Novo Nordisk CEO Lars Fruergaard Jorgensen recently addressed the Senate Health, Education, Labor, and Pensions Committee in Washington, D.C., to discuss the high costs associated with the weight-loss drug Wegovy and the diabetes medication Ozempic.
In his testimony, Jorgensen attributed the elevated prices to pharmacy benefit managers (PBMs), who negotiate the terms for access to prescription medications. He expressed the company's willingness to engage in discussions with PBMs to negotiate drug rebates with manufacturers on behalf of insurers.
"Anything that can help patients get access, I am supportive of. And that includes collaborating and negotiating with anyone who can help," Jorgensen stated.
Senator Bernie Sanders, who leads the Senate panel, questioned Jorgensen on why these drugs are significantly more expensive in the U.S. compared to other countries. Sanders highlighted that the company has made nearly $50 billion in sales from Wegovy and Ozempic, predominantly from the U.S. market.
Sanders noted that Ozempic costs around $969 per month in the U.S., versus $155 in Canada, $122 in Denmark, and $59 in Germany. Similarly, Wegovy is priced at $1,349 per month in the U.S., while it costs $186 in Denmark, $140 in Germany, and $92 in the United Kingdom.
"Treat the American people the same way that you treat people all over the world," Sanders demanded. "Stop ripping us off."
The CEO responded by stating that Americans with insurance pay well below the list price. He explained that Ozempic for diabetes is covered by 99 percent of commercial plans, and Wegovy is covered by half of all commercial plans, with most insured patients paying $25 or less for a 28-day supply.
Some lawmakers defended Novo Nordisk's pricing strategy.
"Novo Nordisk is not the villain in this story. They're a hero," Senator Roger Marshall said. "Sometimes we live in a fantasy land. We want you to invest massive amounts of money, but then we want you to keep the prices low."
