Novo Will Cut Ozempic and Wegovy Prices Amid Fierce Competition
The weight loss pills that started America’s GLP-1 craze are about to cost a lot less, though only certain customers will notice the savings.
Novo Nordisk said it will drop the prices of its blockbuster diabetes and weight-loss drugs Ozempic, Rybelsus, and Wegovy to $675 for one month’s coverage effective Jan. 1, 2027. All three drugs currently have a list price of more than $1,000 for a one-month supply, with a 4-pill injection of Wegovy $1 the most.
The price cut will not affect consumers who pay cash for their weight loss pills. Novo Nordisk officials said the price reduction is intended to make the drug more affordable for consumers with insurance plans that coordinate the price of the drug.
The price cut also comes as Novo Nordisk faces stiff competition from Eli Lilly, a drugmaker whose obesity drug, Zepbound, has taken a growing share of the weight-loss market.
On Feb. 23, Novo Nordisk released the results of a recent study showing participants who took the next-generation obesity drug, CagriSema, did not lose as much weight as those who took Eli Lilly’s Zepbound. Shares in Novo Nordisk fell 16% on Monday after it released key results for the weight loss drug.
Which Wegovy, Ozempic customers will save money?
For co-pay customers, Novo previously lowered the price of injectable Wegovy and multi-dose Ozempic to $349 per month, down from $499, for consumers who buy the drug directly from the drugmaker, telehealth partners, or retail pharmacies.
Lilly also announced a price reduction for consumers who purchase Zepbound directly.
The list price reductions for Ozempic and Wegovy should make the drugs more affordable for consumers whose coverage requires them to pay coinsurance — or a percentage of the total cost of the drug, said Novo Nordisk Senior Vice President of US Operations Jamey Millar. The price reduction should also help consumers with insurance plans with high deductibles, which require enrollees to pay a certain amount before the money kicks in.
“We think this speaks to and answers the repeated calls for lower prices on (Capitol) Hill and elsewhere, and the call for lower prices for our patients who want access to these new drugs,” Millar said.
About 7 in 10 people who took GLP-1 drugs said the cost of the drug influenced their decision to start or continue treatment, according to a study released on Feb. 24. A survey commissioned by Navitus Health Solutions of nearly 2,000 people found 1 in 4 paid more than $250 for every prescription refill.
Sharon Faust, chief pharmacy officer at Navitus, said the study raises concerns about the cost of GLP-1 drugs and their affordability.
“There’s a tough trade-off for patients and plan sponsors alike,” Faust said.
While employers often cover the cost of diabetes medications like Ozempic and Lilly’s Mounjaro for their employees, employers are less likely to pick up the tab for weight loss medications.
A survey by benefits consultant Mercer found 49% of large employers using GLP-1 drugs by 2025, up from 41% by 2023. Another survey by the non-profit health policy organization KFF found 43% of large employers would pay for anti-obesity drugs by 2025.
Novo’s Millar said the company announced the price drop more than 10 months before the list price changes took effect, in part, to allow employers, health insurers and other businesses to structure benefits around lower prices.
The goal is to “develop the insurance-based market side in terms of quality, access and affordability,” Millar said.
Novo’s next-generation drug is lacking in research
Novo is promoting CagriSema as a potential successor to Wegovy.
The results of the Novo study, released on Feb. 23, compared CagriSema with Lilly’s tirzepatide in weight loss. Tirzepatide is sold in the United States under the brand name Zepbound for weight loss and Mounjaro for diabetes.
The study showed that CagriSema achieved a 23% reduction in body weight over 84 weeks, compared to 25.5% for Eli Lilly’s tirzepatide in the trial.
In a conference call on Monday, February 23, Novo executives said that CagriSema still has the potential to deliver the highest weight loss of any drug on the market after its expected approval by the Food and Drug Administration at the end of 2026 and launch in 2027.
Novo and Lilly have both faced competition from phone companies that still sell generic brands of anti-obesity drugs, often at a fraction of the cost. Novo recently sued Hims & Hers, a move the company said should put other phone companies on notice.
“We expect all of them to be aware of what could be the result of their continued behavior,” John Kuckelman, general counsel of the Novo Nordisk group, told USA TODAY.
Credit: Reuters
This article first appeared in USA TODAY: Novo to drop Ozempic and Wegovy prices amid intense competition.
Reporting by Ken Alltucker, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
