Biden Proposes Medicare, Medicaid Entry For Well-liked Weight-Loss Medication – Novo Nordisk (NYSE:NVO)

The Biden-Harris Administration has proposed increasing Medicare and Medicaid protection for anti-obesity medicines, aiming to handle the excessive prices which have drawn criticism. Within the U.S., Novo Nordisk A/S NVO has confronted backlash for the steep costs of Wegovy and Ozempic, two fashionable medication on this class.

Whereas Novo Nordisk’s CEO Lars Fruergaard Jørgensen has defended the excessive U.S. costs of the corporate’s blockbuster medication, Ozempic and Wegovy, stating that these medicines are lowering the financial burden of obesity-related well being points.

Latest developments in anti-obesity medicines have demonstrated the potential to forestall Sort 2 diabetes and scale back cardiovascular-related mortality by as much as 20%.

Nevertheless, the steep price of those medicines—typically as excessive as $1,000 monthly with out insurance coverage—locations them past attain for a lot of People.

The proposed rule seeks to make these therapies extra accessible, benefiting an estimated 3.4 million Medicare recipients and 4 million Medicaid enrollees. For some, the expanded protection may reduce out-of-pocket bills by as much as 95%.

The Division of Well being and Human Companies (HHS) highlighted the disparity between U.S. and worldwide drug costs, with People paying considerably extra for anti-obesity medicines.

The proposed growth aligns with broader efforts to decrease drug prices by means of negotiations and elevated competitors, aiming to make sure life-saving therapies are inexpensive and accessible.

In response to some analysts, Novo Nordisk’s blockbuster diabetes drug Ozempic is perhaps included within the subsequent spherical of Medicare drug worth negotiations.

Most lately, Novo Nordisk mentioned it can formally launch its weight-loss drug Wegovy in China. A four-injection pack prices round $194 (CNY 1,400) in comparison with round $1,349 per affected person monthly within the U.S.

Within the third quarter, Wegovy gross sales reached 17.30 billion Danish kroner, up 81%, and Ozempic gross sales elevated 26% at fixed foreign money to 29.80 billion Danish kroner.

“The gross sales progress is pushed by growing demand for our GLP-1-based diabetes and weight problems therapies,” Jørgensen mentioned.

As per a report in August, a number of older People are having little success getting prescriptions for Wegovy, coated by Medicare, regardless of the federal healthcare program’s determination to pay for sufferers with weight problems vulnerable to coronary heart illness.

Worth Motion: NVO inventory is up 1.7% at $106.41 ultimately examine Tuesday.

The shares of a number of pharmaceutical corporations concerned in creating or advertising weight-loss medicines confirmed combined efficiency as of Tuesday’s publication.

1. Eli Lilly and Firm LLY was up 3.9% to $785.49.
2. Amgen Inc. AMGN was down 11.4% to $260.84.
3. Pfizer Inc. PFE was down 1.3% to $25.81.
4. Viking Therapeutics Inc. VKTX was up 5.2% to $54.74.

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