Novo Nordisk Faces Scrutiny Over High Prices of Ozempic And Wegovy, Blames US Health System
Portfolio Pulse from Vandana Singh
Novo Nordisk (NYSE:NVO) is under scrutiny for the high prices of its diabetes and obesity drugs, Ozempic and Wegovy. The company retains about 60% of the list price after rebates and fees. Senator Bernie Sanders is urging price reductions, highlighting the disparity between production costs and market prices. Novo Nordisk defends its pricing, citing significant investment in drug development. The potential market for GLP-1 drugs could reach $150 billion by the early 2030s.
May 28, 2024 | 3:59 pm
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Novo Nordisk is facing scrutiny over the high prices of its drugs Ozempic and Wegovy. The company retains about 60% of the list price after rebates and fees. Senator Bernie Sanders is urging price reductions, highlighting the disparity between production costs and market prices. Novo Nordisk defends its pricing, citing significant investment in drug development.
The scrutiny and potential regulatory pressure from Senator Sanders and the Senate Health Committee could negatively impact Novo Nordisk's stock price in the short term. The focus on high drug prices and the disparity between production costs and market prices may lead to increased regulatory actions or public backlash.
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