A recent study conducted by researchers at Yale University, King’s College Hospital in London, and the nonprofit Doctors Without Borders has shed light on the exorbitant price of Novo Nordisk’s blockbuster diabetes drug, Ozempic. The study suggests that while Novo Nordisk charges close to $1,000 per month for the injection in the United States, the drug could be manufactured for less than $5 per month. This revelation has raised concerns about the accessibility and affordability of vital diabetes treatments.
Ozempic belongs to a new class of treatments called GLP-1s, which have experienced a surge in demand over the past year. However, due to their high cost, many insurers have dropped them from their plans, leaving patients struggling to afford these medications. The study’s findings only add to the mounting pressure on Novo Nordisk and other drugmakers to reduce the prices of diabetes care.
The researchers compared the manufacturing costs of Ozempic to various forms of insulin and discovered that Ozempic can be produced for less than insulin. Their estimates indicate that a month’s supply of the treatment could be manufactured for as little as 89 cents to $4.73, including a profit margin and taxes. In contrast, Novo Nordisk’s list price for a monthly package of Ozempic is a staggering $935.77 before insurance and rebates.
The study’s authors argue that GLP-1s can be manufactured at significantly lower prices than they are currently being sold for, which would enable wider access to these life-saving medications. However, Novo Nordisk declined to disclose the production costs of Ozempic and its weight loss drug equivalent, Wegovy, in response to the study. The company did emphasize that it invested nearly $5 billion in research and development last year and is spending over $6 billion to boost manufacturing capacity for GLP-1s.
Novo Nordisk also highlighted that 75% of its gross earnings are allocated to rebates and discounts, ensuring that patients have access to their products. Additionally, the company mentioned that the out-of-pocket costs for Ozempic depend on a patient’s insurance coverage. Those with private or commercial coverage can benefit from a savings card, paying as little as $25 for a one-month, two-month, or three-month supply of the treatment for up to 24 months.
Another study conducted by the University of Liverpool and other researchers suggests that Wegovy, Novo Nordisk’s weight loss drug counterpart to Ozempic, could be produced for $40 per month. These findings further highlight the potential for significant cost reductions in GLP-1 medications.
A survey released this month by Evercore ISI revealed that more than half of GLP-1 users reported paying $50 or less per month out of pocket. This suggests that despite the high list prices, some patients are able to access these drugs at more affordable prices. However, it is important to note that these prices may vary depending on insurance coverage and individual circumstances.
The study’s revelations raise important questions about the pricing strategies employed by pharmaceutical companies and the impact they have on patient access to vital medications. As the demand for GLP-1 treatments continues to rise, it is crucial that efforts are made to ensure affordability and accessibility for all patients in need.
In conclusion, the study’s findings suggest that Novo Nordisk’s Ozempic could be manufactured for less than $5 per month, significantly lower than the current list price of close to $1,000 per month. This raises concerns about the affordability of diabetes care and the accessibility of GLP-1 treatments. As the pressure on pharmaceutical companies to reduce prices mounts, it is essential that efforts are made to make these life-saving medications more affordable for all patients.
