Novo Nordisk’s CEO, Lars Fruergaard Jorgensen, announced that the company’s popular diabetes medication, Ozempic, will be eligible for U.S. government price negotiations in under a year. This statement was made in his written testimony ahead of a Senate committee hearing focusing on drug pricing for both Ozempic and the weight-loss drug Wegovy.
Jorgensen’s remarks align with Wall Street analysts’ predictions that Ozempic will be included in the 2027 price negotiation list, which is expected to be revealed in February 2025. Another Novo executive recently indicated at an industry conference that the inclusion of Ozempic is highly probable.
Currently, Ozempic has a list price of $935.77 per month in the U.S., while Wegovy is priced at $1,349.02 per month, although most consumers pay lower amounts based on their insurance coverage.
The context for these developments lies in the Inflation Reduction Act of 2022, which allows Medicare to negotiate prices for certain high-cost prescription drugs, affecting millions of seniors and disabled Americans. Both Ozempic and Wegovy have come under scrutiny from lawmakers due to their steep prices.
In his testimony, Jorgensen noted that the net price of Ozempic has fallen by approximately 40% since its U.S. introduction, with similar trends observed for Wegovy. He indicated that, under the current market conditions, Novo anticipates that net prices for both medications will continue to decline.
hii Aditi Sahu this side..
As an author and writer specializing in investment and finance , I am dedicated to delivering insightful articles and news stories that inform and engage the investment community . My focus is on providing timely and relevant content that covers market trends , innovative strategies , and key financial development . My goal is to equip investors with the knowledge and insights needed to make informed decisions and succeed in a dynamic financial environment.
aparna