Shares of Eli Lilly and Novo Nordisk dropped Friday, aft President Donald Trump said his medication aims to chopped the outgo of marque sanction GLP-1 value nonaccomplishment drugs to $150 per month, a fraction of their existent database price.
"In London, you'd bargain a definite cause for $130 and adjacent little than that ... $88 arsenic of... a period ago. And successful New York, you wage $1,300 for the aforesaid thing," Trump said during a Thursday day lawsuit astir successful vitro fertilization astatine the White House. "Instead of $1,300 you'll beryllium paying astir $150 and they'll beryllium paying $150 truthful we're going to wage the aforesaid thing."
Asked by a newsman what cause helium was referring to, Trump replied, "I was referring to Ozempic oregon ... the abdominous nonaccomplishment drug."
At that point, Centers for Medicare and Medicaid Administrator Dr. Mehmet Oz interjected and stressed that the medication has not yet agreed to GLP-1 terms reductions with drugmakers.
"We person not negotiated those yet ... We're going to beryllium rolling these retired implicit time, the GLP class of drugs, which includes Ozempic person not been negotiated yet," Oz said.
Just a week ago, Oz had said that the medication was "in the mediate of a batch of action" with terms discussions with value nonaccomplishment drugmakers.
Eli Lilly shares closed 2% little Friday, portion Novo Nordisk's banal fell 3% successful U.S. trading. Meanwhile, shares of Hims & Hers Health — which sells overmuch cheaper compounded GLP-1s — plunged much than 15%.
Eli Lilly and Novo Nordisk were among 17 of the largest U.S. pharmaceutical companies that received letters from the Trump medication pursuing the president's enforcement bid connected alleged most-favored federation pricing, demanding that businesses bring U.S. cause prices successful enactment with those successful different developed nations.
Pfizer and AstraZeneca person signed connected to the president's initiative, striking cause pricing deals with the administration. But Trump and Oz's comments marque it wide the medication is looking to get the value nonaccomplishment drugmakers connected board.
$150 GLP-1 would beryllium cheaper than compounders
While request for value nonaccomplishment drugs has grown, terms has remained an obstacle for consumers and employers.
Only astir 1 successful 5 ample employers presently connection GLP-1s for value loss, according to a caller survey from the Kaiser Family Foundation. Of those who do, two-thirds accidental the precocious outgo drugs person had a "significant" interaction connected their medicine cause spending.
Workers who don't get sum done wellness security person progressively turned to the currency marketplace to bargain the drugs connected their own.
Eli Lilly and Novo Nordisk merchantability discounted versions of their diabetes and value nonaccomplishment medications connected their direct-to-consumer sites astatine astir $500 a month. Telehealth providers similar Hims & Hers connection compounded versions of GLP-1s for little than fractional that price, anyplace betwixt $130 to $200 per month.
If the medication could bring the currency terms for fashionable value nonaccomplishment drugs similar Lilly's Zepbound and Novo Nordisk's Wegovy down to $150, that would beryllium competitory with compounded options and could person a large interaction connected the existent currency market.
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