Hoosier State Today

U.S. Senator Mike Braun questioned Novo Nordisk CEO Lars Fruergaard Jørgensen at the Senate Health, Education, Labor and Pensions Committee hearing on Tuesday regarding the high prices of the company's weight loss drug, Ozempic, in the United States.

“This has everything to do with a system that’s broken with no transparency, no competition, barriers to entry, and by the way a consumer who doesn’t have the tools to really measure what the best value is,” said Sen. Mike Braun.

In a partial transcript of Senator Braun’s questions:

Braun asked: “Are you making a profit on your Ozempic product when you’re selling it to Australia for $87 and you’re selling to the U.S. for $936? Are you making a profit at $87?”

Jørgensen responded: “Yes, we are and the price you mentioned in the U.S. is not what we get. That’s the list price.”

Braun continued: “So what are you getting in the U.S.? What price?”

Jørgensen replied: “So I mentioned that on average for our products we give 74% in rebates to PBMs.”

Braun noted: “And that was the chart that Senator Marshall held up that PBMs are making 74% and you’re getting 26%. So, you’ve got a screwed-up industry. Number one, when I’ve talked to other pharma folks, they regret that PBMs ever came into it. It would seem like since you make the product, that you could disassemble them or do something to go around it if in fact this place won’t do something about it. Have you ever thought of that?”

Jørgensen explained: “It’s very difficult Senator because they control what insurance is put in front of patients so they have integrated themselves with insurance companies and we negotiate against the PBMs, but they’re owned by the insurance companies so no matter what we do, they decide what products—”

Braun interjected: “Okay- and that’s kind of the conundrum, but you’re making a profit at $87 and of the $936, it would be the list price? Is that total being split between you and the PBM? I know you give big discounts to the PBM. Why do give them such large discounts for them to make that much money?”

Jørgensen stated: “On this we have a high list price and give them rebates; we are not making it onto the insurance formulary. So, they make a fee based on the list price; you mentioned distribution; they don’t get a flat fee for distribution.”

Braun asked further: “So after you give discounts and do everything else, what is your revenue on Ozempic roughly?”

Jørgensen admitted: “I don’t have that number from top of my head.”

Braun concluded: “That is something that ought to be on top of your head because most of us would want to see that so you could make case against PBMs. That basic lack of transparency comes from top; cloaks system generally impacting future why our own country is 18% GDP while Canada Europe 12%, Eastern Europe 6-7%. Yes rationing maybe result but should never cost much more here versus there when making profit on it. Until figure out everyone think industry screwed up.”

Senator Braun leads efforts in Senate reforming PBMs lowering drug prices through transparency.