High-Stakes Showdown: Novo Nordisk CEO Grilled Over Skyrocketing Drug Prices
In a tense Senate hearing, Novo Nordisk’s top executive, Lars Fruergaard Jørgensen, faced intense scrutiny over the exorbitant prices of the company’s weight loss drug Wegovy and diabetes treatment Ozempic. As demand for these injections surges in the US, lawmakers are demanding answers on why Americans are forced to pay significantly higher prices than patients in other countries.
Senator Bernie Sanders, who chairs the Senate Health, Education, Labor and Pensions Committee, accused Novo Nordisk of “ripping off” Americans, citing the company’s nearly $50 billion in sales from Wegovy and Ozempic, mostly generated in the US. He pointed out that while these drugs can cost as little as $100 per month in some European countries, they come with a hefty price tag of nearly $1,350 per month in the US before insurance.
Jørgensen did not commit to slashing prices but pledged to work with lawmakers on policy solutions to address the “structural issues” driving up prescription drug costs. He also agreed to meet with pharmacy benefit managers to explore ways to improve access and affordability for patients. However, he warned that lowering prices could lead to reduced insurance coverage, citing the example of Novo Nordisk’s insulin product Levemir, which was dropped by insurers after the company cut its list price.
The hearing comes as the US healthcare system faces a potential crisis, with the demand for weight loss and diabetes treatments threatening to bankrupt the system unless prices drop. Lawmakers, health experts, and insurers are sounding the alarm, warning that the unchecked demand for these drugs could cost the US $411 billion per year if half of all Americans took them.
As the Biden administration and lawmakers on both sides of the aisle push to rein in healthcare costs, the pharmaceutical industry and drug supply chain middlemen are under intense pressure. The Senate Health Committee has vowed to continue its investigation into Novo Nordisk’s pricing practices, and the company’s drugs may soon be subject to price negotiations with Medicare under the Inflation Reduction Act.
Leave a Reply