Novo Nordisk to Cut U.S. List Prices for Ozempic, Wegovy by Up to 50%
The reductions will take effect next January
- Novo Nordisk plans to cut U.S. list prices for Wegovy and Ozempic by up to half, effective Jan. 1, 2027.
- The price reductions aim to lower patient out-of-pocket costs and will escalate a price war with rival Eli Lilly.
- Both Ozempic and Wegovy will list for $675 a month, coinciding with new Medicare prices of $274 for a 30-day supply.
Novo Nordisk NOVO.B -2.92%decrease; red down pointing triangle plans to slash U.S. list prices for its popular weight-loss and diabetes drugs Wegovy and Ozempic by up to half starting next year.
Under the changes, both Ozempic and Wegovy will list for $675 a month, effective Jan. 1, 2027. That is half of the current price tag for anti-obesity therapy Wegovy and a 34% cut for diabetes treatment Ozempic. The price cuts also will apply to pill versions of both injections, including one sold as Rybelsus.
The reductions escalate a price war with archrival Eli Lilly LLY 4.86%increase; green up pointing triangle in one of the fastest-growing, most hotly contested categories in pharmaceuticals.
Millions of patients are taking the so-called GLP-1 drugs, but price tags have deterred other potential customers either because their health plans aren’t covering the medicines or the out-of-pocket costs set by their plans are too high.
Novo Nordisk is cutting its drugs’ list prices for the first time, executives said, especially to reduce high out-of-pocket costs for patients who are enrolled in high-deductible health plans or pay coinsurance that is a percentage of list price.
“Our hope is that reduced prices will lead to better access and affordability,” Jamey Millar, Novo Nordisk’s executive vice president of U.S. operations, said in an interview.
The global market for GLP-1 drugs used for weight loss and diabetes is roughly $72 billion and expected to rise to about $139 billion in 2030, TD Cowen estimated.
The Danish drugmaker took an early lead over Eli Lilly, but Lilly is now the leader. Novo Nordisk, which recently launched the first pill version of a GLP-1 approved for weight loss, has been seeking to regain its advantage.
Both companies have tried to make it easier for potential customers to get the drugs, offering their medicines directly for sale through websites.
They have also sought to compete on price. Novo Nordisk and Lilly have been cutting net prices for popular GLP-1 weight-loss drugs by offering discounts to insurers and consumers, including through recent deals with the Trump administration.
For patients who are paying for prescriptions outside insurance, Novo Nordisk slashed cash prices to a range of $149 to $499 a month depending on the drug and dosage.
Meanwhile, Lilly sells its competing weight-loss drug Zepbound at cash prices ranging from $299 to $449, discounted off a list price of more than $1,000 a month.
Novo Nordisk’s list-price cuts won’t change its discounted prices, which are also available via a new government site, TrumpRx.
The January 2027 effective date of Novo Nordisk’s list-price cuts will coincide with the implementation of new, lower prices for the same drugs in the federal Medicare health-insurance program for the elderly.
The Medicare prices for Ozempic and Wegovy starting in January 2027 will be $274 for a 30-day supply. The Medicare prices resulted from negotiations last year between the Medicare agency and Novo Nordisk.