Novo Nordisk has announced a significant reduction in prices for its popular obesity and diabetes medications, Wegovy and Ozempic, following increased competition in the weight loss market and pressure from former President Donald Trump. The company is now offering the first two monthly doses of these medications at a promotional rate of $199, aimed at cash-paying patients, with an expiration date set for the end of March. The prices for additional self-pay patients will be lowered to $349, down from $499, although the 2-milligram dose of Ozempic will continue to be priced at $499.
This decision is part of a broader initiative by drug manufacturers to provide discounts to Americans willing to purchase medications directly from them, thereby bypassing insurance. The price cuts also serve as a strategic response to the challenge posed by compounding pharmacies that offer cheaper alternatives to these widely used GLP-1 drugs.
The announcement comes on the heels of a recent agreement between Novo Nordisk and its rival Eli Lilly with the Trump administration, which aims to expand their reach in the Medicare and Medicaid markets by reducing pricing. Under this deal, consumers purchasing injectable GLP-1 medications directly from the companies will initially pay around $350 per month, with a commitment from drugmakers to reduce the price to approximately $250 over the next two years. If the FDA approves oral GLP-1 medications, the lowest dose will be priced at $149.
Currently, the list prices for GLP-1 drugs vary, typically ranging from $1,000 to $1,350. However, insured consumers tend to pay significantly less. As part of its strategy to enhance sales both in the U.S. and internationally, Novo Nordisk is emphasizing its self-pay channel, which accounts for approximately 10% of total Wegovy prescriptions in the country.
A recent KFF Health Tracking Poll indicated that about one in eight adults are using GLP-1 drugs like Ozempic or Wegovy for weight management or chronic conditions. Notably, cost remains a critical barrier, with many respondents citing it as a reason for discontinuing the medications. While Ozempic is broadly covered by insurance for diabetes treatment, coverage for Wegovy, intended for weight loss, varies significantly due to its higher price point.
The competition in the GLP-1 market is stiff, with other companies like Eli Lilly also slashing prices for their products, including Zepbound. As Novo Nordisk recalibrates its pricing strategy in response to market pressures, these measures aim to make its life-changing medications more accessible to those in need.