Medicare Unveils Prescription Drug Negotiation List, Including Novo Nordisk's Wegovy
Summary:
The US government has announced a list of 15 prescription drugs targeted for Medicare price negotiations in 2027, including Novo Nordisk's weight-loss drug Wegovy.
Impact on Patients:
* Potential for wider access to GLP-1 drugs for seniors over 65.
* Medicare Part D currently cannot cover drugs approved solely for obesity.
* Expanding coverage could increase affordability for Americans.
Impact on Sales:
* Negotiated cuts based on gross drug price, not discounted price.
* Limited impact on sales of Ozempic (diabetes drug) due to existing discounts.
* Wegovy eligible for Medicare coverage for obese patients with pre-existing heart conditions.
* This population constitutes a small portion of obese individuals in the US.
Impact on Price:
* Ozempic list price: $935/month
* Wegovy list price: $1,350/month
* Negotiated cuts based on gross price, not accounting for rebates or discounts.
* Novo Nordisk retains approximately 60% of Ozempic's list price.
* TD Cowen estimates a 30% discount relative to current net price in 2027.