WASHINGTON — Sen. Bernie Sanders, I-Vermont, opened the Senate Health, Education, Labor, and Pensions committee on Tuesday by pointing out that Americans could die if they cannot afford life-saving weight loss and diabetes drugs sold under the brand names Ozempic and Wegovy.
Sanders questioned Lars Jorgensen, the CEO of the pharmaceutical company Novo Nordisk, on why Ozempic costs Americans nearly a thousand dollars for a month’s supply, compared to about $60 in Germany.
“The outrageously high cost of Ozempic, Wegovy and other prescription drugs is directly related to the broken, dysfunctional and cruel health care system in our country,” Sanders said.
Jorgensen blamed pharmaceutical benefit managers, the companies negotiating prescription drug costs on behalf of health insurance plans. Jorgensen claimed PBMs punish drug companies that reduce prices since the reductions mean less money for the PBMs. Sanders said he had written confirmation that major pharmaceutical benefit managers would not limit coverage if the list price was reduced for Ozempic and Wegovy. Jorgensen seemed skeptical of the terms but said he’d be happy to meet with them.
When asked by Sen. Ted Budd, R-North Carolina, if Jorgensen had suggestions to reduce the “perverse incentives,” to deliver savings and value to patients, Jorgensen said, “If we could stop linking their income to a list price, I think that would create an incentive that is not as absurd as it is today.”
“I would prefer doing business on the net price,” Jorgensen continued, “where I compete against competitors based on what is the real price for our medicine and what is the value of the medicine.”
Senator Tammy Baldwin, D-Wis., brought up a different concern, asking Jorgensen if his company’s focus on Ozempic and Wegovy will affect its ability to keep up with insulin needs.
“The world market for insulin is actually declining, so there’s less demand, but we are committed to supply to the patient that has been using our insulin for years, also into the future, and will keep investing in innovation,” Jorgensen said.
The Pharmaceutical Care Management Association issued a statement ahead of the hearing saying big pharma’s “favorite messaging tactic,” is pointing the finger and avoiding accountability. It added, “PBMs are engaged in the pressing work of helping patients, employers and other health plan sponsors navigate the urgent challenge of the day posed by Big Pharma’s egregious pricing of GLP-1 drugs for diabetes and weight loss.”
Jorgensen said a majority of Americans with insurance coverage pay $25 or less a month for the drugs, and that the company has programs to support patients who cannot afford them.