Novo Nordisk CEO Lars Fluergaard Jorgensen has defended his company’s drug pricing, which Sen. drew attention to the complexity of
Sanders accused the company of potentially causing a rise in stock prices. medical expenses For all Americans.
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“The prices of these drugs are so high in the U.S. that everyone could be forced to pay for Novo Nordisk’s profit maximization strategy through higher premiums and taxes, regardless of whether they use the products. It’s expensive,” Sanders said. I wrote In an open letter to Jorgensen, he said:
On the other hand, Jorgensen defended The company blamed the high costs on the U.S. health care system, not corporate greed, during a hearing before the Senate Health, Education, Labor, and Pensions Committee (HELP). While Jorgensen acknowledged that Americans pay more than consumers in Europe and the United Kingdom, he emphasized that many patients still have access to the drug at affordable rates of $25 to $50 per month. did.
The debate highlights growing tensions over surging demand for GLP-1 drugs. GLP-1 drugs were originally developed for type 2 diabetes, but their popularity has skyrocketed due to their ability to help people lose weight.
Price controversy surrounding Novo Nordisk
Sen. Sanders has been vocal about the wide disparity in prices of the Denmark-based drug company’s products, particularly Ozempic and Wigoby, in different countries. Sanders emphasized that while Americans pay $969 for a month’s supply of Ozempic, the cost is significantly lower in other countries.
For example, the same supplies cost $155 in Canada, but only $59 in Germany. Similarly, Wegovy costs $1,349 per month for Americans, compared to $140 in Germany and $92 in the UK.
According to Bloomberg News analysis According to Saunders’ statement, Novo Nordisk’s diabetes and obesity drugs already had sales of nearly $50 billion in the second quarter of 2024, according to regulatory filings and analyst estimates. 72% of its sales come from U.S. consumers. ×.
According to Bloomberg, sales are expected to reach $65 billion by the end of the year.
read more: Wealthy young Americans are distancing themselves from the turbulent stock market — Here are the alternative assets they are relying on instead:
testimony
September 24, 2024 Mr. Jorgensen did not hesitate to act aggressively to protect his company’s prices.
He highlighted that despite the high prices, more than 80% of U.S. patients with Ozempic or Wegovy health insurance pay less than $25 per prescription. Jorgensen said the system has helped ease the financial burden for many insured people, even though widespread concerns about affordability remain.
Jorgensen also noted that Ozempic’s net price in the U.S. has fallen by about 40% since it was first introduced in 2018, with rising costs largely due to intermediaries that manage insurance companies’ prescription drug plans. He emphasized that it is up to pharmacy benefit managers (PBMs) to Ozempic is currently the lowest priced once-weekly GLP-1 drug available on the U.S. market.
Looking to the future
As a member of the HELP Committee, Senator Sanders continues to push for greater transparency from Novo Nordisk regarding its internal decision-making processes, particularly regarding pricing strategy. The move comes at a critical time, as the high cost of weight loss drugs such as Ozempic and Wigovy is increasing the financial burden on Medicare budgets and insurance companies. As demand for these treatments soars, insurance companies are struggling to absorb the high costs, which could ultimately lead to higher premiums for all policyholders.
“A major private health insurance company told me that if I chose to cover Wegoby and Ozempic for all of my eligible patients, I would have to double the premiums for all of my members,” Sanders wrote. Ta.
Jorgensen acknowledged that affordability is important for patients to benefit from life-changing medicines and revealed that his team plans to work towards the same goals as the HELP committee. .
“Unfortunately, the complexity of the system reduces access and affordability for many Americans,” he said in his testimony. “We look forward to working with this committee to address these systemic issues so that everyone who can benefit from our medicines has access to them.”
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