Affordable Diabetes Drug Priced at $5 Overseas Costs Americans $1,000, sparking Comparisons to Martin Shkreli and Generating Massive Profits for Pharmaceutical Company.

Affordable Diabetes Drug Priced at  Overseas Costs Americans ,000, sparking Comparisons to Martin Shkreli and Generating Massive Profits for Pharmaceutical Company.

The stock of the Danish drug manufacturer Novo Nordisk (NYSE:NGO) is growing, up more than 400% in the last five years. Its success is such that its market capitalization of almost $500 billion exceeds the entire gross domestic product (GDP) of Denmark, where the company is based.

Novo Nordisk owes much of its success to its blockbuster drug Ozempic, prescribed for patients with type 2 diabetes, and its related drug Wegovy, prescribed for weight loss. Ozempic generated more than $13 billion in revenue last year for the company, with 66% coming from the U.S. market.

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Its profits come largely from the extremely high margins made on the drug, sparking debate over whether they are excessive.

Melissa Barbierpublic health economist at Yale University, said that “the markup is insane” and that “there should be a political debate about what a fair price is.”

Yale researchers found that Ozempic could be manufactured at a cost ranging from 89 cents to $4.73 for a month’s supply, even though the drug costs patients $968.52 per month in the United States without insurance.

A post on the tech subreddit titled “Drug companies have raised the price of 775 drugs this year so far, including Ozempic and Mounjaro – exceeding the rate of inflation” has sparked a lot of discussion, with one Reddit user commenting that “(Drug companies) did this forever, and the only person who went to jail was Martin Shkreli. »

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Martin Shkreli, former head of Turing Pharmaceuticals, sparked bipartisan outrage when his company raised the price of a life-saving drug by more than 4,000 percent, with a federal court then permanently banning him from the pharmaceutical industry and forcing it to repay $64.6 million in profits. .

Politicians noticed the markup charged by Novo Nordisk.

“This outrageously high price tag risks bankrupting Medicare, the American people, and our entire health care system,” said U.S. Sen. Bernie Sanders (I-Vermont).

It remains to be seen whether political pressure on drugmakers will gain traction during the 2024 election cycle, but it’s worth noting that other countries don’t pay the same markup.

“The same product can be purchased for just $155 per month in Canada and just $59 in Germany,” Sanders said.

Even for patients with insurance who get the drug at a lower cost, someone is still paying the costs, adding even more to an already costly U.S. health care system.

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This item Diabetes drug made for less than $5 costs Americans $1,000, drawing comparisons to Martin Shrikeli while making profits for a drug giant originally appeared on Benzinga.com

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