Sanders Confronts Novo Nordisk CEO on Rising Ozempic and Wegovy Prices

Senator Sanders Presses Novo Nordisk CEO on Drug Pricing

During a recent Senate hearing, Senator Bernie Sanders pressed Novo Nordisk CEO Lars Fruergaard Jørgensen on the rising prices of Ozempic and Wegovy. Jørgensen attributed the high cost to the role of pharmacy benefit managers (PBMs), stating that they require substantial rebates to ensure favorable insurance coverage.

The Role of Pharmacy Benefit Managers

Jørgensen stated that the net price for Ozempic has decreased by 40% since 2018 due to these rebates. Sanders, however, revealed that he had received commitments from major PBMs stating that a reduction in list price would not negatively affect their coverage decisions.

Questions About Pricing Discrepancies

Sanders challenged Jørgensen on why the prices for these medications are significantly higher in the U.S. compared to other countries. For instance, Ozempic costs up to $969 in the U.S. but only $155 in Canada. “Treat the American people the same way that you treat people all over the world,” Sanders urged.

Impact of Pricing Strategies

Despite assurances, Jørgensen expressed concerns about the efficacy of reducing list prices and the actual benefits to patients. He noted instances where lowering prices had resulted in reduced coverage.“Cutting list prices doesn’t guarantee expanded coverage,” he claimed.

Conclusion: The Need for Accountability

Bipartisan discussions surrounding PBM reforms have stalled, leading to skepticism about future pricing strategies. Senator Tim Kaine highlighted the need for legislative action to hold these entities accountable for their influence on drug pricing.