Novo says Ozempic will be eligible for US price negotiations in less than a year By Reuters

(Reuters) – Novo Nordisk’s (NYSE: ) blockbuster diabetes drug Ozempic will be eligible for U.S. government price negotiations in less than a year based on current criteria, the maker’s CEO said on Monday of Danish medicines, Lars Fruergaard Jorgensen, in his written testimony.

Jorgensen is due to testify before a Senate committee on Tuesday in a hearing focused on US prices for his popular drug Ozempic and weight loss drug Wegovy.

WHY IT’S IMPORTANT

The comments confirm what Wall Street analysts are saying: that the 2027 price negotiation list will include Novo’s Ozempic. Last week, another Novo executive told an industry conference that Ozempic will “very likely” be on the list in 2027. The list will be announced in February 2025.

BY NUMBERS

Ozempic for one month has a US list price of $935.77, while Wegovy is $1,349.02 per month, according to the drugmaker’s website, although most consumers pay less based on their insurance plans.

CONTEXT

The Inflation Relief Act of 2022 allows Medicare to negotiate prices for prescription drugs that have been particularly expensive for the federal health program, which covers millions of Americans age 65 and older, as well as people with disabilities.

Novo’s Ozempic and weight-loss drug Wegovy, both wildly popular drugs, have faced criticism from lawmakers for high prices in the United States.

Jorgensen said in written testimony that Ozempic’s net price — the amount Novo is actually paid for the drug — has fallen about 40 percent since its introduction in the United States, and Wegovy’s net price has similarly fallen since its launch. saddle. less than three years ago.

He added that under current market conditions, Novo expects net prices to continue to decline for both Ozempic and Wegovy.