Shares of Eli Lilly and Novo Nordisk dropped Friday, after President Donald Trump stated his administration goals to chop the price of model title GLP-1 weight reduction medication to $150 per thirty days, a fraction of their present checklist value.
“In London, you’d purchase a sure drug for $130 and even lower than that … $88 as of… a month in the past. And in New York, you pay $1,300 for a similar factor,” Trump stated throughout a Thursday afternoon occasion about in vitro fertilization on the White Home. “As an alternative of $1,300 you may be paying about $150 and so they’ll be paying $150 so we’ll pay the identical factor.”
Requested by a reporter what drug he was referring to, Trump replied, “I used to be referring to Ozempic or … the fats loss drug.”
At that time, Facilities for Medicare and Medicaid Administrator Dr. Mehmet Oz interjected and harassed that the administration has not but agreed to GLP-1 value reductions with drugmakers.
“We have now not negotiated these but … We’ll be rolling these out over time, the GLP class of medicine, which incorporates Ozempic haven’t been negotiated but,” Oz stated.
Only a week in the past, Oz had stated that the administration was “in the course of numerous motion” with value discussions with weight reduction drugmakers.
Eli Lilly shares closed 2% decrease Friday, whereas Novo Nordisk’s inventory fell 3% in U.S. buying and selling. In the meantime, shares of Hims & Hers Well being — which sells less expensive compounded GLP-1s — plunged greater than 15%.
Eli Lilly and Novo Nordisk had been amongst 17 of the most important U.S. pharmaceutical firms that obtained letters from the Trump administration following the president’s govt order on so-called most-favored nation pricing, demanding that companies convey U.S. drug costs in keeping with these in different developed nations.
Pfizer and AstraZeneca have signed on to the president’s initiative, hanging drug pricing offers with the administration. However Trump and Oz’s feedback make it clear the administration is seeking to get the burden loss drugmakers on board.
$150 GLP-1 can be cheaper than compounders
Whereas demand for weight reduction medication has grown, value has remained an impediment for customers and employers.
Solely about one in 5 massive employers at present provide GLP-1s for weight reduction, in keeping with a brand new survey from the Kaiser Household Basis. Of those that do, two-thirds say the excessive price medication have had a “important” affect on their prescription drug spending.
Employees who do not get protection via medical health insurance have more and more turned to the money market to purchase the medication on their very own.
Eli Lilly and Novo Nordisk promote discounted variations of their diabetes and weight reduction medicines on their direct-to-consumer websites at roughly $500 a month. Telehealth suppliers like Hims & Hers provide compounded variations of GLP-1s for lower than half that value, wherever between $130 to $200 per thirty days.
If the administration may convey the money value for common weight reduction medication like Lilly’s Zepbound and Novo Nordisk’s Wegovy right down to $150, that will be aggressive with compounded choices and will have a significant affect on the present money market.
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