Novo Nordisk to Cut Prices on Popular Diabetes and Weight Loss Drugs
Novo Nordisk, the pharmaceutical giant, is set to significantly lower the list prices of its widely-used weight loss and diabetes medications, Wegovy and Ozempic, potentially by as much as 50%, reports suggest.
Starting in January, both Wegovy and Ozempic will be priced at $675 per month. This reduction means Wegovy’s price is cut in half, while Ozempic will see a 34% decrease. The Wall Street Journal shared this news on Tuesday.
The price adjustments will also apply to oral versions of these drugs, including one known as Libersus.
This move appears to be part of Novo Nordisk’s strategy to reclaim its leading position in the weight-loss sector from rivals like Eli Lilly, which produces Mounjaro and Zepbound.
Interestingly, this will be the first time the Denmark-based company has reduced the list price of its medicines, an unusual step for a major player in the pharmaceutical industry.
Recent data shows that millions of Americans are using these popular medications, with the number of users doubling in the past year and a half according to a Gallup poll from late last year.
Novo Nordisk believes the existing prices may have discouraged some potential customers, particularly those who have high deductible health plans. They aim to make these drugs more affordable for new patients.
Jamie Miller, the company’s executive vice president for U.S. operations, mentioned to the Journal, “We hope that lower prices will improve access and affordability.”
The firm has already been offering various discounts to both insurance providers and consumers, thanks in part to agreements made during the Trump administration to maintain lower prices.
Currently, the cash prices for these drugs can vary significantly, with some patients seeing prices between $149 to $499 per month based on the specific drug and dosage.
In comparison, Eli Lilly had previously reduced the price of Zepbound from over $1,000 to a range of $299 to $499.
This new price reduction will not impact Novo Nordisk’s discounted products listed on TrumpRx, a site designed to allow consumers to access drugs at reduced rates.
Additionally, the company has introduced the first oral version of the GLP-1 medication for weight management, and both companies are marketing these drugs directly to consumers via their websites.
The global market for GLP-1 drugs, useful for weight loss and diabetes management, is anticipated to grow from $72 billion to $139 billion by 2030, according to TD Cowen.
The demand for these appetite-suppressing medications is so high that they’re increasingly viewed as a challenge to industries like fast food and alcohol.
Furthermore, next January, Novo Nordisk plans to also offer the same lower prices within the Medicare system, with Ozempic and Wegovy being available for $274 for a 30-day supply.
