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Ozempic And Wegovy Prices Face Scrutiny From Novo Nordisk, Blames US Health System

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Novo Nordisk Faces Scrutiny Over High Prices of Ozempic And Wegovy, Blames US Health System

(CTN News) – Novo Nordisk A/S (NYSE:NVO) has reported that it retains about sixty percent of the list price of Ozempic and Wegovy, its medications for diabetes and obesity, in the United States. These medications are used to treat obesity and diabetes. These medications are used to treat obesity and diabetes.

This information has come to light at a time when the cost of these blockbuster drugs is receiving an increasing amount of criticism.

Recent events have resulted in the Wegovy European pharmaceutical business writing a letter to Senator Bernie Sanders. In the letter, the company expressed its desire to collaborate with politicians in order to overcome the systemic problems that are blocking patients from receiving access to drugs.

Through the letter, the company’s perspective was brought to light, which is that focusing just on the list price does not provide true information. This is due to the significant amount of money that is paid to intermediaries in the complex healthcare system that exists in the United States.

According to Bloomberg, Senator Sanders has been exerting pressure on Novo to reduce the price of Wegovy. This is in an effort to bring attention to the disparity that exists between the costs of production and the prices that are currently being provided on the market.

In stark contrast to the findings of a study that was carried out earlier this year, which discovered that the product could be manufactured for less than $5 per month, the current monthly price of $968.52 for Ozempic is a significant amount of money.

The monthly cost of Wegovy is $1,349.02 USD,

Which is comparable to the preceding example. An examination into Wegovy Novo’s pricing strategies has been initiated by the Senate Health, Education, Labor, and Pensions Committee, which Sanders heads. This investigation was initiated as a result of the difference in pricing that has been seen.

Novo Nordisk justified the pricing of its drugs by pointing out the substantial amount of money that is required for the development of medical technology. Despite the fact that the process of development normally takes more than ten years, the pharmaceutical business stated that it has spent more than ten billion dollars to generate GLP-1 medications.

It is likely that the potential market for GLP-1 drugs might reach $150 billion by the early 2030s. This is due to the fact that their applications go beyond the treatment of obesity and diabetes. It is because of the fact that there are differences in pricing, as well as the fact that the supply has expanded.

According to a report by Bloomberg, analysts expect that Ozempic would generate around $18 billion in sales this year on average. This information was obtained from the company. A significant portion of Wegovy’s revenue is expected to originate from the market in the United States, where over forty percent of the population is obese. It is estimated that Wegovy will bring in close to nine billion dollars.

There is a possibility that the market for GLP-1 drugs might reach $150 billion by the early 2030s, as reported by Reuters. In light of the fact that these medications have potential applications in a wider range of conditions than merely diabetes and obesity, this is the reason.

In the previous year, the amount of money that was spent on medications to treat obesity topped $24 billion worldwide, as reported by IQVIA. It is possible that by the year 2028, this spending will have skyrocketed to a total of $131 billion, according to the most recent forecasts for subsequent five years.

It is anticipated that the yearly growth rate will be 27%, which is an increase over the previous prediction, which was stated to be 13%.

Although both Novo and Eli Lilly and Company (NYSE:) have been increasing their production volume, the availability of both Wegovy and Zepbound continues to be restricted. This is the case despite the fact that both businesses have been increasing their production volume.

NVO shares were trading at $134.29 at the time of the most recent check, which was conducted on Tuesday. This is a one and a half percent reduction from their previous price.

SEE ALSO:

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Study Links Diabetes Weight Loss Medications To Stomach Paralysis

Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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