In a recent development, Sen. Bernie Sanders demanded that Danish drug company Novo Nordisk lower the list price of its popular weight loss drugs, Ozempic and Wegovy, to no more than what they charge for the drugs in Canada. The senator warned that the high prices of these drugs could potentially bankrupt Medicare, the American people, and the entire healthcare system. Sanders, who chairs the Senate committee on Health, Education, Labor, and Pensions, made this demand following a study by researchers at Yale that highlighted the high costs of the drugs in the U.S.
The cost of Ozempic in Canada is around $300 per month, significantly lower than the $1,000 price tag in the U.S. Sanders argued that while Ozempic could be a game-changer in tackling the diabetes and obesity epidemics in America, it remains unaffordable to millions who need it at the current prices. The surge in demand for the drug has led to increased spending under Medicare Part D, with total spending on Ozempic and similar weight loss drugs reaching $5.7 billion in 2022, up from $57 million in 2018, according to a study by KFF.
Sanders has been a vocal advocate for lowering drug prices and has previously grilled executives from major pharmaceutical companies about their pricing strategies. The senator’s call for Novo Nordisk to reduce the list price of Ozempic and Wegovy comes as a response to the escalating costs and potential financial strain on the healthcare system. The company has not disclosed its manufacturing costs but stated that it invested billions in research and development, as well as a new deal to boost the drug’s supply.
Economists from MIT estimated that making Ozempic and similar weight loss drugs available to all obese Americans could cost up to $1 trillion annually, far exceeding the potential savings from reduced healthcare costs associated with excess weight. The Biden Administration is expected to negotiate lower prices with Novo Nordisk for Medicare, given the rapid increase in spending on these drugs in recent years. Medicare Part D has seen a significant rise in spending on Ozempic, reaching $4.6 billion in 2022, reflecting the growing demand for the drug and its popularity among patients and doctors.
Overall, the high prices of Ozempic and Wegovy have raised concerns about their affordability and sustainability within the healthcare system. Sanders’ demand for Novo Nordisk to lower the list price of these drugs is part of a broader effort to address the rising costs of prescription medications and ensure access for those in need. The outcome of this call to action could have significant implications for patients, healthcare providers, and policymakers as they navigate the complexities of drug pricing and affordability in the healthcare landscape. It remains to be seen how Novo Nordisk will respond to these demands and the potential impact on the broader healthcare system.