A uncommon situation unites People throughout the political divide: the nation’s damaged healthcare system, which is slowly killing its residents. The disaster has even bridged the hole between unlikely allies: MAGA proponent and billionaire Elon Musk and Vermont Senator Bernie Sanders.
Sanders, a champion of Europe’s social market mannequin, just lately joined President Biden in urging Danish drugmaker Novo Nordisk to slash the costs of its in style remedies.
The shortcoming to offer reasonably priced entry to life-saving medication, notably for diet-induced diabetes and weight problems, claims greater than 43,000 lives yearly—deaths that might be prevented if the costs of medicines like Ozempic and Wegovy have been decrease.
“Solving obesity greatly reduces [the] risk of other diseases, especially diabetes, and improves quality of life. We do need to find a way to make appetite inhibitors available to anyone who wants them,” Sanders stated on Tuesday, quoting the Tesla CEO from earlier this month. “And Mr. Musk is right.”
The centibillionaire has repeatedly clashed with the senator over revenue inequality, with Musk as soon as posting how he retains forgetting Sanders isn’t lifeless but. Nevertheless it’s laborious to combat with somebody who agrees with you.
Musk himself has waged a continuing battle with the size, having been fat-shamed by his very personal father earlier than opting to take Novo Nordisk’s Wegovy to assist slim down chemically.
“I really am with Bernie on this one,” Musk posted on Tuesday.
74 cents of each greenback in gross sales goes to middlemen
Sanders was talking at a subcommittee listening to that referred to as Novo Nordisk CEO Lars Fruergaard Jørgensen as a witness. By the senator’s estimate, Jørgensen is charging U.S. sufferers 9 instances what they cost German friends internet of record value rebates.
Practically three-quarters of the income Novo Nordisk has generated from the $50 billion in complete gross sales because the 2018 launch of its so-called GLP-1 drug semaglutide (marketed below the model identify Ozempic and Wegovy) comes from the U.S. market, a determine Jørgensen didn’t dispute.
“The United States is Novo Nordisk’s cash cow for Ozempic and Wegovy,” Sanders stated. “All we are saying, Mr. Jørgensen, is treat the American people the same way that you treat people all over the world—stop ripping us off.”
Jørgensen stated his firm is investing $30 billion to broaden manufacturing and decrease the drug’s price.
As a substitute, he blamed pharmacy profit managers (PBMs), the middlemen who negotiate costs with prospects in a U.S. healthcare system that’s incentivized to maintain prices up on the expense of affected person outcomes.
“They get a fee based on list price—so the higher list price, the more fee they get for the same job,” he stated, including, on common, 74 cents of every greenback income Novo Nordisk makes within the U.S. leads to the pockets of PBMs and insurers.
“In our experience, products that come with a low list price get less coverage. It’s less attractive.”
When Sanders countered that he had secured a written dedication from three main PBMs that they’d not decrease or drop protection of Novo Nordisk medication if the corporate reduce its record costs, the CEO was skeptical.
“That’s new information for me.” Jørgensen replied. “I don’t know under which conditions such a promise comes. I haven’t seen any of that.”
When contacted by Fortune for remark, a spokesman for Novo Nordisk reiterated his CEO’s remark that no single firm can repair the American healthcare system alone.
Nonetheless, it appeared ahead to persevering with to work with policymakers towards “meaningful solutions” for sufferers counting on its medicines.
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