Novo Nordisk CEO Lars Jorgensen blames US health care for high Ozempic prices – Bernie Sanders warns of increased insurance

Novo Nordisk CEO Lars Fruergaard Jorgensen drew attention to the problems of the US health care system while justifying the company’s drug prices – prices that Senator Bernie Sanders called “unbelievably high.”

Sanders accused the company of potentially raising the cost of health care for all Americans.

Don’t miss it

• Car insurance premiums in America are through the roof – and getting worse. But 5 minutes can cost you as much as $29/month

• Commercial real estate has dominated the stock market for 25 years – but only the rich could buy. Here’s how even ordinary investors can own a Walmart, Whole Foods or Kroger.

• These five magic money steps will get you up America’s wealth ladder in 2024 — and you can complete each step in minutes. Here is the way

“The prices of these drugs are so high in the United States that everyone – regardless of whether they use the products or not – can be forced to bear the burden of Novo Nordisk’s strategy to increase profits through higher insurance payments and taxes,” Sanders wrote. in a public letter to Jorgensen.

In response, Jorgensen defended the company’s purchase in a Senate hearing before the Health, Education, Labor and Pensions (HELP) Committee, saying that the high costs of the US health care system to – have corporate greed. While admitting that Americans pay more than European and UK customers, Jorgensen emphasized that many patients are getting drugs at cheaper rates between $25 and $50 per month.

The controversy highlights the growing tension over the rising demand for GLP-1 drugs, which, although originally designed for type 2 diabetes, are widely popular because of their weight-loss effectiveness. of the body.

The pricing controversy surrounding Novo Nordisk

Senator Sanders has been talking about the big difference in the price of the products of the drug company based in Denmark, especially Ozempic and Wegovy, in different countries. Sanders pointed out that while Americans pay $969 for a month’s supply of Ozempic, the cost is much lower in other countries.

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

According to a Bloomberg News analysis of regulatory filings and analyst estimates, Novo Nordisk’s diabetes and obesity drugs have generated nearly $50 billion in sales since the second quarter of 2024 – and 72% of that money comes from US consumers, according to the statement. from Sanders to X.

The story continues

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

Read more: Newly wealthy Americans are ditching the strong stock market – here’s another asset they’re banking on.

Evidence

On September 24, 2024, Jorgensen was not shy about standing up to defend his company’s stock.

He emphasized that despite the high price, more than 80% of US patients with health insurance for Ozempic or Wegovy pay $25 or less per prescription. According to Jorgensen, this system helps to reduce the financial burden for many insurance patients, although there are still many concerns about the feasibility.

Jorgensen also noted that since Ozempic was introduced in 2018, costs have dropped by nearly 40% in the United States. representatives who manage prescription drug plans for insurers, and emphasized. that Ozempic is now the cheapest, once-weekly GLP-1 drug available on the US 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 regarding pricing policies. This comes at a critical time, as the high costs of weight loss drugs like Ozempic and Wegovy are putting increasing financial pressure on Medicare and insurance companies. As the demand for these treatments rises, insurers are struggling to absorb higher costs, which could eventually lead to higher premiums for all policyholders.

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

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

“Administrative problems unfortunately limit the access and capabilities of many Americans,” he said in his testimony. “We look forward to working with this Committee to resolve these administrative issues so that everyone who can benefit from our medicines can access them.”

What to read next

This article provides information only and should not be considered advice. Offered without warranty of any kind.