Ozempic and Wegovy too pricey for you? At a monthly price of $969-$1,349, respectively, they certainly pack a punch on a person’s bank account.
Now, Novo Nordisk's CEO claims that both of those weight loss drugs can be priced lower, contradicting the expectations of some critics.
For months, U.S. lawmakers have criticized Novo Nordisk for the high monthly list prices of Ozempic and Wegovy, both of which are 10 to 15 times cheaper in other countries.
For example, folks in Germany pay $140 a month for a Wegovy prescription and just $92 in the U.K. Denmark-based Novo Nordisk has attributed the price gap to the complexities of the U.S. pharmaceutical industry.
"Even when we reduce our prices, patients in the United States often don’t see the benefits — this is a significant issue," a spokesperson told Becker’s. The company also noted that it only receives about 60% of the U.S. list prices after pharmacy benefit managers take their rebates and fees.
Will what goes up, go down?
This whole thing has created headaches for both employers and employees, with both sides of the table spending over $400 billion on obesity care in 2023. And they don’t like it, either.
A recent survey by the Business Group on Health of 125 companies covering 17.1 million employees, found that about 79% of employers have noticed increased interest in obesity medications, and 96% are concerned about their long-term cost implications.
It’s not over, either. Employers anticipate an 8% rise in healthcare costs by 2025, partly due to the impact of GLP-1 medications. As a result, several companies have already reduced GLP-1 coverage for their employees because of escalating expenses.
But Novo Nordisk CEO Lars Fruergaard Jørgensen says, despite how much has been spent on these drugs, their use is actually helping to cut overall healthcare costs. He told NBC Nightly News that by aiding in weight loss, these drugs could lead to reduced medical expenses, disability payments, workers' compensation, and absenteeism for both employers and employees.
"We are offering products that help alleviate the financial burden of healthcare," Jørgensen said, adding that more than 80% of insured Americans pay $25 or less for a month’s supply of the drugs.
"We are actually providing products that are actually helping take that cost burden off," Jørgensen told the news outlet, adding that more than 80% of insured Americans pay $25 or less for a month's supply.
The company clarifies
Jørgensen's comment was clarified by the company in an email to ConsumerAffairs, saying that “80% of Americans with commercial insurance coverage for Ozempic and Wegovy pay anywhere from $0-$25 for a monthly prescription as that is their co-pay under their coverage.”
How? Novo didn't offer an explanation, but RealClearHealth's Kirsten Axelson says, "It's due to discounts negotiated between insurance plans and pharmaceutical companies, and also the existing rebates required by the federal government to provide drugs in insurance for low-income people."
A rather small window, but at least it's there and available.
Time will tell if what Jørgensen is selling has legs. He's scheduled to testify at a Senate Health, Education, Labor, and Pensions Committee hearing on September 24 about the pricing of Ozempic and Wegovy. Users of either medication should keep their fingers crossed that Jørgensen’s pitch comes to fruition.