(Source – ft.com)
During a Senate hearing on Tuesday, Senator Bernie Sanders confronted Lars Fruergaard Jorgensen, CEO of Danish pharmaceutical company Novo Nordisk, over the high prices of the company’s popular diabetes and weight-loss medications, Ozempic and Wegovy. Sanders alleged that these exorbitant prices could result in the preventable deaths of 40,000 people annually in the United States if the company doesn’t take steps to make the medications more affordable.
“From a moral perspective, does it bother you knowing that keeping the price of Ozempic and Wegovy so high in the United States could lead to the preventable deaths of tens of thousands of Americans?” Sanders, chair of the Senate Health, Education, Labor and Pensions Committee, asked, citing research from a Yale epidemiologist. The confrontation comes amid growing concerns over the high cost of life-saving medications in the U.S. compared to other countries, with Bernie Sanders leading multiple investigations into pharmaceutical pricing practices.
Novo Nordisk Defends Pricing Amid Criticism
In his defense, Jorgensen reiterated Novo Nordisk’s commitment to making its medications more accessible to Americans. “We are very committed to making sure that Americans have access at an affordable price point for our medicines,” he stated. However, he pointed to the complexity of the pricing system in the U.S., noting that the company pays back around 75% of its sales in rebates, discounts, and fees, which reduces the net price the company receives significantly. He also argued that previous efforts to lower prices for certain products had led to reduced patient access, as pharmacy benefit managers (PBMs)—the middlemen that negotiate drug prices—often prioritize drugs with higher rebates.
“The broad totality is that fewer patients have access to our medicines when we lowered the price,” Jorgensen told Sen. Maggie Hassan of New Hampshire, adding that PBMs penalize drugmakers by removing medications from insurance coverage when prices drop. This argument has been central to Novo Nordisk’s stance on the issue, as the company continues to emphasize that lowering prices may not lead to broader access for patients.
U.S. vs. Global Drug Pricing Disparities
Senator Bernie Sanders highlighted the stark difference in pricing between the U.S. and other countries, illustrating the broader problem with the American healthcare system. According to Sanders, a four-week supply of Ozempic costs $969 in the U.S., while the same medication is priced at $155 in Canada, $122 in Denmark, and just $59 in Germany. Similarly, Wegovy, which costs $1,349 in the U.S., is available for much lower prices in Europe, with prices in Denmark, Germany, and the U.K. at $186, $140, and $92, respectively.
The hearing underscored a familiar debate about who is responsible for the high cost of medications in the U.S. While Jorgensen blamed PBMs for inflating prices, the PBMs’ industry group, the Pharmaceutical Care Management Association, fired back, accusing Novo Nordisk and other pharmaceutical companies of deliberately keeping prices high to maximize profits. “PBMs are the only entities in the health care system working to mitigate the impact on patients, employers, and taxpayers of Big Pharma’s outrageous prices,” the association stated.
Senator Bernie Sanders, however, announced during the hearing that the committee had obtained written pledges from the largest PBMs to maintain access to Ozempic and Wegovy if Novo Nordisk lowered their list prices. Jorgensen expressed surprise at the news and stated that the company would look into any opportunities to make the drugs more affordable. However, he remained cautious, citing past experiences with price reductions resulting in decreased access.
The debate over the price of Ozempic, Wegovy, and other medications continues to highlight the challenges of drug pricing in the U.S., where patients often pay significantly more for life-saving treatments than those in other developed nations. As Sanders and other senators push for accountability and price reductions, the pharmaceutical industry and PBMs remain at the center of this complex issue.
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