U.S. Senator Sanders says pharmacy middlemen commit to expanding weight-loss drug coverage if prices cut

By Ahmed Aboulenein and Patrick Wingrove

WASHINGTON (Reuters) - U.S. Senator Bernie Sanders said on Tuesday he had received commitments from all major pharmacy benefit managers they would expand coverage of Novo Nordisk (NYSE:NVO )'s popular diabetes and weight-loss medicines if the company lowered their list prices.

Sanders said he received the commitments in writing during his opening remarks at a hearing of the Senate Committee on Health, Education, Labor and Pensions (HELP), which he chairs, on why the company charges Americans more for the lifesaving drugs than any other country.

"I am delighted to announce today that I have received commitments in writing from all of the major PBMs that if Novo Nordisk substantially reduced the list price for Ozempic and Wegovy, they would not limit coverage. In fact, all of them told me they would be able to expand coverage for these drugs if the list price was reduced," Sanders said.

The announcement counters one of the most common talking points pharmaceutical companies cite when they argue against reducing list prices of their drugs, which is that cuts would lead to narrower coverage because pharmacy middlemen known as PBMs are incentivized to include expensive drugs on formularies because they lead to larger rebates.

Sanders strongly criticized Novo Nordisk CEO Lars Jorgensen, the sole witness at the hearing, over the high prices of Ozempic and Wegovy which can cost Americans more than $1,000 a month.

Semaglutide, a drug in the GLP-1 class that is marketed as Wegovy for weight loss and Ozempic for type-2 diabetes, has been shown to help patients lose an average of 15% of their weight.

Ozempic and Wegovy carry U.S list prices of $935.77 and $1,349.02, respectively, for a month's supply, which Sanders has previously argued is far higher than the respective $59 and $92 price tags they carry in some European countries. 



Jorgensen said that type-2 diabetes costs the United States around $413 billion every year, while obesity costs $1.7 trillion annually, according to prepared remarks seen by Reuters.

He also said patients often struggle to navigate the U.S. healthcare system, and that Novo will work with HELP "to address structural issues that harm patients and drive up costs".

Source: Investing.com