Weight loss drugs, Wegovy and Ozempic, were found to have higher prices in the US as demand increases, and it's time for Novo Nordisk CEO to explain their reasons in the Senate hearing.
According to CNBC, CEO Lars Fruergaard Jørgensen will be grilled this Tuesday at a Senate Health, Education, Labor, and Pensions Committee hearing in Washington, D.C. This came five months after Senator Bernie Sanders investigated their pricing practices. Specifically, Sanders argued that Novo Nordisk put Wegovy and Ozempic at higher prices in the US than in other countries.
Without insurance, Wegovy is $1,350, and Ozempic is $969 monthly for Americans. European countries are only charged less than $100 for a month's supply. The same report showed that Wegovy is $92/mo in the UK and Ozempic is $59/mo in Germany.
READ MORE: Joe Biden, Bernie Sanders Urge Novo Nordisk and Eli Lilly to Lower Prices of Weight Loss Drugs
The Impact of Novo Nordisk's Higher Prices in the US
As shared by Reuters, the dangers of high weight loss and diabetes drugs in the US can lead to the bankruptcy of the country's health care system. The health committee revealed it would cost the US $411 billion per year, especially if more Americans take these drugs.
Overall, it will be $5 billion more than 2022's consumer spending on all prescription drugs. According to the CNBC report, Medicare already spent $4.6 billion on Ozempic in 2022 since it's a drug used for diabetes. This doesn't cover other weight loss drugs unless linked to other health issues, as insurance companies still have strict rules in their drug coverage.
Looking ahead, Wegovy and Ozempic are expected to be included in price negotiations between manufacturers and Medicare as part of Biden Admin's Inflation Reduction Act. Any price changes will take effect in 2027.
READ NEXT: Novo Nordisk CEO to Testify Before Senate After Sanders' Subpoena Threat Over Drug Pricing
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