Pharmaceutical company Novo Nordisk to offer weight-loss medication priced at $499 for eligible buyers
In a move to lower drug prices in the U.S., President Trump signed an executive order with the intent of aligning U.S. prices with those in other developed countries. This policy, known as the "Most Favored Nation" pricing policy, has prompted significant changes in the pricing strategies of major pharmaceutical companies.
One such company, Eli Lilly, has responded by raising prices in Europe and other developed markets for its dual-use diabetes and weight loss drug, Mounjaro, to provide room to lower prices in the U.S. The drug, known as Zepbound in the U.S., retails for about $1,000 per month, still much higher than the new European prices despite the policy push.
Meanwhile, Novo Nordisk has taken a different approach. The company has offered its weight-loss drug Wegovy, which is prescribed primarily for obese patients, at a reduced price of $499 per month for eligible customers in the U.S. This offer will be available through GoodRx, a telehealth service with which Novo Nordisk has partnered for the first time. Novo Nordisk is also offering its diabetes drug Ozempic, prescribed to patients with type 2 diabetes, for the same price to eligible cash-paying type 2 diabetes patients in the U.S.
The partnership between Novo Nordisk and GoodRx resulted in GoodRx's stock price soaring nearly 30% following the announcement. However, GoodRx's stock experienced a decrease in price after the announcement, contrary to its initial increase.
As of the article's publication, Eli Lilly's stock (LLY) is trading at $695.84, down 1.11%, and Novo Nordisk's stock (NVO) is trading at $54.43, down 0.68%.
This complex pricing dynamic is a result of the Trump administration's executive order, which has yet to achieve large-scale, dramatic price reductions in the U.S. The policy has incentivized pharmaceutical companies to raise prices abroad to maintain revenue while attempting to modestly reduce prices in the U.S.
The article was contributed to by FOX Business' Daniella Genovese.
References: 1. The Hill 2. Bloomberg 3. Kaiser Health News 4. Reuters 5. CNBC
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