Novo Nordisk Probed by Senate Committee on Weight-Loss Drug Prices

By Ben Glickman

Novo Nordisk is being investigated by a U.S. Senate committee for the prices of its blockbuster weight-loss drugs Ozempic and Wegovy.

Sen. Bernie Sanders (I., Vt.), chair of the Senate Committee on Health, Education, Labor and Pensions, wrote a letter to the company Wednesday calling for reduced prices for Ozempic and Wegovy, arguing that they had the potential to bankrupt the U.S. healthcare system and were unaffordable for many patients.

In the letter, addressed to Chief Executive Lars Fruergaard Jørgensen, Sanders says Novo Nordisk charges $969 in the U.S. for one month of Ozempic, but $155 in Canada and $59 in Germany. He pointed out a similar discrepancy with the prices of Wegovy in the U.S. and other countries.

"The result of these astronomically high prices is that Ozempic and Wegovy are out of reach for millions of Americans who need them," Sanders wrote.

He argued in the letter that insurance companies covering the drugs would have to raise premiums for all customers. The drug is currently not covered by Medicaid programs in 35 states, he said, and others severely restrict coverage.

Sanders also criticized the company for charging two different prices for Ozempic and Wegovy, despite them being the same generic drug, called semaglutide. Ozempic has been approved for treating type 2 diabetes for years, while Wegovy was approved in 2021 for weight loss.

Novo Nordisk said in a statement it agreed that it was important to give patients access to Ozempic and Wegovy.

"It's easy to oversimplify the science that goes into understanding disease and developing and producing new treatments, as well as the intricacies of U.S. and global healthcare systems," the company said in a statement. "Novo Nordisk remains committed to working with policymakers to advance solutions to support access and affordability for all patients, and we reiterated this commitment in our conversation with Chairman Sanders."

Sanders requested Novo Nordisk turn over detailed information on pricing, sales and insurance coverage for the drugs, as well as communications related to pricing and the product.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

April 24, 2024 14:02 ET (18:02 GMT)

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