Danish pharmaceutical giant Novo Nordisk is facing criticism from US lawmakers over the high prices of its weight-loss and diabetes drugs in the country. Novo Nordisk CEO Lars Fruergaard Jørgensen defended the company, attributing the elevated prices to “structural issues” within the US healthcare system. The Senate panel, led by Senator Bernie Sanders, urged Novo Nordisk to lower the list prices of drugs like Wegovy and Ozempic to make them more affordable for American patients.
During a congressional hearing, Jørgensen expressed willingness to negotiate prices if lawmakers ensured that the drugs remained covered by insurers. He highlighted that the high prices were a result of middlemen and insurers exerting significant influence over price controls. Senator Sanders secured commitments from major Pharmacy Benefit Managers to expand coverage for Novo Nordisk’s drugs if prices were lowered.
Novo Nordisk, whose primary market is the US, reported a 41% sales increase in the country, with demand for diabetes and obesity care, as well as insulin sales driving growth. The company has invested billions in research for obesity-related drugs and is expanding production capacity due to high demand for drugs like Wegovy and Ozempic.
The firm is likely to be on the list of price negotiations in 2027, suggesting a potential price reduction in the future. Novo Nordisk recently acquired its subcontractor, US-based drug maker Catalent, to further expand its presence in the market. Sales and distribution costs rose due to promotional activities for weight-loss drugs in North America and international markets.
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