Copenhagen, Denmark – A recent study conducted by researchers from Yale University, King’s College Hospital in London, and Doctors Without Borders revealed staggering cost differences in the production and pricing of the diabetes and obesity treatment drug, Ozempic. The study found that despite being able to produce a month’s supply of Ozempic for as little as 89 cents to $4.73, Novo Nordisk A/S charges a monthly list price of $968.52 for the drug in the United States.
According to the study, the profit margin on drugs like Ozempic is significant, prompting calls for Novo Nordisk to lower their list price to align with prices in other countries. Senator Bernie Sanders voiced concerns over the high prices of drugs like Ozempic potentially bankrupting Medicare and the healthcare system. Novo Nordisk, on the other hand, emphasized their investments in ensuring public access to their popular drugs, with combined 2023 sales of Ozempic and its related drug, Wegovy, exceeding $18 billion.
The study delved into the production costs of Ozempic, revealing that the most significant cost lies in the disposable pens used for injections. While the active drug in Ozempic is not cheap to produce, costing over $70,000 per kilogram, the study estimated that the active drug could be produced for about 29 cents for a month’s supply.
Debate surrounding the cost of drugs like Ozempic and Wegovy continues to grow as state health plans and Medicaid offices face rising bills for these treatments. The study’s authors emphasized the need for transparency in drug pricing and production costs, advocating for fair pricing policies that take into account the actual costs of manufacturing these drugs.
Overall, the study sheds light on the discrepancies between production costs and list prices for drugs like Ozempic, raising important questions about affordability, accessibility, and transparency in the pharmaceutical industry. As the debate over drug pricing intensifies, stakeholders are increasingly scrutinizing the practices of drug manufacturers in setting prices for life-saving medications.