Topline
Popular diabetes treatment Ozempic could soon have its price cut following cost negotiations with the Centers for Medicare & Medicaid Services, according to Bloomberg, as the Novo Nordisk drug currently has a costly list price in the U.S. that has become the subject of a Senate investigation.
Ozmepic has been approved for adults with type 2 diabetes. (Photo by Steve Christo - Corbis/Corbis ... [+]
Key Facts
Ulrich Otte, Novo Nordisk’s senior vice president of finance & operations, said at the Cantor Global Healthcare Conference on Tuesday that it is “very likely” Ozempic will be part of cost negotiations organized by the US Centers for Medicare and Medicaid Services, adding Novo Nordisk “is ready for that,” Bloomberg reported.
The Centers for Medicare & Medicaid Services can directly negotiate with pharmaceutical companies over drug prices through President Joe Biden’s Inflation Reduction Act, and will announce its next group of drugs designated for price negotiations by Feb. 1, 2025, according to health policy organization KFF.
The negotiation process for the set of 15 drugs will start on Feb. 28 and end Nov. 1 next year before negotiated prices are made available at the start of 2027, according to KFF.
Ozempic’s list price is $968.52 per month but can cost as little as $25 for up to 24 refills with insurance plans, according to Novo Nordisk, though most health insurance plans do not cover the drug for weight loss, as it has only been approved by the Food and Drug Administration for type 2 diabetes.
The drug’s price is the subject of a Senate committee investigation launched by Sen. Bernie Sanders, I-V.T., who is pushing for a price slash on the drug and claimed it has a lesser price in other countries like Canada ($155 a month).
Novo Nordisk spokesperson Jamie Bennett told Forbes the company “can’t speculate on which Novo Nordisk medicines will be selected for future negotiations with CMS,” noting Novo Nordisk has opposed government price setting through the Inflation Reduction Act and has “serious concerns about how the law is being implemented.”
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Tangent
Novo Nordisk shares closed down 3.3% at $132.32 Tuesday. The pharmaceutical company’s stock is up more than 27.8% on the year after trading at $102.11 per share in January.
Crucial Quote
“They have studied the math, and they tell me that they can sell a generic version of Ozempic, the exact same drug that Novo Nordisk is manufacturing, to Americans for less than $100 a month," Sanders said during an expert roundtable event in Washington D.C. on Tuesday, referring to conversations he has had with CEOs of large generic pharmaceutical companies, according to NBC News.
What To Watch For
A hearing on Novo Nordisk’s pricing of Ozempic will be held next Tuesday by the Senate Committee on Health, Education, Labor and Pensions. Novo Nordisk CEO Lars Jørgensen will testify.
Key Background
Ozempic has become a wildly popular diabetes and obesity treatment for Novo Nordisk, which generated nearly $14 billion in sales through the drug last year, which accounted for 41% of its total sales, The Washington Post reported. Ozempic is not explicitly a weight loss drug, though the treatment has gained social media attention for its ability to potentially help users lose weight. The once-weekly injection can be prescribed off-label for weight management even though it has not been FDA-approved for weight loss, though such prescriptions are unlikely to be covered by insurance.
Further Reading
How Ozempic, Wegovy, Mounjaro, Zepbound May Help Treat Other Diseases: Here’s What To Know (Forbes)
Ozempic For Weight Loss: Is It Safe? What Experts Say (Forbes)
