What the Maker of Ozempic Doesn't Want You to Know: It's Bankrupting America

Summary

The transcript discusses the high costs of weight loss drugs like Ozempic and Wegovy in the U.S., driven by Novo Nordisk's monopoly. It explores the potential health benefits of these drugs, including anti-cancer properties, and the financial burden they place on states like North Carolina. The script also touches on the manufacturing costs, which are significantly lower than the list prices, and considers potential solutions such as government negotiations and patent licensing to make these drugs more affordable.

Takeaways

• 💊 The U.S. is facing a significant fiscal crisis due to the high cost of revolutionary weight loss and health drugs like Ozempic and Wegovy.
• 🌎 These drugs have potential benefits beyond weight loss, including cardiovascular and possibly anti-cancer effects, but are priced much higher in the U.S. compared to other countries.
• 💸 The cost of these drugs could bankrupt Medicare if widespread use continues, with estimates suggesting an annual cost of $411 billion for half of U.S. adults with obesity.
• 🏢 Novo Nordisk, the company behind these drugs, has become extremely valuable, with profits soaring from $4 billion to over $12 billion in a decade.
• 🤝 The high cost of these drugs has led to an unlikely alliance of politicians and advocates trying to make them more accessible and affordable.
• 💸 North Carolina's State Treasurer has had to make tough decisions due to the high cost of these drugs, leading to the state dropping coverage for them.
• 💼 Health economist Melissa Barber's research indicates that the drugs can be manufactured for a fraction of what they're sold for, with estimates as low as $0.89 per month.
• 🔍 The public is at a disadvantage in drug price negotiations due to lack of transparency on manufacturing costs and profits.
• 🇺🇸 The U.S. government has the power to authorize generic competition under certain conditions, which could potentially lower drug prices.
• 💡 The Biden administration has taken steps to allow Medicare to negotiate drug prices, which could lead to lower costs for some medications in the future.

Q & A

What is the looming fiscal crisis in America mentioned in the script?

The looming fiscal crisis in America is the high cost of weight loss and diabetes drugs, such as Ozempic and Wegovy, which threatens to destabilize Medicare and other health programs due to their exorbitant prices.

What are the potential health benefits of Ozempic and Wegovy mentioned in the script?

The script mentions that Ozempic and Wegovy, besides being weight loss drugs, may have cardiovascular benefits, mental health benefits, and potentially anti-cancer benefits.

How does the price of Ozempic differ between the U.S. and other countries?

The script illustrates that the price of Ozempic varies significantly, with the U.S. having a much higher cost compared to the U.K. and Denmark, where the manufacturer Novo Nordisk is headquartered.

What is the potential annual cost if half of the U.S. adults with obesity took weight loss drugs like Wegovy?

If half of the U.S. adults with obesity took weight loss drugs like Wegovy, it would cost the country $411 billion every year, which is $5 billion more than what Americans spent on all prescription drugs at the pharmacy counter in 2022.

How has Novo Nordisk benefited from the high prices of its drugs?

Novo Nordisk has seen a significant increase in its value and profits due to the high prices of its drugs. Ten years ago, it had $4 billion in profit, and last year, it made over $12 billion.

Why did North Carolina drop coverage for Ozempic and similar drugs?

North Carolina dropped coverage for Ozempic and similar drugs due to the financial strain caused by their high costs, which were seen as price gouging and unsustainable for the state's health plan.

What is the estimated manufacturing cost of Ozempic according to Melissa Barber's research?

Melissa Barber's research estimated that the manufacturing cost of Ozempic could be as low as $0.89 per month with a 10% profit margin, or just under $5 with a 50% profit margin.

What is the significance of the Inflation Reduction Act for drug pricing in the U.S.?

The Inflation Reduction Act allows Medicare to negotiate the price of a select few drugs each year, which could potentially lower costs for certain medications, including Ozempic, once it meets the seven-year market requirement.

What is the role of section 1498 in drug pricing and how could it be used?

Section 1498 allows the U.S. government to authorize affordable generic competition for expensive patented products by paying a reasonable royalty to the patent holder, potentially bypassing the need for the patent holder's consent.

What did the script suggest as a solution to the high cost of drugs like Ozempic?

The script suggests that the federal government should negotiate with Novo Nordisk to open up patents to generic manufacturers, which would increase drug access and lower prices through competition.

How does the script frame the public's position on drug pricing?

The script frames the public as being 'wildly disadvantaged' in drug price negotiations due to the lack of transparency in real costs, and it suggests that studies like Melissa Barber's can help level the playing field.