Ozempic and Wegovy are successful weight loss drugs, manufactured by Norsk Nordisk, a Danish company. Both are highly effective against diabetes.
Critics complain about the pricing on these drugs in the United States, compared to peer countries. The monthly cost to US patients is over 10 times for patients in the UK, which is higher still than the burdens on patients in Australia and France.
The reason for the huge price disparities, however, is surprising, and sinister: it is primarily not driven by price-gouging drug companies, but by rent-seeking US health insurers. By creating a new sub-industry called Pharmacy Benefit Managers, and demanding "rebates" from drug companies hoping to sell in the US market, health insurers get around the profit caps established under the ObamaCare law, and enjoy billions of dollars in risk-free profits, with shocking cost increases borne by American patients, hospitals, and federal and state governments.
Correction at 00:37: Novo Nordisk is a Danish company, not a Dutch company. Apologies.
Resources and links:
Here’s How Much More Ozempic Costs in the U.S. Compared to Other Countries
www.healthline...
CNBC, Novo Nordisk’s $1,000 diabetes drug Ozempic can be made for less than $5 a month, study suggests
www.cnbc.com/2...
The Hill, The real reason drug costs are so high in America
thehill.com/op...
KFF Policy Watch: Medicare Spending on Ozempic and Other GLP-1s Is Skyrocketing
www.kff.org/po...
New York Times, The opaque industry secretly inflating prices for prescription drugs: Pharmacy Benefit Managers are driving up drug costs for millions of people, employers, and the government
www.nytimes.co...
Largest American companies, ranked by revenues
companiesmarke...
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