A competitive drug market strongly encourages companies to best their rivals by developing the next generation of life-saving therapies. And as Novo and Lilly are proving, it can also save patients money.
Novo Nordisk just announced price cuts for Ozempic and Wegovy, whose list prices as recently as last year were around $1,000 a month. Patients buying directly from the manufacturer will be able to pay as little as $349 for a monthly dose of these medicines. The company has also dropped prices for new direct-pay customers to just $199 for the first two months.
Why slash prices on blockbuster drugs? One word: competition. Its biggest rival in the GLP-1 market, Eli Lilly, has been seizing market share. Novo is looking to win customers back. Cutting prices is the most obvious way to achieve that goal.
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.
Competition, not price controls, just slashed GLP-1 prices
Sally C. Pipes
A competitive drug market strongly encourages companies to best their rivals by developing the next generation of life-saving therapies. And as Novo and Lilly are proving, it can also save patients money.
Novo Nordisk just announced price cuts for Ozempic and Wegovy, whose list prices as recently as last year were around $1,000 a month. Patients buying directly from the manufacturer will be able to pay as little as $349 for a monthly dose of these medicines. The company has also dropped prices for new direct-pay customers to just $199 for the first two months.
Why slash prices on blockbuster drugs? One word: competition. Its biggest rival in the GLP-1 market, Eli Lilly, has been seizing market share. Novo is looking to win customers back. Cutting prices is the most obvious way to achieve that goal.
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.