Biden and Sanders op-ed names Lilly and Novo Nordisk over GLP-1 prices

President Joe Biden and Sen. Bernie Sanders published a joint op-ed on July 2, 2024, that called out Eli Lilly and Novo Nordisk by name over the prices of their GLP-1 drugs and warned that the companies should cut those prices or face consequences ^[1].

The piece, published in USA Today, said Eli Lilly was charging "unconscionably high prices" for Mounjaro, which it said costs roughly $1,100 a month ^[1]. It described Mounjaro as "a drug with similar health effects as Ozempic" ^[1]. For Novo Nordisk, the authors wrote that Ozempic and Wegovy can cost "up to several times higher" in the United States than in Canada, Germany, Denmark and other major countries ^[1].

The closing warning was blunt: "If Novo Nordisk and other pharmaceutical companies refuse to substantially lower prescription drug prices in our country and end their greed, we will do everything within our power to end it for them" ^[1]. The op-ed states that "Novo Nordisk must substantially reduce the price of Ozempic and Wegovy" ^[1]. It does not name a specific penalty or action the administration would take if the prices stay where they are ^[1].

The op-ed cited a March study from Yale University researchers that found these drugs could be profitably manufactured for less than $5 a month, or $57 a year ^[1]. It said Novo Nordisk made over $12 billion in profits in 2023, "in part by charging Americans over $1,000 a month" for a drug it says can be made for under $5 ^[1]. It also said 10 top pharmaceutical companies made over $110 billion in profits last year ^[1].

Budget math was part of the argument. If half of adults with obesity took Wegovy and other new weight loss drugs, the op-ed said the cost could reach $411 billion a year, which it called $5 billion more than what Americans spent on all prescription drugs at the pharmacy counter in 2022 ^[1]. If half of Medicare and Medicaid beneficiaries who are obese took those drugs, the two programs could spend $166 billion a year, rivaling what they spent on all retail prescription drugs in 2022 ^[1]. The authors wrote that the prices could "bankrupt the American health care system" if they are not substantially reduced ^[1].

Why it matters for patients

The op-ed does not announce a price cut. It does not say that list prices for Ozempic, Wegovy or Mounjaro will change, and it does not include a response from either company ^[1]. What an individual patient pays still depends on insurance coverage, deductibles and any discount programs, none of which the op-ed describes ^[1].

The authors point to Medicare changes that are already in place or coming. Seniors with diabetes pay no more than $35 a month for insulin, and starting in January, no senior will pay over $2,000 a year for prescription drugs ^[1]. For the first time, Medicare is negotiating prices with drugmakers on some of the most expensive drugs ^[1]. The op-ed describes these as protections for seniors and does not describe a comparable cap for people on commercial insurance or with no coverage ^[1]. The authors write that "no one in our country should be forced to pay over $2,000 a year for the prescription drugs they need, not just seniors," which they present as a goal, not current policy ^[1].

What happens next

Biden and Sanders say they are working together on legislation to expand the number of prescription drugs subject to Medicare price negotiation to at least 50 a year, and they say they want every member of Congress to support it ^[1]. No timeline for that bill is given ^[1].

Whether Novo Nordisk or Eli Lilly lowers prices in response, and how the two companies answer the op-ed's criticism, has not been reported ^[1].