Generic Drug Firm Challenges Novo Nordisk's Ozempic with Under $100 Monthly Option, Disrupting $150 Billion Market

U.S. Senator Bernie Sanders announced on Tuesday that he has been assured by several major generic drug manufacturers that they are capable of producing a generic version of Novo Nordisk's diabetes medication, Ozempic, for under $100 per month. This announcement is particularly timely as Novo Nordisk CEO Lars Jorgensen is slated to testify next week before the Senate Health, Education, Labor and Pensions (HELP) Committee, which Sanders chairs. The upcoming hearing is expected to scrutinize the steep prices of Novo Nordisk's diabetes drug Ozempic and its weight-loss counterpart, Wegovy, in the U.S. market.

While Senator Sanders did not disclose the names of the generic drug companies he communicated with, it is important to point out that Ozempic's patent is set to expire in the U.S. in early 2023. Ozempic and Wegovy both utilize the same active compound, and though Ozempic was initially developed for treating diabetes, it is frequently prescribed off-label for weight loss. These drugs belong to the GLP-1 class and have seen a surge in demand in the United States. Some market analysts project that the weight-loss drug industry could skyrocket to an astounding $150 billion by the early 2030s.

The exorbitant prices of these medications have attracted scrutiny and criticism from lawmakers. According to Novo Nordisk’s own website, Ozempic is priced at $935.77 per month in the United States, whereas Wegovy commands an even higher price of $1,349.02 per month. Despite the fact that most consumers do not pay the full list prices due to insurance and other discounts, the high costs still place a significant financial strain on numerous patients.