The Blubber

Novo Nordisk CEO Lars Fruergaard Jørgensen highlighted the difficulties Americans face in navigating the "complex U.S. healthcare system" and emphasized that "no company alone can solve such vast and complicated policy challenges." He defended the high prices of Novo's weight-loss drugs in the U.S., which are significantly more expensive than in Europe and the U.K.

Jørgensen spoke out on Tuesday after receiving criticism from Senator Bernie Sanders, who in May called on Novo Nordisk to “help the American people” by reducing its profit goals to more effectively combat the U.S. diabetes and obesity crisis.

Jørgensen Defends Pricing

GLP-1 drugs, initially developed to treat type 2 diabetes, have recently gained widespread popularity due to their effectiveness in promoting weight loss. Novo Nordisk, the maker of Ozempic, Wegovy, and Semaglutide, has seen its market value surge by over 240% since 2021, with annual sales rising 65% between 2021 and 2023. The company’s market valuation even surpassed Denmark’s annual GDP last year, underscoring its economic influence.

Despite the drugs' potential to address obesity, their high U.S. prices have drawn attention from lawmakers. Jørgensen volunteered to testify before the Senate Committee on Health, Education, Labor, and Pensions (HELP) after facing pressure from Sanders and other senators over the disparity in pricing. Initially, the committee planned to subpoena Doug Langa, Novo's president, before Jørgensen offered to testify.

Price Disparities Between the U.S. and Europe

In the U.S., consumers pay significantly more for Novo’s drugs compared to those in the U.K. and Europe. For example, Wegovy costs 1,300% more in the U.S. than in the U.K. In written testimony, Jørgensen noted that 90% of insured U.S. patients pay less than $50 per month for Ozempic and Wegovy, and that Ozempic is covered by 99% of commercial insurance plans, as well as Medicare and Medicaid in all 50 states. However, Wegovy is covered by only 50% of commercial plans and in 20 Medicaid states, leaving many with limited access.

Jørgensen acknowledged the barriers to affordability in the U.S. system, stating, "The complexities of the system unfortunately reduce access and affordability for many Americans. We are eager to work with this Committee to address these systemic issues."

Sanders' Criticism

Sanders has been vocal in his opposition to Novo Nordisk’s pricing, accusing the company of overcharging Americans. A HELP Committee investigation found that Americans were paying $1,349 for a month’s supply of Wegovy, while U.K. consumers were charged only $92. In June, Sanders condemned the pricing, saying, "The American people are sick and tired of being ripped off by giant pharmaceutical companies who make huge profits while charging us outrageous prices."

He urged Novo Nordisk to "stop ripping off the American people" and align U.S. prices with those in other countries.

Research and Expansion

In his testimony, Jørgensen sought to highlight Novo’s role in addressing obesity, noting that the company spent $4.2 billion on diabetes and obesity research and development in 2022—50% more than the U.S. National Institutes of Health. He also emphasized the company’s commitment to expanding its production capacity in the U.S., a move driven by the skyrocketing demand for GLP-1 drugs following their weight loss benefits.

Jørgensen concluded by agreeing that affordability is key, stating, “You have said that our amazing medicines can’t help patients if they can’t afford them. That is true. Patients need both affordability and access.”