On Sept. 24, Novo Nordisk CEO Lars Fruergaard Jørgensen testified at a Senate committee hearing about the costs for Wegovy and Ozempic.
The hearing comes after months of disagreements between Denmark-based Novo Nordisk and the Senate Committee on Health, Education, Labor and Pensions. The former says the United States' complex pharmaceutical industry — including pharmacy benefit managers — is causing high prices, while the latter says the drugmaker is acting on "corporate greed."
During the hearing, Mr. Sanders said three major PBMs would increase Ozempic coverage if Novo Nordisk lowered the drug's list price.
Wegovy is a weight loss medicine with a monthly list price of $1,349, and Ozempic is a Type 2 diabetes drug with a monthly list price of $969. Sen. Bernie Sanders said major generic drugmakers told him their companies could sell the two blockbuster drugs for less than $100.
Novo Nordisk has previously told Becker's the net price of Ozempic has fallen 40% since launching in the U.S., more than 99% of commercial plans cover Ozempic, and 80% of insured Americans pay $25 or less each month.
Here are four other updates on Ozempic, Wegovy and other GLP-1 medications:
1. Projections
The GLP-1 market is expected to be worth $200 billion by 2031. In a race to enter the lucrative market, pharmaceutical companies could launch up to 16 new weight loss drugs between 2026 and 2029, according to investment research company Morningstar.
Novo Nordisk, the maker of Ozempic and Wegovy, is already facing direct competition from Teva Pharmaceuticals and Sandoz. In June, Teva announced the launch of liraglutide, the first approved generic version of Novo Nordisk's Victoza, a GLP-1 diabetes drug. And in September, Sandoz said it will sell semaglutide (Ozempic, Rybelsus and Wegovy) in 2030.
2. Daily pills
In a phase 1 trial, a Novo Nordisk experimental GLP-1 weight loss drug led to a 13.1% average reduction in body weight after 12 weeks. The drug candidate, amycretin, is designed as a daily pill — a divergence from all FDA approved GLP-1 medications, which are weekly injections.
Although amycretin and similar drugs are in early research stages, experts think oral presentations can assuage shortages and offer patients cheaper, more accessible options.
3. Research findings
In one study, researchers found that patients who took Ozempic or Wegovy died less often from COVID-19 compared to those who took a placebo. Another trial noted better weight loss results from Ozempic and Wegovy compared to Victoza and Saxenda, a weight loss drug.
If GLP-1 labels expanded to include mild or moderate cardiovascular disease, which includes 44 million Americans, Dandelion Health predicted the drugs could prevent 17,300 heart attacks and 16,700 strokes each year.
4. The cost debate
There are a few ways Ozempic's list price might decrease. CMS could select the drug as one of the 15 up for negotiations beginning in 2025, more GLP-1 rivals could influence a price drop, or public pressure from U.S. lawmakers could alter the price.
During the Sept. 24 hearing, Mr. Sanders asked Mr. Jørgensen if he would "substantially lower" GLP-1 prices in the U.S. Mr. Jørgensen hinted at a possibility in his response, saying, "if it works in a way where patients get access to a more affordable medicine."