Biden Urges Price Cuts on Ozempic, Other GLP-1 Drugs

President Joe Biden has demanded Ozempic’s manufacturer, Novo Nordisk, to lower the price of the popular weight loss drug.

In an op-ed written for USA Today alongside Sen. Bernie Sanders, the Democratic president has called upon Novo Nordisk — which also manufactures Wegovy — and Eli Lilly, which manufactures Mounjaro, to lead the charge in lowering their retail prices.

“Novo Nordisk is charging the American people unconscionably high prices for these prescription drugs,” Biden wrote. “If your doctor prescribes you a GLP-1, the prices of Ozempic and Wegovy can be up to six times higher than prices in Canada, Germany, Denmark, and other major countries. That’s unacceptable.”

Biden also questioned why residents of Burlington, Vermont — part of Sanders’ jurisdiction — paid more for Ozempic and similar GLP-1 drugs than residents of other countries where the drug isn’t manufactured. He also pointed out that the steep drug prices weren’t due to the cost of the manufacturing of the drug, but the profit margins enjoyed by the pharmaceutical executives.

“In 2023, for example, Novo Nordisk made over $12 billion in profits, in part by charging Americans over $1,000 a month for a prescription drug that can be profitably manufactured for less than $5,” he wrote. “That is not making a reasonable return on investment. That is price gouging. That is corporate greed.”

Biden’s op-ed comes less than a week after Novo Nordisk announced that it would build a $4.1 billion warehouse in North Carolina to keep up with the rising demands for Ozempic.

The facility is specifically made to fill injectable pens that provide consumers GLP-1 medication. The warehouse, to be built in Clayton, North Carolina, is anticipated to be finished by 2029 at the latest, adding 1,000 jobs to the 2,500 the company employs. Some experts predict that by the 2030s, product sales might reach approximately $150 billion.

In order to meet the growing demand, Novo Nordisk had previously stated that it intended to construct warehouses in the U.S. and Europe.

Senior Vice President Negelle Morris, who oversees cardiometabolic sales for Novo Nordisk in the United States, discussed the issue of growing demand with Good Morning America. Morris stated that even with the company’s financial commitment to these medications, there would probably still be delays in the distribution of the highly sought-after therapies.

“It’s not like a light switch,” she explained. “The strategy is to be very mindful and thoughtful about the amount of the lower doses that we’re putting into the market, and I think that over time, the investments that we’re making in manufacturing capabilities will ensure that over time we’re able to meet that demand.”