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Lilly and Novo hit back at Biden/Sanders call for lower LPG-1 prices
Makers of popular diabetes and weight-loss drugs responded to a Tuesday column by President Joe Biden and Sen. Bernie Sanders (D-Vt.) calling for lower drug prices. Their response: The issue is much more complex because of the U.S. drug pricing system.
O column in USA Today focus on Novo Nordisk (NVO), maker of Ozempic and Wegovy, which has been a target for Sanders. Novo CEO Lars Jørgensen agreed to testify before Sanders’ committee in late September.
But the column also mentioned competitor Eli Lilly (LLY) — the maker of Mounjaro and Zepbound — and “other pharmaceutical companies” at exorbitant prices.
“If Novo Nordisk and other pharmaceutical companies refuse to substantially lower prescription drug prices in our country and end their greed, we will do everything in our power to end it for them. Novo Nordisk must substantially lower the price of Ozempic and Wegovy,” Biden and Sanders wrote.
The column is weighing on shares of both companies, with Lilly down 1% and Novo down nearly 2% in Tuesday trading.
In a statement to Yahoo Finance, Novo Nordisk said the difficult and complex problem of drug pricing in the U.S. “is being oversimplified and mischaracterized for political purposes. Every country has its own healthcare system, and making isolated and limited comparisons ignores this fundamental concern.”
Eli Lilly also said the criticism from Biden and Sanders was unfair.
Just Say No to New: Senator Bernie Sanders in June. (Siegfried Nacion/STAR MAX/IPx) (Siegfried Nacion/STAR MAX/IPx)
“Comparing list prices in the United States to those in other countries ignores patient affordability programs and hundreds of billions of dollars in rebates and fees paid to PBMs by pharmaceutical companies that are supposed to lower drug costs for Americans, but unfortunately this system can drive up prices,” Lilly said.
Both companies also said that most Americans have access to the drugs for $25 through savings cards or insurance. Monthly list prices for the injectables have been $1,000 or more; Sanders has repeatedly linked to a Yale University study that found the drugs could be manufactured for less than $5 a month.
Analysts expect Ozempic and Wegovy combined to generate $26 billion in sales for Novo for the full year 2024; Mounjaro and Zepbound could generate about $13.5 billion for Lilly, per Bloomberg.
Novo also said the cost of its two GLP-1s has decreased by 40% since launch.
“Unfortunately, even when we lower our prices, patients in the United States often don’t receive the savings — that’s a problem,” Novo said.
Anjalee Khemlani Anjalee is the senior health reporter for Yahoo Finance, covering everything from pharmaceuticals to insurance to healthcare services, digital health, PBMs, and health policy and politics. Follow Anjalee on all social media platforms @AnjKhem.
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