Medicare Price Negotiations Target Weight-Loss Drugs: Impact on Patients, Sales, and Price
Impact on Patients:
* Potential for increased access to GLP-1 drugs (class of Wegovy and Ozempic) for seniors (65+)
* Expanded coverage of anti-obesity medications could reduce out-of-pocket costs for some Americans
Impact on Sales:
* Ozempic is expected to have minimal impact due to existing discounts
* Wegovy's Medicare coverage eligibility is limited to obese patients with pre-existing heart conditions, representing a relatively small portion of the obesity population
Impact on Price:
* Negotiated price cuts based on gross price, not after-market discounts
* Novo Nordisk estimates retaining 60% of Ozempic's list price
* TD Cowen anticipates a 30% discount from current average net price in 2027
* Wide range of potential outcomes in negotiations with incoming Trump administration