Sen. Sanders launches probe of 'outrageous' prices of Novo Nordisk's Wegovy, Ozempic
Sen. Bernie Sanders, chair of the Senate Health, Education, Labor and Pensions Committee, has demanded to know why Americans pay “$1,349 a month for [weight loss] prescription drugs that cost less than $5 to manufacture.”
Although new weight-loss drugs such as Wegovy and Ozempic are effective, they also are prohibitively expensive. Sen. Bernie Sanders, I-Vt., wants to know why. He demanded answers in a recent letter to the CEO of Novo Nordisk, which manufactures the two drugs.
“The scientists at Novo Nordisk deserve great credit for developing these drugs that have the potential to be a gamechanger for millions of Americans struggling with type 2 diabetes and obesity,” wrote Sanders, chair of the Senate Health, Education, Labor and Pensions Committee. “As important as these drugs are, they will not do any good for the millions of patients who cannot afford them. Further, if the prices for these products are not substantially reduced, they have the potential to bankrupt Medicare, Medicaid and our entire health-care system. The United States Congress and the federal government cannot allow that to happen.”
Novo Nordisk charges Americans with type 2 diabetes $969 a month for Ozempic, while the same drug can be purchased for $155 in Canada and $59 in Germany. The company charges Americans with obesity $1,349 a month for Wegovy, which can be purchased for $140 in Germany and $92 in the United Kingdom. A recent report from researchers at Yale University that found both drugs can be profitably manufactured for less than $5 a month.
“In my view, the American people should not have to pay up to $1,349 a month for prescription drugs that cost less than $5 to manufacture and can be purchased at a fraction of this price in other developed countries,” the letter said. “The result of these astronomically high prices is that Ozempic and Wegovy are out of reach for millions of Americans who need them.
“Unfortunately, Novo Nordisk’s pricing has turned drugs that could improve people’s lives into luxury goods, all while Novo Nordisk made over $12 billion in profits last year — up 76 percent from 2021. That is unacceptable.”
Related: Sen. Sanders calls on Novo Nordisk to reduce ‘outrageous’ cost of Ozempic
Researchers at Vanderbilt University and the University of Chicago estimated it would cost Medicare more than $150 billion a year to cover Wegovy and other similar weight loss drugs. By comparison, the cost of all retail prescription drugs covered by Medicare in 2022 was less than $130 billion. More than 35 state Medicaid programs do not cover Wegovy, and dozens of states have severely restricted Ozempic coverage because of the high price.
Sanders’ letter requested information about the company’s internal decision-making, including how much the company makes from selling the product to commercial insurers and government programs. Finally, the letter requested that the company provide information about how prices are determined and the company’s expenditures on research and development for these drugs.
“Will Novo Nordisk substantially reduce both the list price and the net price of both Ozempic and Wegovy?” he asked.