Patrick Wingrove
(Reuters) – U.S. Senator Bernie Sanders will testify towards Novo Nordisk (NYSE:) Chief Government Lars Jorgensen on Tuesday in regards to the drugmaker It is elevating questions in regards to the costs of widespread weight reduction and diabetes medicine that may price Individuals greater than $1,000 a month.
Sanders is anticipated to query the CEO at a listening to of the Senate Well being, Training, Labor and Pensions Committee (HELP), which he chairs, questioning why the corporate prices U.S. payers greater than another nation. The price of life-saving drugs.
Semaglutide, a GLP-1 drug marketed as Wegovy for weight reduction and Ozempic for kind 2 diabetes, has been proven to assist sufferers lose a median of 15% of their physique weight.
One-month provides of Ozempic and Wegovy are listed in the USA at $935.77 and $1,349.02, respectively, which Sanders has beforehand argued is way increased than their listing costs in some European nations, that are $59 and $92 respectively.
Sort 2 diabetes prices the USA about $413 billion yearly, whereas weight problems prices $1.7 trillion yearly, Jorgensen is anticipated to say, in keeping with ready remarks seen by Reuters.
He’s additionally anticipated to say that sufferers typically wrestle to navigate the U.S. healthcare system and that Novo will work with HELP to “deal with the structural points that damage sufferers and drive up prices.”
Jorgensen stated in a written assertion to the committee that Novo spent $4.2 billion on diabetes and weight problems analysis and improvement in 2023 alone.
He stated 99% of U.S. business insurance policy now cowl Ozempic, and about half cowl Wegovy. He added that greater than 80% of U.S. sufferers with drug insurance coverage pay lower than $25 a month for his or her drugs, and 90% pay lower than $50 a month.
The CEO stated Novo Nordisk has dedicated $30 billion to broaden manufacturing capability because the starting of final yr, principally for GLP-1 medicine, together with final June to broaden its North Carolina plant. $4.1 billion.
Demand for Ozempic and Wegovy, in addition to rival medicine from Eli Lilly and Co (NYSE: ), has soared, resulting in shortages of the medicine for a lot of the yr.
Jorgensen stated Ozempic prices have dropped about 40% since launch, and Wegovy prices have dropped equally for payers who obtain reductions.
Sanders stated earlier this month that generic drugmakers had confirmed they might promote a generic model of Ozempic for lower than $100 a month, after saying the excessive price of the medicine threatened to bankrupt the U.S. healthcare system.
Jorgensen stated Ozempic could be eligible to barter U.S. authorities costs for its Medicare well being plans in 2027, assuming it meets different authorized standards. The corporate beforehand informed analysts it anticipated Medicare to barter costs for Ozempic and Wegovy that yr.
