Ozempic maker Novo Nordisk facing pressure as study finds $1,000 appetite suppressant can be made for just $5.

AndyG

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May 26, 2024
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Summary:
  • A study by researchers at Yale University, King's College Hospital in London, and Doctors Without Borders found that the diabetes drug Ozempic, made by Novo Nordisk, could be produced for as little as $0.89 to $4.73 per month's supply, including a profit margin. This is a tiny fraction of its $968.52 monthly list price in the U.S.
  • The researchers aim to provide transparency on drug production costs, which are often kept secret by pharmaceutical companies. The highest cost for Ozempic is the disposable injection pens, estimated at up to $2.83 per month, while the active drug semaglutide only costs about $0.29 per month's supply to produce.
  • Senator Bernie Sanders criticized the "outrageously high price" of Ozempic, saying it could bankrupt Medicare and called on Novo Nordisk to lower the U.S. price to $155 or less per month, in line with other countries.
  • Novo Nordisk defended its pricing, citing investments in production facilities, research and rebates/discounts, but the study suggests extremely high profit margins for drugs like Ozempic.
  • The findings reignite debates around pricing for top-selling diabetes and obesity drugs, extending previous research showing steep U.S. markups compared to production costs.
 
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