On September 23, 2024, Novo Nordisk's CEO Lars Fruergaard Jorgensen announced that the company's diabetes medication, Ozempic, will be eligible for price negotiations under U.S. government regulations within a year. This statement was made in anticipation of a Senate committee hearing focused on the pricing of Ozempic and its weight-loss counterpart, Wegovy.
Analysts have indicated that Ozempic is likely to be included in the 2027 list of drugs subject to price negotiations, which will be revealed in February 2025. Currently, the list price for a month's supply of Ozempic is approximately $935.77, while Wegovy is priced at around $1,349.02, although many consumers pay less due to insurance coverage.
The Inflation Reduction Act of 2022 enables Medicare to negotiate prices for high-cost prescription drugs, impacting millions of Americans, particularly those aged 65 and older, as well as the disabled. Jorgensen noted that the net price of Ozempic has decreased by about 40% since its U.S. launch, with similar trends observed for Wegovy. He anticipates that prices for both drugs will continue to decline under current market conditions.
Reporting by Bhanvi Satija in Bengaluru; Editing by Shounak Dasgupta