Novo Nordisk CEO Faces Senate Scrutiny Over High Prices of Ozempic and Wegovy

High Drug Prices:
Novo Nordisk's CEO, Lars Fruergaard Jørgensen, was questioned by the Senate Health, Education, Labor and Pensions committee over the high prices of Ozempic and Wegovy in the United States compared to other countries.

Price Disparities:
Ozempic costs $969 a month in the U.S., compared to $155 in Canada, $122 in Denmark, and $59 in Germany. Wegovy costs $1,349 a month in the U.S., compared to $186 in Denmark, $140 in Germany, and $92 in the United Kingdom.

Profitability:
Despite the high prices, Jørgensen confirmed that Novo Nordisk is still profitable at the lower prices charged in other countries, such as Australia's $87 price point.

PBMs and Insurance:
The hearing also highlighted the role of pharmacy benefit managers (PBMs) and insurance companies in drug pricing. Jørgensen noted that rebates to PBMs are a significant component of drug prices, but Sanders pointed out that even with rebates, the net prices remain high.

Commitments from PBMs:
Sanders announced that major PBMs have committed to not limiting coverage if Novo Nordisk reduces the list prices of Ozempic and Wegovy.

Research and Development Costs:
Jørgensen defended the company's pricing by citing the costs of research and development, but a Yale University study suggested that these drugs could be made for less than $5 a month.

Insurance Coverage:
The hearing noted that many Americans, even those with insurance, struggle to afford these drugs due to insufficient coverage and high out-of-pocket costs.