Novo Nordisk CEO Lars Jorgensen blames ‘complex US healthcare system’ for steep Ozempic prices — which Senator Bernie Sanders says may lead to higher insurance premiums for all Americans

The pricing controversy surrounding Novo Nordisk

Senator Sanders has been vocal about the significant price disparities in the Denmark-based drug company’s products, particularly Ozempic and Wegovy, across different countries. Sanders highlighted that while Americans pay $969 for a month's supply of Ozempic, the cost is drastically lower in other countries.

For example, in Canada the same supply costs $155 and just $59 in Germany. Similarly, Wegovy costs $1,349 per month for Americans, compared to $140 in Germany and $92 in the U.K.

According to a Bloomberg News analysis of regulatory filings and analyst estimates, Novo Nordisk’s diabetes and obesity medications have already generated nearly $50 billion in sales as of the second quarter of 2024 — and 72% of that revenue came from U.S. consumers, according to a statement from Sanders on X.

Bloomberg says sales are projected to reach $65 billion by the end of the year.

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The testimony

On September 24th, 2024, Jorgensen wasn't shy about stepping up to defend his company’s prices.

He emphasized that despite the high price point, more than 80% of U.S. patients with health insurance coverage for Ozempic or Wegovy pay $25 or less per prescription. According to Jorgensen, the system helps reduce the financial burden for many insured patients, even as broader concerns about affordability remain.

Jorgensen also noted that since Ozempic was first introduced in 2018, the net price has dropped about 40% in the U.S. He largely attributes the inflated costs to pharmacy benefit managers (PBMs), which are the intermediaries managing prescription drug plans for insurers, and highlighted that Ozempic is now the lowest-cost, once-weekly GLP-1 medicine available on the U.S. market.

Looking ahead

Senator Sanders, as part of the HELP Committee, continues to push Novo Nordisk for greater transparency regarding its internal decision-making processes, particularly around pricing strategies. This push comes at a critical time, as the high cost of weight loss drugs like Ozempic and Wegovy are putting increasing financial strain on Medicare budgets and insurance companies. With demand for these treatments soaring, insurers are struggling to absorb the high costs, which could ultimately lead to a premium hike for all policy holders.

“A major private health insurance company has told me that they would have to double the premiums for every single subscriber if they chose to cover Wegovy and Ozempic for all eligible patients,” Sanders wrote.

Jorgensen has made it clear that his team plans to work toward the same goal with the HELP Committee, acknowledging that affordability is crucial for patients to benefit from life-changing medications.

“The complexities of the system unfortunately reduce access and affordability for many Americans,” he said in his testimony. “We are eager to work with this Committee to address these systemic issues so that everyone who can benefit from our medicines is able to get them.”