Price controls short circuit these natural processes—and destroy the incentive for companies to invest in developing newer, better products.
Prices for GLP-1 weight-loss medications are dropping fast.
Last week, Novo Nordisk—maker of Ozempic and Wegovy—announced it would cut prices for monthly supplies of both drugs to as low as $349 for existing patients buying directly. For new customers, the price will fall to just $199 a month for the first two months. The move follows similar price cuts by competitor Eli Lilly.
These blockbuster medicines recently carried price tags exceeding $1,000 a month. What happened?
Simply put, market forces worked. Novo and Lilly are competing fiercely for customers. That competition is leading to lower prices, better value, and a more efficient, functional market. And it’s delivering those things much more quickly than the government could ever hope to.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
A Healthy Dose Of Competition Sends Weight-Loss Drug Prices Plummeting
Sally C. Pipes
Price controls short circuit these natural processes—and destroy the incentive for companies to invest in developing newer, better products.
Prices for GLP-1 weight-loss medications are dropping fast.
Last week, Novo Nordisk—maker of Ozempic and Wegovy—announced it would cut prices for monthly supplies of both drugs to as low as $349 for existing patients buying directly. For new customers, the price will fall to just $199 a month for the first two months. The move follows similar price cuts by competitor Eli Lilly.
These blockbuster medicines recently carried price tags exceeding $1,000 a month. What happened?
Simply put, market forces worked. Novo and Lilly are competing fiercely for customers. That competition is leading to lower prices, better value, and a more efficient, functional market. And it’s delivering those things much more quickly than the government could ever hope to.
Read the entire op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.