Novo Nordisk and Lilly's GLP-1 diabetes drug prices were raised in the United States.
On January 18, local time, it was reported that many pharmaceutical enterprises had increased the sales prices of 775 brand drugs in the United States in the first half of January 2024, including Novo Nordisk Ozempic (English trade name of Smeaglutide for diabetes indications) and Lilly Mounjaro (English trade name of Tirzepatide for diabetes indications).
Ozempic and Mounjaro are approved for type 2 diabetes. However, due to the potential of GLP-1 drugs in weight loss, some people choose to buy these drugs for weight loss.
Regarding the magnitude of drug price hikes, the report cites an analysis by a non-profit drug pricing analysis agency, stating that the median increase is 4.5%, with some drugs experiencing price increases of about 10% or even higher. The median increase in drug prices is higher than the inflation rate. Specifically for the GLP-1 drug, the price of Ozempic has increased by 3.5%, resulting in patients spending nearly $970 per month on the drug. Mounjaro has risen by 4.5%, with monthly expenses rising to nearly $1070.
Regarding the reasons for the price increase, Novo Nordisk stated that the changes in sales prices have taken into account factors such as market conditions and inflation. Since 2016, the company's drug prices in the United States have never increased by more than single digits. Lilly stated that the company sets prices based on the value, efficacy, and safety of the drugs.
The reporter from Pengpai News learned that Lilly's Tirzepatide has not yet been approved in China and there is no pricing information available. Novo Nordisk's Smeglutide diabetes indication was approved for listing in China in April 2021, with the trade name of Novo Nordisk, and then entered the national medical insurance catalog in 2022. Smeaglutide also appears in the negotiated drugs in the 2023 national medical insurance catalogue, and the indications included in the medical insurance are type 2 diabetes.
So, will the price increase of Smegglutide in the US market affect the price in the Chinese market? On January 19th, a reporter from Pengpai News contacted the Chinese side of Novo Nordisk, but as of press release, there has been no response on this issue.
It should be noted that the above-mentioned price increase behavior is not limited to GLP-1 drug manufacturers, such as Eliquis, an oral anticoagulant drug jointly developed by Bristol Myers Squibb and Pfizer, which has also increased the price of the drug by 6% this month, with a current monthly cost of $594; The star single product Dupixent, which Sanofi collaborates with Regency to treat atopic dermatitis, has also increased by 6%, with monthly treatment costs reaching approximately $3800.
In the United States, pharmaceutical companies usually raise product prices in the weeks leading up to the New Year, and similar situations may occur in the coming weeks. Although some companies claim that price changes will not affect patients' access to medication, price hikes have still angered doctors and patients.
Interestingly, on one hand, there are pharmaceutical companies raising prices, and on the other hand, there are bargaining plans.
In August 2023, the official website of the Centers for Medicare and Medicaid Services (CMS) released a statement stating that the 10 prescription drugs covered by Medicare Part D were included in the first batch of Medicare drug price negotiation lists, including Eliquis, which involved more than ten pharmaceutical companies such as Pfizer, Novo Nordisk, and AstraZeneca.
After the announcement of the US version of the "healthcare negotiation" plan, various pharmaceutical companies did not accept it and decided to sue. However, in October, the pharmaceutical companies still agreed to participate. According to the guidelines of the Federal Medical Insurance Drug Price Negotiation Program released by CMS at the time, the first round of negotiations will take place in 2023 and 2024, and the resulting prices will take effect in 2026.