In this article, Novo Nordisk’s CEO, Lars Fruergaard Jørgensen, faced questioning from the Senate regarding the high prices of the company’s weight loss drug Wegovy and diabetes treatment Ozempic, which have seen increased demand in the U.S. Jørgensen did not promise to reduce prices during the Senate Health, Education, Labor and Pensions Committee hearing in Washington, D.C. Instead, he expressed a willingness to collaborate on policy solutions to address the underlying issues that contribute to high prescription drug costs.
Senator Bernie Sanders raised concerns about Novo Nordisk’s pricing practices, highlighting the stark price disparities between the U.S. and other countries for Ozempic and Wegovy. He emphasized the need for fair pricing for American consumers and criticized the company for charging significantly higher prices in the U.S. compared to other nations.
Sanders also mentioned that major generic pharmaceutical companies have indicated they could offer a version of Ozempic at a much lower cost than Novo Nordisk’s current price. The Senator received commitments from pharmacy benefit managers (PBMs) and health plans that lower list prices for Wegovy and Ozempic could improve access for patients.
Novo Nordisk defended its pricing by citing investments in research, development, and manufacturing of the treatments, emphasizing their positive impact on patients’ lives. Jørgensen acknowledged the challenges within the U.S. healthcare system that affect drug affordability and pledged to work with policymakers to address these issues.
The discussion also touched on the potential consequences of price reductions, with Jørgensen warning that lower prices could lead to reduced insurance coverage, citing a past example involving the company’s insulin product Levemir. Lawmakers and experts highlighted the financial strain that high drug prices could place on the healthcare system, urging for measures to control costs.
The hearing coincided with efforts by the Biden administration and lawmakers to address healthcare expenses by targeting the pharmaceutical industry and supply chain intermediaries. The ongoing debate over drug pricing underscores the need for comprehensive solutions to ensure affordable access to essential medications for all Americans.
