Novo Nordisk to slash list prices of Ozempic, Wegovy by up to 50%
Ozempic and Wegovy prices will drop by 35% and 50%, respectively, in 2027 as company faces growing competition from cheaper alternatives
Novo Nordisk executive vice president of U.S. operations Dave Moore discusses the drugmaker’s newly launched once-daily oral weight-loss pill on ‘The Claman Countdown.’
Novo Nordisk on Tuesday announced plans to cut the list price of its popular diabetes and weight-loss drugs Ozempic and Wegovy by as much as 50% in the U.S. next year.
The Danish drugmaker indicated the price cuts will be effective on Jan. 1, 2027, and the timing will coincide with new, lower prices for Ozempic and Wegovy under Medicare plans for older Americans.
The company's announcement indicated the list price for various doses of its Ozempic and Wegovy medicines will be lowered to $675, which represents a 50% price cut for Wegovy and 35% for Ozempic from the current level. The price cuts also apply to Wegovy and Rybelsus pills.
"Lowering the list price of Wegovy and Ozempic is the best approach to address the unprecedented opportunity to help more than 100 million people living with obesity and over 35 million people with type 2 diabetes in the United States," said Jamey Millar, executive VP of U.S. operations for Novo Nordisk.
NOVO NORDISK EXECUTIVE REPORTS HIGH INTEREST FOR ONCE-DAILY, ORAL WEIGHT-LOSS PILL
Novo Nordisk announced it will cut Wegovy and Ozempic list prices by up to 50% starting next year. (Dhiraj Singh/Bloomberg via Getty Images)
"Our actions today answer that call and remove cost barriers so the value of Wegovy and Ozempic can be realized by more patients," he explained.
"The lower list price is intended to connect more people with our innovative medicines, specifically those whose out-of-pocket costs are linked to list price, such as individuals with high-deductible health plans or co-insurance benefit designs," Millar added.
AIRLINES HAVE 580 MILLION REASONS TO LIKE GLP-1 WEIGHT-LOSS DRUGS, ANALYSIS FINDS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVO | NOVO NORDISK A/S | 39.63 | -7.79 | -16.43% |
Novo Nordisk's GLP-1 drugs have semaglutide as the active ingredient, which has received FDA approval as a medicine for adults with obesity in the case of Wegovy, while Ozempic is approved for type 2 diabetes.
Additionally, Ozempic injections are FDA-approved for type 2 diabetes and chronic kidney disease, while both Wegovy and Ozempic are approved for comorbid cardiovascular disease.
The pricing changes don't impact direct-to-patient or self-pay prices for consumers.
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Wegovy and other GLP-1 drugs are being used for weight-loss as well as treating diabetes. (Shelby Knowles/Bloomberg via Getty Images)
The market for so-called GLP-1 drugs has become increasingly competitive and a shift to consumer-driven, cash-pay channels is making price points more sensitive. Novo Nordisk is selling Wegovy on its direct-to-consumer website for $349, which is about one-third of its official list price.
Both Novo Nordisk and a leading rival, Eli Lilly, signed deals with the U.S. government to cut prices this year and sell products through TrumpRx.gov – a website that directs consumers to the companies' direct-to-consumer websites.
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The two companies are facing competition from cheaper compounded versions of the drugs offered by telehealth platforms like Hims & Hers, which are permitted to make and sell the drugs in personalized doses or composition.
Reuters contributed to this report.