Employers and employees spent more than $400 billion on obesity care in 2023; Novo Nordisk's CEO said weight loss drug Wegovy can reduce these costs — an inverse of critics' expectations.
For months, U.S. lawmakers have slammed Novo Nordisk's monthly list prices of Ozempic ($969) and Wegovy ($1,349) because the drugs can be 10 to 15 times cheaper in other countries. The Denmark-based company has previously said the reason for these price disparities is because of America's complex pharmaceutical industry.
"Unfortunately, even when we lower our prices, patients in the United States often don't receive the savings — this is a problem," a spokesperson told Becker's in July. The company has said it receives about 60% of U.S. list prices after pharmacy benefit managers take rebates and fees.
CEO Lars Fruergaard Jørgensen told NBC Nightly News the two medications are reducing overall healthcare costs. As the drugs help people lose weight, employers and employees might see reduced medical costs, disability payments, workers' compensation and absenteeism.
"We are actually providing products that's actually helping take that cost burden off," Mr. Jørgensen told the news outlet, adding that more than 80% of insured Americans pay $25 or less for a month's supply.
Business Group on Health recently surveyed 125 companies that cover 17.1 million workers across multiple industries about projected healthcare costs for 2025. About 79% of employers said they have seen increased interest in obesity medications and 96% said they are concerned about the long-term cost implications.
The companies expect an 8% increase in employers' healthcare costs, partly because of GLP-1 medications. Multiple organizations have already trimmed GLP-1 coverage for their employees because of rising costs.
Mr. Jørgensen is slated to testify at a Health, Education, Labor and Pensions Committee hearing on Sept. 24 about Ozempic and Wegovy's prices.