Novo Nordisk to slash Wegovy, Ozempic U.S. list prices by up to 50%

Novo Nordisk He said this on Tuesday plans to lower monthly list prices We will increase the number of popular obesity and diabetes medications in the U.S. by up to 50% starting in 2027 to make treatments more accessible to covered patients.

Obesity injection Wegovy, its new pill equivalent, diabetes vaccine Ozempic, and oral diabetes drug Rybelsus will have a new lower list price of $675 per month starting January 1, 2027. Both of Wegovy’s medications currently have list prices around $1,350 per month, while the diabetes medications have list prices around $1,027 per month.

Novo said that for the first time, the price cuts are aimed at insured patients whose out-of-pocket expenses are tied to list prices, such as people with high-deductible health plans or co-insured benefit designs.

“Both of these patient populations are initially [in 2027]”See the benefit of reduced out-of-pocket expenses,” Jamey Millar, the company’s president of U.S. operations, told CNBC in an interview.

He added that Novo expects improvements in access and uptake among patients in the commercial insurance market, but the company did not give any specific expectations.

This move could help Novo compete better Eli Lillycurrently holds a majority share of the blockbuster GLP-1 market. Lilly’s more effective drugs and earlier entry into the direct-to-consumer space have allowed it to take the lead in this space, but the company has yet to significantly lower the U.S. list prices of its drugs.

It’s unclear exactly how much commercially insured patients typically pay out-of-pocket for Novo’s drugs. These patients could pay as little as $25 a month for Novo’s drugs “only under the best of circumstances,” Millar said.

But he added that patients on high-deductible plans would have to pay out of pocket “more or less the full list price of a drug until they reach that threshold” and the insurance benefit would kick in. Some of these patients postpone treatment altogether because they don’t want to take on this expense, Millar said. He noted that the number of patients using high-deductible plans has increased over the years due to the trade-off of lower premiums.

Meanwhile, Millar said 25% to 33% of other people’s co-insurance is tied to the list prices of these drugs.

The Danish drugmaker had previously reduced direct-to-consumer prices of Wegovy and Ozempic; This primarily benefits patients who pay cash and often do not have insurance coverage for medications.

Novo offers its drugs to cash-paying patients at prices ranging from $149 to $499 per month, depending on the specific product and dosage. Novo and Lilly escalated their GLP-1 pricing war last year, especially after their landmark “most preferred nation” deals with President Donald Trump in November.

The move also coincides with new, lower Medicare prices for Novo’s obesity and diabetes drugs taking effect in 2027, following negotiations with the federal government under the Inflation Reduction Act. The newly negotiated prices for Wegovy, Ozempic, and Rybelsus will be $274 per month.