Ozempic ‘Very Likely’ to Face Drug Price Negotiations, Novo Says

Novo Nordisk Execs Hint That The Diabetes Drug Is Likely To Face Price Negotiations, But Maintain They Intend To Defend Its Value

The diabetes drug Ozempic, which has been a blockbuster for Novo Nordisk, is likely to face price negotiations in the future, according to executives at the Danish pharmaceutical company. In an interview with Reuters, Novo Nordisk’s chief executive officer, Lars Fruergaard Jorgensen, said that he believes Ozempic is “very likely” to be included in future drug price negotiations. “We have seen it with other products in the past, and we expect it to happen with Ozempic as well,” Jorgensen said. Jorgensen’s comments come as governments around the world are increasingly looking to negotiate lower prices for prescription drugs. In the United States, for example, the Biden administration has proposed a number of measures to lower drug prices, including allowing Medicare to negotiate prices for certain drugs. Novo Nordisk has been a vocal opponent of government price negotiations, arguing that they would stifle innovation and lead to higher prices for patients in the long run. However, the company has also said that it is willing to negotiate prices on a case-by-case basis. In the interview with Reuters, Jorgensen said that Novo Nordisk is “prepared to have a dialogue” with governments about Ozempic’s price. However, he also said that the company will “defend the value” of the drug. “We believe that Ozempic is a valuable medicine that has helped millions of people with diabetes,” Jorgensen said. “We are confident that we can demonstrate its value to governments and payers.” Ozempic is a once-weekly injectable medication that is used to treat type 2 diabetes. The drug has been shown to be effective in lowering blood sugar levels and reducing the risk of cardiovascular events. Ozempic has been a major commercial success for Novo Nordisk. In 2022, the drug generated sales of DKK 58.3 billion (US$8.3 billion). Novo Nordisk’s stock price fell by 2.5% in the wake of Jorgensen’s comments.

Analysts Say Ozempic Is Likely To Face Price Negotiations In The Future

Analysts say that it is likely that Ozempic will face price negotiations in the future, given the increasing pressure on governments to lower drug prices. “Ozempic is a blockbuster drug, and it is likely to be a target for governments looking to negotiate lower prices,” said David Risinger, an analyst at Morgan Stanley. Risinger said that Novo Nordisk is likely to resist price negotiations, but that the company may be willing to offer discounts or rebates in order to avoid having the drug included in government price-setting programs. “Novo Nordisk has a strong track record of defending the prices of its drugs,” Risinger said. “However, the company may be more willing to negotiate on Ozempic given the increasing pressure on governments to lower drug prices.”