Weight-loss drugs are substantially more expensive in the US than in other comparably large, high-income countries, according to a new analysis from the health policy organization KFF.
The analysis compared list prices (ie., before insurance or other discounts) across different counties, and found that Americans are paying over ten times as much in some cases for these blockbuster drugs.
For example, a 30-day supply of diabetes and off-label weight-loss drug Ozempic from Novo Nordisk (NYSE:NVO) is listed for $936 in the US, compared to just $168 in Japan, $103 in Germany, $96 in Sweden and $83 in France.
Wegovy, another Novo Nordisk (NYSE:NVO) drug with the same active ingredient as Ozempic, costs more than $1,300 in the US but is available for just $328 in Germany.
Other pharmaceutical companies’ prices are no better. Eli Lilly and Co (NYSE:LLY)’s drug Mounjaro, which is priced at $1,023 in the US, compared to $444 in the Netherlands and $319 in Japan.
Not coincidentally, Novo Nordisk shares are up 33% year to date, while Eli Lilly has gained nearly 50%.
The KFF report noted that some countries negotiate directly with drugmakers to reach lower list prices. Others, including the US, do not.
Now, these exorbitant list prices are putting a strain on insurance budgets, and in many cases, insurance companies are refusing to cover them, according to reports.
Meanwhile, some 100 million US adults are obese, and many cannot afford to pay the list prices out of pocket.
KFF also found that price impacts patients’ interest in a drug. A survey released by the firm earlier this month found that nearly half of American adults are interested in a prescription weight-loss drug, but that number drops to 16% if it isn’t covered by insurance.
However, insurers could increase their coverage of weight-loss drugs if recent data from Novo Nordisk is any indication.
The drugmaker released trial data last week that showed Wegovy reduced the risk of serious heart problems and heart-related death by 20% in overweight or obese patients with established cardiovascular disease.
That suggests that obesity drugs such as Wegovy could offer health benefits in addition to weight loss, perhaps putting more pressure on insurers to cover them.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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