporate’s worldwide gross sales of these two medication.
Amongst questions posed by Sanders: Why do People pay much more for these drugs than sufferers in different international locations?
Sanders opened the listening to by displaying charts evaluating Novo Nordisk’s costs charged to People and Europeans. The corporate expenses U.S. residents $969 a month for Ozempic, however the identical drug prices $155 in Canada, $122 in Denmark, and $59 in Germany.
For the weight-loss drug Wegovy, People pay $1,349 a month. The drug will be bought for $186 in Denmark, $140 in Germany, and $92 in the UK, based on Sanders’ charts.
“No one right here is asking Novo Nordisk to supply charity to the American individuals,” Sanders stated. “All we’re saying, Mr. Jørgensen, is deal with the American individuals the identical method that you simply deal with individuals all around the world. Cease ripping us off.”
Jørgensen defended the corporate’s pricing of the wildly fashionable drugs and stated 80% of People can get these medication for $25 or much less per 30 days.
He stated U.S. record costs cannot be in comparison with costs charged in different international locations, partly, because of the nation’s advanced construction. U.S. costs are influenced by medical insurance corporations and drug-pricing middlemen referred to as pharmacy profit managers.
Jørgensen stated the diabetes drug Ozempic is roofed by the overwhelming majority of personal medical insurance plans, in addition to Medicare and Medicaid, the federal government medical insurance packages for seniors and low-income households. Wegovy is roofed by about half of personal well being insurers, Medicaid plans in 20 states and the Division of Veterans Affairs.
“You’ve gotten stated that our superb medicines can not help sufferers if they can not afford them ‒ that’s true,” Jørgensen stated. “It’s also true that the total worth of Ozempic and Wegovy can solely be realized if sufferers can entry them. Sufferers want affordability and entry.”
Medicare, the federal well being program for adults 65 and older, is prohibited by regulation from masking medication for individuals who are overweight however in any other case would not have severe danger elements. However overweight sufferers with diabetes or coronary heart illness might qualify for protection. The nonprofit well being coverage group KFF estimated that 1 in 4 Medicare enrollees who’re overweight could also be eligible for Wegovy to scale back their danger of coronary heart assault or stroke.
The committee additionally highlighted a March examine from researchers at Yale College discovered these medication may very well be made for lower than $5 a month, or $57 per 12 months. Final week, Sanders introduced CEOs of main generic pharmaceutical corporations can be prepared to promote Ozempic to People for lower than $100 per 30 days, at a revenue. Nevertheless, such estimates don’t account for the costly prices of researching and growing medication and testing them in medical trials.
Jørgensen stated Novo Nordisk scientists have labored on the weight-loss medication because the early Nineteen Nineties. The corporate additionally has dedicated $30 billion to increase manufacturing capability to deal with provide shortages of the drugs.
Representatives of drug trade’s commerce group PhRMA stated well being insurers and pharmacy profit managers deserve extra scrutiny in relation to drug affordability.
“The one query everybody must be asking is why aren’t insurers and PBMs being compelled to reply for denying protection and driving up sufferers’ prices?” stated Alex Schriver, senior vp of public affairs at PhRMA: “Senator Sanders continues repeating the identical deceptive rhetoric on drug costs. However why gained’t he speak about how insurance coverage conglomerates are taking in report earnings or how PBMs are being investigated and sued for his or her abusive ways?”
