(Reuters) - Novo Nordisk (NYSE:NVO)'s blockbuster diabetes drug Ozempic will be eligible for U.S. government's price negotiations in less than a year based on current criteria, the Danish drugmaker's CEO Lars Fruergaard Jorgensen said in his written testimony on Monday.
Jorgensen is set to testify before a Senate committee on Tuesday in a hearing focused on U.S. prices for its widely popular Ozempic and weight-loss drug Wegovy.
WHY IT'S IMPORTANT
The comments confirm what Wall Street analysts have been saying: that the 2027 list of price negotiations will include Novo's Ozempic. Last week, another executive from Novo had said at an industry conference that Ozempic would "very likely" be on the 2027 list. The list will be announced in February of 2025.
BY THE NUMBERS
A month's supply of Ozempic has a U.S. list price of $935.77, while Wegovy lists for $1,349.02 per month, according to the drugmaker's website, although most consumers pay less based on their insurance plans.
CONTEXT
The Inflation Reduction Act of 2022 allows Medicare to negotiate prices for prescription drugs that had been particularly expensive for the federal health program, which covers millions of Americans aged 65 and older as well as the disabled.
Novo's Ozempic and weight-loss drug Wegovy, both hugely popular drugs, have faced criticism from lawmakers over their high prices in the United States.
Jorgensen said in his written testimony that the net price of Ozempic - the amount that Novo is actually paid for the medicine - has declined by about 40% since its introduction in the United States, and the net price of Wegovy has similarly declined since its launch less than three years ago.
He added that under current market conditions, Novo expects that net prices will continue to decline for both Ozempic and Wegovy.