Novo Nordisk A/S NVO announced that its weight-loss drug Wegovy has reached 1.2 million U.S. patients. Of these, 55 million individuals are covered by insurance, and over 80% pay less than $25 per prescription, according to statements made during the company’s fourth-quarter 2024 earnings call.
What Happened: The Danish pharmaceutical giant faces potential challenges as semaglutide-containing products, including Wegovy, Ozempic, and Rybelsus, have been selected for the second round of Centers for Medicare and Medicaid Services (CMS) price negotiations.
The negotiations are set to conclude in early November, with maximum fair prices to be published by month-end and implementation scheduled for Jan.1, 2027.
“We oppose government price setting like we have from the beginning,” stated David Moore, Executive Vice President of U.S. Operations and Global Business Development at Novo Nordisk.
The pricing debate has drawn attention from diverse quarters, including Tesla Inc. CEO Elon Musk and Sen. Bernie Sanders, (I-VT), who have both criticized the drug’s high U.S. costs.
Sanders highlighted that Wegovy’s monthly prescription costs $1,349 in the U.S., compared to significantly lower prices in other countries: $186 in Denmark, $140 in Germany, and $92 in the U.K.
Why It Matters: The situation has become more complex with the involvement of Musk’s Department of Government Efficiency (DOGE), which has gained access to CMS systems. The move is part of a broader initiative to identify potential fraud and waste in government healthcare spending, though CMS maintains that two senior agency veterans are overseeing the collaboration to ensure appropriate system access.
Despite these challenges, Novo Nordisk remains focused on market expansion. “Building a sustainable obesity market for the long term is through market access and having patients have a reasonable co-pay,” Moore said.
Looking ahead, Novo Nordisk projects sales growth between 16% and 24% in constant exchange rates for 2025, though this represents a decrease from the 26% growth achieved in 2024.
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