Ozempic-maker Novo Nordisk has agreed to a deal that will cut the price of blockbuster weight-loss drugs for millions, but doctors are skeptical whether the increased affordability is actually a good thing for Americans.
The Denmark-based firm said Wednesday that it has agreed to lower the cost of semaglutide, the active ingredient in weight-loss drugs including Wegovy, under the Medicare scheme.
On Thursday, President Donald Trump announced the deal with Novo Nordisk and Eli Lilly, which makes Zepbound and Mounjaro, as part of the administration's plan to adopt 'most favored nations pricing,' meaning 'Americans should pay no more than the lowest price offered around the world.'
'It's a tremendous advantage to the American people.'
Trump said starting Thursday, Wegovy will be lowered from $1,350 a month to $250 per month before insurance, while Zepbound will go from $1,080 to $346 monthly.
He also noted future GLP-1 agonists in development will 'be sold at no more than $149 per month.'
Trump revealed Novo Nordisk and Eli Lilly will also provide 'all of their other medications' at most favored nations pricing. Many will also be covered by Medicare plans in all 50 states, which cover 60 million Americans over 65.
Trump said the move 'will save lives and improve the lives of millions.'
'This is a great day for American health,' he added. 'Americans deserve the best healthcare in the world, and we're now getting the best healthcare in the world.'
Health secretary Robert F Kennedy Jr estimated the move will help Americans lose an extra 125billion pounds by the end of next year, but it's unclear where that measurement comes from. CMS administrator Dr Mehmet Oz upped that estimate to 135million pounds.
Physicians speaking with the Daily Mail said while lowering the cost of Ozempic and Wegovy will likely improve obesity rates, users should be cautious about needing to take the drugs for long periods of time, as well as side effects.
Dr Stuart Fischer, an internal medicine physician in New York, told the Daily Mail: 'It will be good and bad. It's good because it helps with obesity and because obesity is one of the biggest crises in American health, and the repercussions are horrible.
'But it's bad because the weight loss is often not permanent,' he added, referencing rebounds patients often have if they stop taking the medication.
Recent figures suggest up to three in four GLP-1 users stop taking the drugs within the first year.
Dr Katy Dubinsky, pharmacist in New York City and CEO and founder of PostGigs, told the Daily Mail: 'I am excited for patients that Novo Nordisk is finally lowering the price of semaglutide. These medications have been game-changers for so long and inaccessible to the very populations that would benefit the most.
'If this reduction in list price gets to the pharmacy counter, I predict we will see more people starting these medications earlier and adhering to therapy, which is so critical to controlling blood sugars and avoiding diabetes complications.
'The downside is that affordability does not solve all issues. These are not short-term weight-loss drugs, and most people will likely take these medications for years if not the rest of their lives.'
Kennedy said Thursday that the drugs were not miracle cures but a tool for helping Americans lose weight, along with diet and exercise.
'This is not a silver bullet. It is an arrow in our quiver,' he said.
Medicare previously was able to cover Ozempic and Wegovy for diabetes and Zepbound for sleep apnea, but the coverage does not extend to weight loss.
In September, the Trump administration announced it had made a deal with pharmaceutical giant Pfizer to lower the cost of 'virtually Pfizer's entire portfolio of drugs.'
Officials said these drugs would be offered at lower prices on TrumpRx, which will be launched by the end of the year.
That plan will adopt 'most-favored-nation' drug pricing, which searches for the lowest available medication price in other developed nations and adopts it.
The TrumpRx site is not yet available.
Spokesmen for Novo Nordisk and Eli Lilly confirmed to the Washington Post that the companies were engaging in discussions with the administration but did not answer further questions.
The drug deal for Ozempic, Wegovy and other GLP-1 agonists is tied to a pilot program that is being developed by Medicare's innovation center, which would cap the cost of the medications for some Medicare beneficiaries, sources told the Washington Post.
Medicare beneficiaries in the US are over 65 years old, a population in which one in three are obese. Dr Fischer noted that this group may be less disciplined on a GLP-1 agonist due to a lifetime of poor lifestyle habits.
He said: 'This group is more likely to have ingrained bad habits and is much less likely to have a strict diet.'
While GLP-1s do improve obesity and conditions like diabetes, Dr Fischer warned lowering calories and regularly exercising is still necessary to benefit fully.
Eli Lilly said it is also planning to submit its in-development obesity drug orforglipron to a Trump administration program meant to fast-track drug approvals.
Trump officials said companies moving to lower their prices will receive priority vouchers to expedite FDA reviews when applying for federal drug approval.
Trump told reporters on October 16 in an announcement on lowering the costs of in vitro GLP-1 drugs: 'Instead of $1,300, you’ll be paying about $150.'
Mehmet Oz, head of the Centers for Medicare and Medicaid Services, however, noted that negotiations on GLP-1 drugs were not yet complete.
Dr Dubinsky warned that insurance coverage and prior authorizations 'will still be barriers for many, even with a reduced list price. And of course, there is a risk that demand will go through the roof and we will experience further shortages in care.
'All in all, this is an exciting development, but there needs to be appropriate prescribing and additional support for patients who will be on it long-term.'
