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U.S. Senator Bernie Sanders Calls for Action Against High Drug Prices
Senator Bernie Sanders recently sent a letter to Novo Nordisk CEO Lars Fruergaard Jørgensen, announcing an investigation by the Senate Committee on Health, Education, Labor, and Pensions into the high prices charged by the company for its diabetes and weight loss drugs. The committee, chaired by Sanders, has launched this inquiry to address the exorbitant costs associated with drugs such as Ozempic and Wegovy.
Sanders’ Demands
In his letter to Jørgensen, Sanders urged the CEO to reduce the prices of these drugs and requested internal documents related to their pricing in the United States. The senator set a deadline of May 8 for Novo Nordisk to respond to a series of questions and requests outlined in the correspondence. Sanders acknowledged the potential benefits of these medications for individuals grappling with type 2 diabetes and obesity, crediting the scientists at Novo Nordisk for their contributions.
“The scientists at Novo Nordisk deserve great credit for developing these drugs that have the potential to be a game changer for millions of Americans struggling with type 2 diabetes and obesity,”
Despite recognizing the significance of these treatments, Sanders underscored the issue of affordability, highlighting the vast disparities in drug prices between the U.S. and other countries. For instance, while Ozempic is priced at $969 in the U.S., it costs only $155 in Canada and $59 in Germany. Similarly, Wegovy is listed at $1,349 in the U.S. compared to $140 in Germany.
Financial Implications
The senator warned that the high costs of these drugs could potentially strain government healthcare programs such as Medicare and Medicaid. Citing research from Vanderbilt University and the University of Chicago, Sanders indicated that covering Wegovy and similar medications could exceed an annual cost of over $150 billion for Medicare alone. He argued that such expenses could burden patients and the healthcare system unnecessarily.
Referencing a study that estimated the manufacturing cost of a month’s supply of Wegovy and Ozempic at merely $5, Sanders emphasized the disparity between production expenses and retail prices in the U.S. He asserted that American consumers should not have to pay exorbitant amounts for medications that are significantly cheaper to produce and obtain in other countries.
Company Response
In response to Sanders’ concerns, Novo Nordisk reaffirmed the importance of providing access to effective treatments for patients across various healthcare programs. The company emphasized the complexities involved in drug development, production, and regulatory frameworks that impact pricing decisions. Novo Nordisk also highlighted its substantial investment in research and development, along with its commitment to offering rebates and discounts to support patient affordability.
The demand for Ozempic and Wegovy has surged in recent years, as evidenced by Novo Nordisk’s robust financial performance. The company reported a significant increase in sales in 2023, with projections suggesting continued growth in the coming year.
In conclusion, Sanders’ efforts to address the soaring costs of essential medications underscore the ongoing debate surrounding drug pricing and accessibility in the United States. The outcome of the Senate committee’s investigation and Novo Nordisk’s response could have far-reaching implications for patients, healthcare providers, and policymakers in the pharmaceutical industry.
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