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Novo Nordisk A/S (NYSE:NVO) CEO Lars Fruergaard Jørgensen has defended the high U.S. prices of the company’s blockbuster drugs, Ozempic and Wegovy, stating that these medications are reducing the economic burden of obesity-related health issues.
In an interview with NBC Nightly News, Jørgensen emphasized the costly impact of obesity in the U.S., which exceeds $400 billion annually, asserting that the company’s treatments are helping alleviate this financial burden.
He dismissed accusations that Novo Nordisk operates as a drug cartel as “unfounded.”
Also Read: Novo Nordisk’s Ozempic Might Be Among 2027 Medicare Price Negotiation Targets.
Jørgensen’s comments come ahead of his scheduled testimony before a Senate committee next month, where he will address the pricing of Novo Nordisk’s widely popular diabetes and weight loss drugs.
Senator Bernie Sanders, chair of the Health, Education, Labor and Pensions (HELP) Committee, has been vocal about the stark price differences for Ozempic and Wegovy between the U.S. and other countries.
According to a HELP Committee report, the drugs are priced at around $1,300 per month in the U.S., compared to significantly lower prices in Denmark, Germany, and the U.K. Sanders has accused Novo Nordisk of “ripping off the American people.”
While the cost of obesity-related care in the U.S. is substantial, experts question whether the current prices of Ozempic and Wegovy truly offset these costs.
A report from the KFF found that individuals with obesity and employer-based health insurance face significantly higher annual healthcare costs than those without obesity.
Stacie Dusetzina, a health policy professor at Vanderbilt University, noted that although these drugs could improve health outcomes for many, their high prices likely prevent them from delivering overall savings in healthcare spending.
Jørgensen expressed willingness to testify before the Senate committee.
He pointed to insurance companies and pharmacy benefit managers (PBMs) as significant contributors to the high out-of-pocket costs faced by patients.
PBMs, which negotiate discounts with drug manufacturers, have come under scrutiny for potentially inflating drug prices through their consolidation and market influence.
The Federal Trade Commission’s recent report highlighted concerns about PBMs driving up patient costs.
Despite acknowledging patients’ challenges with inadequate insurance, Jørgensen maintained that Novo Nordisk offers support programs to assist those who struggle to afford their medications.
Experts remain uncertain about the long-term cost-effectiveness of these drugs, given their relatively recent introduction for weight loss.
Price Action: NVO is down 0.99% to $135.61 during the premarket session at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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