Is the Price of Ozempic Really So Outrageous?
US Senator Bernie Sanders may think Novo Nordisk is charging too much for its blockbuster obesity drug, but innovation isn’t cheap.
What’s a fair price?
Photographer: : George Frey/Bloomberg
GLP-1 weight-loss drugs alleviate obesity as well as provide other health benefits. Yet they are also the focus of controversy, with the chief executive of Novo Nordisk, the maker of Ozempic and Wegovy, scheduled to testify today before Congress. The title of the hearing leaves little to the imagination: “Why Is Novo Nordisk Charging Americans with Diabetes and Obesity Outrageously High Prices for Ozempic and Wegovy?”
One answer is that high prices for valuable drugs encourage future innovation. Novo Nordisk is now Europe’s most valuable company, and its sales stopped Denmark from falling into recession last year. Novo’s experience may be exceptional, but it is nevertheless a strong incentive for other companies to develop blockbuster drugs, and for governments not to put price controls on them.