The trade agreement between the US and the European Union is set to introduce a 15% tax on nearly all imports from Europe, impacting products from French wines to German automobiles and sought-after pharmaceuticals.
Notably affected brands include the injectable medications Ozempic and Wegovy, which have gained popularity for their effectiveness in treating diabetes and aiding weight loss. Both are produced by the Danish pharmaceutical company Novo Nordisk.
These European drugs have a strong presence in the US market; Wegovy, which is an FDA-approved treatment for obesity, sees about 200,000 prescriptions filled weekly, according to Novo Nordisk.
Before the tariffs were even considered, many individuals already found these medications to be quite expensive. Without insurance, a month’s supply costs around $500.
However, for those with a medical plan, it’s generally much more affordable. Novo reports that around 85% of insured patients in the US pay less than $25 per month for their prescriptions.
Once the tariffs take effect, the cost of importing these drugs into the US will likely increase, but it remains unclear who will ultimately bear this cost. Lena Conti, an Associate Professor at Boston University’s Questrom Business School, mentioned to NBC News that pharmaceutical companies might adjust their pricing to account for the higher import costs. Individuals without insurance might see more noticeable price increases, while insured patients could end up paying higher premiums as a result.
“The overall implication is that drug prices for imported medications are likely to rise for all Americans,” stated Joe Brusuelas, a principal and chief economist at RSM US.
Other popular medications, including Botox, Viagra, and cancer drugs like Keytruda, are also made in Europe and will be affected by these tariffs. While some generic drugs were initially expected to be excluded from the agreement, details were still being worked out as of Thursday.
A spokesperson from Novo Nordisk commented on how the new 15% tariffs might impact Ozempic and Wegovy, stating, “We’re focused on improving patient access and affordability, and we’ll continue to seek solutions that will help individuals obtain the medications they require.”
