Sen. Bernie Sanders (I-VT) is taking aim at one of Big Pharma’s newest cash cows: the latest generation of effective anti-obesity drugs. On Wednesday, Sanders’ office announced that the senator launch an investigation into Novo Nordisk over the “astronomically high” list prices of their drugs Wegovy and Ozempic. Both medications can cost around $1,000 per month or more without insurance coverage.
Wegovy and Ozempic are made with the same active ingredient, semaglutide, a long-lasting mimic of the hormone GLP-1. Ozempic was approved in 2017 to treat type 2 diabetes, while Wegovy was approved in 2021 to treat obesity. Although Ozempic is not officially approved for the treatment of obesity, it is increasingly being prescribed off-label for it. In clinical trials, those who took Wegovy lost an average of 15% of their starting weight – far more than the typical success achieved with diet and exercise alone or with older medications.
The years since Wegovy’s approval have solidified its effectiveness as a treatment Weight loss and beyond. Clinical studies have shown that GLP-1 therapy can reduce the risk of obesity-related complications such as heart and kidney disease, and some studies suggest that it may even help reduce people’s unhealthy cravings for alcohol and others reduce drugs. In November 2023, Eli Lilly’s tirzepatide was approved for the treatment of obesity. This drug, whose effectiveness is enhanced by combining GLP-1 with another hormone, has significantly increased the potential of this drug Drug class as a whole.
As impressive as these drugs were, they aren’t cheap, at least in the US. Based on the list price, a supply of Ozempic can cost almost $1,000 per month, while Wegovy can cost over $1,300 per month. While some users are fortunate enough to pay much less, insurance coverage for these medications is patchy and often short-lived. High list prices also burden public payers such as Medicare, which can lead to drug rationing and restrictive patient eligibility criteria (Medicare is specifically barred from covering obesity medications in general, but such medications may be covered if they treat another approved condition, such as type 2 diabetes or heart disease). And in many other countries, the deductible costs are much lower.
It is this inequality that Sanders wants to address in his capacity as chairman of the Senate Health, Education, Labor and Pensions (HELP) Committee.
“Novo Nordisk scientists deserve great credit for developing these medicines, which have the potential to be a game-changer for millions of Americans struggling with type 2 diabetes and obesity. As important as these drugs are, they will be of no use to the millions of patients who cannot afford them,” Sander wrote in his letter Inform Novo Nordisk of the committee’s investigation.
Sanders’ office notes that Novo Nordisk generated over $12 billion in profits last year, a 76% increase from 2021, largely made possible by the arrival of Wegovy. And while drugmakers are certainly entitled to recoup the large sums of money they need to research and develop their products, Sanders argues that the company is price-gouging Americans in particular. Ozempic and Wegovy can cost around $100 to $150 in countries like Germany and the UK. A recent study by Yale researchers and others also estimated that a month’s supply of Ozempic could be produced for less than five dollars a month, even taking into account a certain profit margin.
The high prices, poor insurance coverage and regular shortages of the drugs have contributed to a growing black market for them. People can pay significantly less for compounded or counterfeit versions of semaglutide (about $200 to $300 per month), although with no guarantee of safety and effectiveness. And there is already reported that people get hurt as a result.
Given the increasing popularity of these drugs and the potential patient base (more than 40% of adult Americans are obese), Sanders is also concerned about how these high costs will affect the stability of local and state public payers such as Medicare. The “astronomically high” price from Ozempic and move forward.
“[I]If prices for these products are not significantly reduced, there is the potential to bankrupt Medicare, Medicaid, and our entire health care system. The United States Congress and the federal government cannot allow this,” Sanders wrote in his letter.
As part of the committee’s investigation, Novo Nordisk will, among other things, be asked to provide details of how the prices for both medicines were determined and a breakdown of the expenditure required to bring them to market.