Senate Hearing on High Ozempic and Wegovy Prices Scheduled

Lars Fruergaard Jørgensen, the CEO of Novo Nordisk, is scheduled to testify before the U.S. Senate Committee on Health, Education, Labor, and Pensions on September 24th. The hearing, led by Senator Bernie Sanders, will address the high prices of the company's diabetes and weight-loss medications, Ozempic and Wegovy. Sanders has criticized the pricing, noting that these drugs cost significantly more in the U.S. compared to other countries, suggesting that the company is exploiting American consumers. Novo Nordisk is expected to defend its pricing strategy by highlighting that most patients have insurance coverage and attributing some price increases to pharmacy benefit managers. The company has invested over $30 billion in manufacturing capacity and claims that the development costs for these drugs exceeded $10 billion over three decades. However, the substantial sales figures, projected to exceed $65 billion by year-end, raise questions about the justification for such high prices. The Senate hearing comes amid growing scrutiny of pharmaceutical pricing in the U.S., with both President Joe Biden and Senator Sanders advocating for lower drug costs. Analysts suggest that Ozempic and Wegovy may be included in Medicare's negotiated drug prices, which could further impact Novo Nordisk's pricing strategy. The outcome of the hearing could influence public perception and regulatory actions regarding drug pricing in the future. As the debate over drug costs continues, the hearing represents a critical moment for Novo Nordisk, as it faces pressure to justify its pricing practices while navigating the complexities of the pharmaceutical market and public health concerns.