Sen. Bernie Sanders (I-Vt.), who leads the Senate Health, Education, Labor, and Pensions (HELP) Committee, has initiated an investigation into the excessively high costs of Novo Nordisk's diabetes and weight loss drugs, Ozempic and Wegovy.
On Wednesday, Sanders penned sent a letter to Novo Nordisk’s CEO, Lars Fruergaard Jørgensen, informing him about the investigation and outlining his concerns about the varying prices of the drugs and raising issues about their pricing.
“The scientists at Novo Nordisk deserve great credit for developing these drugs that have the potential to be a game changer for millions of Americans struggling with type 2 diabetes and obesity,” Sanders said.
“As important as these drugs are,” Sanders continued, “they will not do any good for the millions of patients who cannot afford them.”
Ozempic and Wegovy contain the same active ingredient – semaglutide – but they come in different doses and strengths. Ozempic is FDA-approved for type 2 diabetes while Wegovy is approved for weight loss.
In his letter, Sanders asked why the two medications are priced differently from each other and from other countries.
In the U.S., Ozempic costs $969 a month for type 2 diabetes, while it costs $155 in Canada and $59 in Germany, according to Sanders. Wegovy is priced at $1,349 a month for weight loss in the U.S., compared to $140 in Germany and $92 in the United Kingdom.
Sanders referred to a recent report from Yale University that suggested the drugs could be produced profitably for less than $5 a month.
“The result of these astronomically high prices is that Ozempic and Wegovy are out of reach for millions of Americans who need them,” Sanders said. “Unfortunately, Novo Nordisk’s pricing has turned drugs that could improve people’s lives into luxury goods, all while Novo Nordisk made over $12 billion in profits last year — up 76 percent from 2021. That is unacceptable.”
Sanders cautioned that the high prices could financially strain vital programs like Medicare and Medicaid, “if the prices for these products are not substantially reduced,” and added, “The United States Congress and the federal government cannot allow that to happen.”
In a statement, a spokesperson for Novo Nordisk said the company is “proud of the work our scientists have done to advance innovation and improve the lives of people with chronic diseases,” and said it was “humbling” to see the medications helping people.
“We agree with the Chairman that access to these important treatments is essential for patients in Medicare, Medicaid and the commercial markets.
“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. However, the public debate doesn’t always take into account this extremely complex reality. 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,” the statement read.
Sanders inquired if the CEO would greatly lower both the list price and the net price of Ozempic and Wegovy. Sanders also asked for details by May 8 on the internal decision making, the company's profits, and how those prices are set.
