Novo Nordisk will significantly cut the price of its weight-loss miracle drug in the US next year, with reductions of up to 50%

Novo Nordisk Announces Significant Price Cuts for Star Weight Loss Drugs Wegovy and Ozempic in the U.S. Market, with a Uniform Monthly Price of $675 for Semaglutide Series Drugs, Up to 50% Reduction, Effective January 1st Next Year. This move marks a major shift in the Danish pharmaceutical company’s competitive strategy in the obesity market.

Following the announcement, Novo Nordisk’s stock fell 3% pre-market, while Eli Lilly’s stock dropped over 4% pre-market. Notably, Novo Nordisk just announced disappointing trial data for its next-generation drug CagriSema this Monday, after which its stock has declined approximately 19%. The price reduction decision was made in this context, further fueling market concerns.

This price cut is a proactive response after Novo Nordisk lost its leading position in the obesity market. Eli Lilly’s competitor Zepbound is currently priced at $1,086.37 per month. After Novo Nordisk’s uniform pricing at $675, it now has a clear pricing advantage.

Jamey Millar, head of Novo Nordisk’s U.S. operations, stated that the price reduction will not directly impact the company’s net sales but is optimistic about gaining payer approval. Millar previously worked at Optum Rx, a pharmacy benefit management company under UnitedHealth Group, and is well-versed in U.S. drug pricing strategies. He said:

“Payers have previously publicly called for lower drug prices, and I am confident they will accept and welcome these lower prices.”

Patients with high-deductible plans benefit the most

The price reduction targets wholesale procurement costs, which are publicly listed prices and do not reflect the complex discount and rebate system in the U.S. market. Under commercial insurance coverage, patient out-of-pocket costs for Zepbound and Wegovy can currently be as low as $25 per month.

Jamey Millar pointed out that the price cut will have the most significant impact on enrollees in high-deductible insurance plans. In such plans, patients’ out-of-pocket expenses are more closely linked to the drug’s list price. Additionally, plans with coinsurance (where patients pay a fixed percentage of the list price) will also benefit.

According to the Kaiser Family Foundation’s employer health benefits survey, about one-third of insured employees in large companies participated in high-deductible health plans paired with health savings accounts last year. However, less than half of these large employers cover GLP-1 weight loss drugs like Wegovy.

The price reduction will also be synchronized with discounts negotiated with the U.S. government for Medicare (the federal health insurance program for seniors), effective next year. Millar emphasized that these two price reduction measures are independent and unrelated.

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