In a significant move aimed at increasing access to its popular medications, Novo Nordisk announced plans to substantially lower the list prices of Wegovy, Ozempic, and Rybelsus in the United States. Starting January 1, 2027, all three drugs – used for both weight management and type 2 diabetes – will be priced at $675 per month, a reduction of up to 50% for Wegovy and 35% for Ozempic, according to the company’s statement.
The price cuts represent a strategic shift by Novo Nordisk to address affordability concerns, particularly for patients with insurance plans that base out-of-pocket costs on list prices. This change comes as demand for GLP-1 medications, a class of drugs that includes Wegovy, Ozempic, and Rybelsus, continues to surge, with approximately 15.5 million U.S. Adults having used injectable Type 2 diabetes medications for weight loss in 2024, according to a Gallup poll.
The decision to lower list prices is expected to benefit individuals with high-deductible health plans or coinsurance benefit designs, who are directly impacted by the medications’ list prices. “Private and public payers, as well as patients, want access and have been calling for lower list prices,” said Jamey Millar, Novo Nordisk’s executive vice president of U.S. Operations, in a statement. “Our actions today answer that call and remove cost barriers so the value of Wegovy and Ozempic can be realized by more patients.”
Understanding the Impact on Costs
Currently, Wegovy lists for around $1,349 per month, while Ozempic and Rybelsus are priced at approximately $1,028 and $998 respectively, according to the telehealth provider Ro.co. The new $675 monthly price will apply to all dosages of each medication. It’s important to note that these list price reductions will not directly impact the prices paid by consumers outside of insurance coverage.
The move by Novo Nordisk as well comes amid increasing competition in the GLP-1 market. Eli Lilly, a major competitor, offers Zepbound and Mounjaro, which currently list for $1,086 and $1,069 respectively, according to Ro.co. Several other pharmaceutical companies, including Pfizer, Roche, Amgen, and AstraZeneca, are also developing GLP-1 medications, with anticipated market entry between 2027 and 2032, potentially driving further price adjustments, according to CNBC.
GLP-1s and the Obesity Epidemic
GLP-1 receptor agonists work by mimicking the effects of the naturally occurring hormone glucagon-like peptide-1 (GLP-1), which helps regulate blood sugar levels and suppress appetite. These medications are approved for treating type 2 diabetes and, in the case of Wegovy, for chronic weight management. According to the U.S. Centers for Disease Control and Prevention, approximately 42% of adults in the United States are obese, a condition often linked to serious chronic diseases like diabetes and heart disease.
Novo Nordisk’s decision also follows the company’s agreement last year to participate in the Trump administration’s most-favored-nation drug-pricing policy, which aims to lower prescription drug costs to levels comparable to those in other developed countries. Under this agreement, Novo Nordisk and Eli Lilly committed to providing state Medicaid programs with most-favored-nation prices for all new medications they bring to market.
The market for GLP-1 drugs has experienced substantial growth in recent years. Since 2019, the use of these treatments for non-diabetic purposes has increased by 700%, and Morningstar Equity Research projects the market will reach $180 billion by 2034.
Disclaimer: This article provides informational content and should not be considered medical advice. Please consult with a qualified healthcare professional for personalized guidance on treatment options and health concerns.
The long-term effects of these price reductions on market dynamics and patient access remain to be seen. However, this move by Novo Nordisk signals a growing recognition of the need to address the affordability of these increasingly important medications. Further developments in the GLP-1 market, including the entry of new competitors and evolving insurance coverage policies, will likely shape the future landscape of obesity and diabetes care. Share your thoughts on this news in the comments below.
