WASHINGTON, D.C. – Sen. Bernie Sanders of Vermont successfully secured a commitment from Novo Nordisk CEO Lars Fruergaard Jørgensen to engage with pharmacy benefits managers to explore ways to lower the prices of the company’s popular drugs, Ozempic and Wegovy. The discussion took place during a sometimes tense hearing before the Senate Committee on Health, Education, Labor, and Pensions. Jørgensen attributed the high cost of the drugs to the pharmacy benefits managers (PBMs), claiming that a higher list price would lead to increased patient access.
However, Sanders revealed that he had obtained written commitments from major PBMs such as UnitedHealth Group’s Optum Rx, CVS Health’s Caremark, and Cigna’s Express Scripts. These commitments stated that if Novo Nordisk significantly reduced the list price of Ozempic and Wegovy, the drugs would remain on the PBMs’ formularies. PBMs work with insurance companies to negotiate discounts or rebates on drugs for coverage, and they have faced criticism for pushing patients towards more expensive medication.
Sanders pressed Jørgensen on whether Novo Nordisk would substantially lower the prices of the drugs in the U.S. Jørgensen initially hesitated but eventually agreed to work with the committee and PBMs to explore potential price reductions that would enhance patient access to affordable medication. Sanders has been vocal about the high prices Americans pay for prescription drugs compared to other countries, emphasizing the need to make medication more accessible to those in need.
A report released by the Senate Committee highlighted the stark price differences for Wegovy in European countries compared to the U.S. Americans pay significantly more for the same drug, even though the cost of production remains the same. Jørgensen defended the pricing structure, citing the high costs associated with conditions like Type 2 diabetes and obesity in the U.S., and emphasizing the need for affordable medication for patients.
The discussion around drug pricing extended beyond Novo Nordisk, with Senators raising concerns about the role of PBMs in inflating drug prices. The Federal Trade Commission recently filed a lawsuit against major PBMs, accusing them of artificially increasing the price of insulin. Jørgensen pointed out the significant portion of revenue that Novo Nordisk allocates to PBMs and insurance companies, indicating the complex interplay between list prices, rebates, and formulary coverage.
While Republicans on the committee cautioned against government intervention in regulating drug prices, emphasizing the importance of profit incentives for innovation in the pharmaceutical industry, Democrats like Sen. Tim Kaine highlighted the need to address the impact of PBMs on drug affordability. The discussions underscored the ongoing debate surrounding drug pricing, access, and the role of various stakeholders in the healthcare system.