Novo Announces Ozempic Will Qualify for US Price Negotiations Within a Year, Reports Reuters

Novo Nordisk’s popular diabetes medication, Ozempic, is set to qualify for U.S. government price negotiations in less than a year, according to CEO Lars Fruergaard Jorgensen’s written testimony released recently. Jorgensen is scheduled to appear before a Senate committee to discuss U.S. pricing for Ozempic and Wegovy, a weight-loss drug that has gained significant attention.

This development aligns with predictions from Wall Street analysts, who believe that Ozempic will be included in the 2027 list of drugs subject to price negotiations. An executive from Novo Nordisk indicated at a recent industry event that it is “very likely” Ozempic will make the list, which is expected to be announced in February 2025.

In terms of costs, a month’s supply of Ozempic has a list price of approximately $935.77, while Wegovy is priced at around $1,349.02 per month. However, the actual amount consumers pay often varies based on their insurance arrangements.

The context of these negotiations stems from the Inflation Reduction Act of 2022, which allows Medicare to negotiate prices for high-cost prescription drugs. This program targets medications that have a substantial impact on the federal health program catering to millions of Americans aged 65 and older, as well as individuals with disabilities.

Ozempic and Wegovy, both of which have become very popular, have come under scrutiny from lawmakers due to their steep prices in the U.S. Jorgensen mentioned in his testimony that the net price of Ozempic—the amount Novo Nordisk receives for the medication—has dropped by about 40% since its U.S. launch, and similarly, the net price of Wegovy has also decreased since its introduction. He anticipates that net prices for both drugs will continue to decline under current market conditions.