WASHINGTON: US President Joe Biden and Senator Bernie Sanders urged pharmaceutical companies Novo Nordisk and Eli Lilly to reduce the prices of their weight-loss and diabetes drugs. They expressed these remarks in an article published by a US newspaper.
The soaring demand for these drugs, which can help patients lose up to 20% of their body weight, has driven the companies’ shares to record highs. Analysts predict the market for these treatments could reach $150 billion by the early 2030s.
According to the Centers for Disease Control and Prevention, over 40% of Americans are overweight. Biden and Sanders highlighted that if half of obese adults take Novo and Lilly’s weight-loss drugs, it could cost $411 billion annually—$5 billion more than the total amount spent on all prescription drugs in 2022. They warned that if the prices are not significantly reduced, these drugs could bankrupt the American healthcare system. The duo called for a substantial reduction in the prices of Novo Nordisk’s Ozempic and Wegovy.
Novo Nordisk responded by stating that the costs of Ozempic and Wegovy have decreased by about 40% since its launch, and over 80% of insured Americans pay $25 or less monthly for these medicines.
Biden and Sanders did not specify potential actions, but both have histories of advocating for lower drug prices. Last year, Sanders questioned insulin manufacturers and pharmacy benefit managers on high drug prices. Biden’s 2022 Inflation Reduction Act aims to save $25 billion annually by 2031 by requiring price negotiations for select expensive drugs.
