Novo Nordisk CEO to testify at Senate over weight loss drug prices

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Novo Nordisk CEO to testify at Senate over weight loss ***** prices

Lars Fruergaard Jørgensen, CEO of Novo Nordisk, speaks during an interview in New York on Aug. 10, 2022.

Christopher Goodney | Bloomberg | Getty Images

Novo Nordisk’s top executive is slated to face a

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on Tuesday over the high prices of the company’s weight loss ***** Wegovy and diabetes treatment Ozempic, as demand for both injections soars in the U.S. 

Novo Nordisk CEO Lars Fruergaard Jørgensen will testify at a Senate Health, Education, Labor and Pensions Committee

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at 10 a.m. ET on Tuesday in Washington, D.C. It comes roughly five months after Sen. Bernie Sanders, the Vermont independent who chairs the Senate panel, opened an investigation into the Danish drugmaker’s pricing practices. 

Sanders contends that Novo Nordisk charges Americans substantially higher prices for its blockbuster drugs than it does for patients in other countries. Before insurance, Ozempic costs nearly

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and Wegovy costs almost

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in the U.S. 

Meanwhile, both treatments can cost as little as under $100 for a month’s supply in some ********* countries, according to a release from the

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. Ozempic costs just $59 in Germany, while Wegovy costs $92 in the U.K.

Sanders also said last week that the CEOs of major generic pharmaceutical companies have told him that they could sell a version of Ozempic for

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at a profit. There are currently no generic alternatives to Ozempic available in the U.S. 

Weight loss syringes of the brands “Wegovy”, “Ozempic” and “Mounjaro” are sold at In der Achat Apotheke in Mitte, Germany.

Picture Alliance | Picture Alliance | Getty Images

Sanders and other lawmakers,

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and insurers have warned that the insatiable demand for Novo Nordisk’s drugs and similar weight loss and diabetes treatments from rival Eli Lilly could

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unless prices drop.

Both drugmakers make GLP-1s, which mimic hormones produced in the gut to tamp down a person’s appetite and regulate their blood sugar. Eli Lilly’s weight loss injection Zepbound and diabetes ***** Mounjaro similarly cost around $1,000 per month before insurance and other rebates.

In a release, the Senate Health Committee said it would cost the U.S. $411 billion per year if half of all Americans took weight loss drugs from Novo Nordisk and Eli Lilly. That’s $5 billion more than what Americans spent on all prescription drugs in 2022. 

Medicare spent

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in 2022 alone, according to health policy research organization KFF. 

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Other insurers and employers have implemented strict requirements to control weight loss ***** costs, or have dropped coverage of those treatments altogether. Many health plans cover GLP-1s for diabetes, but not for weight loss. The federal Medicare program doesn’t pay for weight loss treatments unless they are approved and prescribed for another health condition. 

The hearing comes as the Biden administration and lawmakers on both sides of the aisle try to rein in health-care costs in the U.S., in part by pressuring the pharmaceutical industry and ***** supply chain middlemen. On average, Americans pay two to three times more than patients in other developed nations for prescription drugs, according to a

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from the White House.

Notably, Ozempic will likely be subject to the next round of price negotiations between manufacturers and Medicare — a key provision of President Joe Biden’s Inflation Reduction Act that aims to lower costs for seniors. Wall Street analysts say Ozempic will likely be eligible for negotiations by the time the next round of drugs is selected in 2025, for price changes that will go into effect in 2027.

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