The soaring popularity of the diabetes drug Ozempic, made by Novo Nordisk, has had a significant impact on public healthcare spending in Denmark. The Danish Medicines Agency has taken the following steps to manage costs:
- Subsidy Cuts: The agency has decided to limit subsidies for Ozempic and similar GLP-1 medications, only covering patients who cannot be treated with cheaper diabetes medications. The agency expects this change to shift approximately half of current GLP-1 users to less expensive alternatives.
- Cost Savings: The price of Ozempic in Denmark has been reduced from $188 to $125, which is expected to save the government over $70 million annually. In 2023, Denmark’s government spent approximately $200 million on Ozempic, representing about 8% of the country’s total medicine costs.
- Global Attention: The cost reduction has drawn international attention, with U.S. Senator Bernie Sanders urging Novo Nordisk to similarly reduce the price of Ozempic in the United States. The price in the U.S. is $969, compared to significantly lower prices in countries like Canada and Germany.
- Investigation: Senator Sanders has launched an investigation through the Senate Committee on Health, Education, Labor, and Pensions into the pricing of Novo Nordisk’s diabetes and weight-loss drugs, criticizing the stark difference in pricing between the U.S. and other countries.
The changes in Denmark highlight the global challenge of balancing the need for effective medications with the rising costs of healthcare and the significant disparities in drug pricing across different regions.