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(Reuters) – Novo Nordisk’s blockbuster diabetes drug Ozempic can be eligible for U.S. authorities’s worth negotiations in lower than a yr primarily based on present standards, the Danish drugmaker’s CEO Lars Fruergaard Jorgensen mentioned in his written testimony on Monday.
Jorgensen is about to testify earlier than a Senate committee on Tuesday in a listening to centered on U.S. costs for its broadly standard Ozempic and weight-loss drug Wegovy.
WHY IT’S IMPORTANT
The feedback verify what Wall Avenue analysts have been saying: that the 2027 listing of worth negotiations will embrace Novo’s Ozempic. Final week, one other government from Novo had mentioned at an business convention that Ozempic would “very doubtless” be on the 2027 listing. The listing can be introduced in February of 2025.
BY THE NUMBERS
A month’s provide of Ozempic has a U.S. listing worth of $935.77, whereas Wegovy lists for $1,349.02 per 30 days, in response to the drugmaker’s web site, though most customers pay much less primarily based on their insurance coverage.
CONTEXT
The Inflation Discount Act of 2022 permits Medicare to barter costs for pharmaceuticals that had been significantly costly for the federal well being program, which covers tens of millions of People aged 65 and older in addition to the disabled.
Novo’s Ozempic and weight-loss drug Wegovy, each massively standard medication, have confronted criticism from lawmakers over their excessive costs in america.
Jorgensen mentioned in his written testimony that the online worth of Ozempic – the quantity that Novo is definitely paid for the drugs – has declined by about 40% since its introduction in america, and the online worth of Wegovy has equally declined since its launch lower than three years in the past.
He added that beneath present market circumstances, Novo expects that internet costs will proceed to say no for each Ozempic and Wegovy.
(Reporting by Bhanvi Satija in Bengaluru; Enhancing by Shounak Dasgupta)
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