Novo Nordisk’s $1,000 diabetes drug Ozempic can be made for less than $5 a month, study suggests

The
blockbuster
diabetes
drug

Ozempic
could
be
manufactured
for
less
than
$5
a
month,
even
as


Novo
Nordisk
charges

close
to
$1,000
per
month
for
the
injection
in
the
U.S.
before
insurance,
a

study
released
Wednesday
suggests.

The
study,
from
researchers
at
Yale
University,
King’s
College
Hospital
in
London
and
the
nonprofit
Doctors
Without
Borders,
raises
more
questions
about
the
hefty
price
tag
of
the
top-selling
diabetes
treatment
and
similar
drugs
for

weight
loss,
which
are
all
part
of
a
new
class
of
treatments
called
GLP-1s.

Demand
for
those
medicines
has
soared
over
the
last
year,
even
as
more
insurers
drop
them
from
their
plans
due
to
cost,
leaving
some
patients
unable
to
afford
the
drugs. 

The
study
also
comes
after
years
of
political
pressure
on
Novo
Nordisk
and
other
drugmakers
to
slash
high
costs
of
diabetes
care,
especially
insulin. 

Ozempic
can
generally
be
produced
for
less
than
various
forms
of
insulin,
according
to
the
study
published
in
JAMA
Network
Open. 

Researchers
found
that
a
month’s
supply
of
the
treatment
could
be
manufactured
for
an
estimated
89
cents
to
$4.73.
They
evaluated
manufacturing
costs
for
the
weekly
injection
along
with
a
profit
margin
with
an
allowance
for
tax
to
produce
those
estimates,
which
they
call “cost-based
prices.” 

Novo
Nordisk’s
list
price
for
a
monthly
package
of
Ozempic
is

$935.77
before
insurance
and
other
rebates.
The
findings
suggest
that
GLP-1s “can
likely
be
manufactured
for
prices
far
below
current
prices,
enabling
wider
access,”
the
researchers
concluded. 

In
a
statement
on
Wednesday,
Novo
Nordisk
declined
to
provide
production
costs
for
Ozempic
and
its
weight
loss
drug
counterpart
Wegovy.
But
the
Danish
drugmaker
noted
that
it
spent
almost
$5
billion
on
research
and
development
last
year,
and
will
spend
more
than
$6
billion
on

a
recent
deal
to
boost
manufacturing
to
meet
demand
for
GLP-1s.

It
also
said
75%
of
its
gross
earnings
go
to
rebates
and
discounts
to
ensure
patients
have
access
to
its
products. 

The
company
also
said
out-of-pocket
costs
for
Ozempic
depend
on
a
patient’s
insurance
coverage.
Patients
with
private
or
commercial
coverage
for
Ozempic
can
access
a
savings
card
and
pay
as
little
as
$25
for
a
one-month,
two-month
or
three-month
supply
of
the
treatment
for
up
to
24
months. 

Separate
research
from
the
University
of
Liverpool
and
other
researchers
has
found
that
Wegovy
could
be
produced
for
$40
a
month.

A

survey
released
this
month
from
Evercore
ISI
found
that
more
than
half
of
people
currently
taking
a
GLP-1
said
they
are
paying
a
monthly
price
of
$50
or
less
out
of
pocket.
Nearly
75%
of
respondents
who
used
to
take
one
of
the
drugs
said
they
spent
the
same
amount.