Sanders Takes a Stand

Senator Bernie Sanders (I-Vt.) has voiced his strong opposition to the exorbitant prices of the diabetes drug Ozempic manufactured by Novo Nordisk (NYSE:NVO). He is contemplating holding hearings on the matter and is eager to hold discussions with the company’s CEO regarding a potential reduction in the drug’s price.

Concerns Over High Costs

Sanders, the chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has raised alarms about the steep cost of Ozempic. The drug’s controversial use for weight loss by appetite suppression has drawn his attention.

A Meeting in the Works

Sanders intends to engage in dialogue with the CEO of the ‘Miracle’ weight loss drug maker, Lars Fruergaard Jørgensen, to explore ways to lower the list prices of Ozempic.

Manufacturing Discrepancy

His decision stems from a recent study published in the JAMA Network, which indicated that the production cost of Ozempic is substantially lower than its current market price. Sanders emphasized the significant disparity, with the drug costing less than $5 a month to manufacture but being retailed for nearly $1,000 a month in the United States.

Debating Pricing

In response, Novo Nordisk defended its pricing structure, noting that most U.S. patients covered by commercial health plans pay $25 or less a month for their Ozempic prescriptions. The company underscored its $5 billion global investment in research and development in 2023.

Broader Implications

The high pricing of Ozempic not only renders it unaffordable for many individuals who require it but also poses a potential threat to Medicare and the overall U.S. healthcare system, cautioned Sanders.

Market Reaction

The cost of Ozempic has been a long-standing concern, with recent data revealing stark global pricing discrepancies. Novo Nordisk’s pricing strategy has triggered discussions on the drug’s economic ramifications, with suggestions that utilizing Ozempic could yield substantial cost savings.

Novo Nordisk’s stock closed 0.35% higher at $128.40 on Friday, as reported by Benzinga Pro.