Mon Sep 23 22:16:27 UTC 2024: ## Novo Nordisk’s Ozempic to Face US Price Negotiations in 2027
**Washington, D.C. -** Novo Nordisk, the Danish pharmaceutical giant behind the blockbuster diabetes drug Ozempic, has confirmed that its medication will be subject to US government price negotiations in 2027. This follows the implementation of the Inflation Reduction Act of 2022, which empowers Medicare to negotiate prices for certain high-cost prescription drugs.
Novo Nordisk CEO Lars Fruergaard Jorgensen, who is set to testify before a Senate committee on Tuesday, stated in his written testimony that Ozempic meets the current criteria for price negotiation, a conclusion already anticipated by Wall Street analysts.
Ozempic, which has gained widespread popularity for its effectiveness in treating type 2 diabetes, currently has a list price of $935.77 per month in the US, while its weight-loss counterpart, Wegovy, costs $1,349.02 per month. However, most patients pay significantly less due to their insurance coverage.
Jorgensen acknowledged the criticism directed at Novo Nordisk regarding the high prices of its drugs. He highlighted that the net price, the actual amount Novo receives for the medication, has decreased by around 40% for both Ozempic and Wegovy since their respective launches. The CEO further stated that the company expects net prices to continue decreasing under current market conditions.
The announcement comes as the US government prepares to release the first list of drugs eligible for price negotiations in February 2025. While the final list remains uncertain, it is highly likely that Ozempic will be included, potentially resulting in lower costs for patients and Medicare.
First Piper 