As the demand for GLP-1 drugs grows, there are several factors emerging that could result in its price decreasing.
Here are five reasons Ozempic prices could drop:
- Ozempic, manufactured by Novo Nordisk, could be part of upcoming drug price negotiations with CMS. If it is included, it might face price reductions as the government pushes for lower costs on high-demand medications such as GLP-1 drugs. Before insurance, the brand-name version of the drug costs $969 per month in the U.S.
- Competitors such as Eli Lilly have already started offering discounts on their GLP-1 drugs to expand their market share, Becker's reported Sept. 20.
- During a meeting hosted by Sen. Bernie Sanders, he stated that CEOs of major drugmakers informed him their companies can sell Ozempic for less than 10% of its current price. Mr. Sanders, who has advocated for more affordable medication, argued that a generic version of Ozempic could reduce costs by up to 90%. Sanders is also set to lead a U.S Senate Committee on Health, Education, Labor and Pensions hearing on Ozempic and Wegovy prices with Novo Nordisk's CEO Sept. 24.
- The GLP-1 market is also rapidly expanding, with more than 16 new weight loss drugs expected to hit the market by 2029. Financial analysts expect GLP-1 price declines to accelerate more than 10% annually by 2027, according to a report from Morningstar and its subsidary Pitchbook that Becker's covered earlier this month. As pharmaceutical companies begin introducing more GLP-1 drugs, the competition may bring prices down.
- Companies such as Eli Lilly are developing oral versions of GLP-1 drugs. These versions could be more convenient for patients and, as a result, place more pressure on Novo Nordisk to reduce the price of Ozempic.