Senate Hearing on Diabetes and Weight-Loss Drug Pricing #

A Senate committee hearing focused on the pricing of popular diabetes and weight-loss drugs, particularly Ozempic and Wegovy. The committee chairman expressed concerns about the high cost of these medications in the United States compared to other countries, suggesting that the prices could lead to preventable deaths.

The CEO of the pharmaceutical company that produces these drugs defended their pricing strategy, stating that they are committed to making the medicines accessible at affordable price points. He explained that the company pays back about 75% of its medicine sales in rebates, discounts, and fees, resulting in a net price much lower than the list price.

The hearing highlighted the ongoing debate about drug pricing in the US, with discussions centering on the roles of pharmaceutical companies and pharmacy benefit managers (PBMs) in determining costs. The CEO argued that lowering list prices in the past had led to reduced patient access due to PBMs’ actions.

During the hearing, it was announced that major PBMs had provided written pledges to maintain access to Ozempic and Wegovy if the manufacturer lowered list prices. The CEO expressed interest in exploring this option but voiced concerns based on past experiences with insulin pricing.

The discussion also touched on the discontinuation of a specific insulin product, Levemir. The CEO explained that this decision was made due to market dynamics and reduced access following a price reduction.

The hearing concluded with mentions of potential future pricing pressures on Ozempic, including its likely eligibility for Medicare drug price negotiations. The complex interplay between drug manufacturers, PBMs, and government policies in determining drug prices and access remains a contentious issue in the US healthcare system.