Novo's CEO will testify, but change is unlikely
Novo's CEO goes to congress to testify, but not much is likely to change in the drug's pricing. We dive into some historical context.
While some are worried about the safety of GLP1 Receptor Agonists, the political class in the US is primarily worried about costs.
Check out our quick explainer
We think is the right balance – GLP1 RAs like Ozempic, Wegovy, Zepbound and others have proven themselves to be effective and beneficial to most people that take them, and they are being prescribed in increasing numbers.
The big problem with GLP1 Receptor Agonists seems now to be access.
Making sure that people can afford to use GLP1s and the health benefits that come with them, and ensuring that companies are not "gouging" consumers with excessively high prices.
The CEO will have to answer to congress, and while it is unlikely that any action will be directly taken to lower the pricing, the answers should be illuminating.
Joregensen (Novo Nordisk CEO) is expected to blame the US medical system (which is certainly a valid source of issues/problems), and
When has this happened in the past?
In the past, CEOs have had to answer and defend pricing decisions to avoid labels of "price gouging". Most occurrences go on without much fan fare or media furor.
Just seven months ago, many pharma CEOs were called in to answer for drug pricing:
The most notorious case of this is likely Martin Shkreli, who was called in to testify due to increasing the price of a drug he purchased (Daraprim) and increased the price of the drug from $13 to $750 a pill.
While the media furor around Shkreli somewhat distorts the reaction from both the court and the public, you can view the hearing itself in it's entirety on YouTube:
Media and many onlookers were furious with Shkreli, but Shkreli was not convicted because of the increased prices (and in fact his company later decided to not decrease prices across the board) – he was convicted on counts of securities fraud.
That said, the media furor did cause some other companies to attempt to fill the gap (and capitalize on positive media coverage):
On October 22, 2015, Mark L. Baum, CEO of Imprimis Pharmaceuticals, announced that his company would provide a combination product containing pyrimethamine (the active ingredient in Daraprim) and leucovorin at "$1-a-pill" as a cheaper and more efficient alternative to Daraprim.[80] This product was intended to be used alongside sulfadiazine in the standard protocol to treat toxoplasmosis typically seen in AIDS patients.[59]
Jorgensen is clearly not Shkreli, but it is important to note that simply attending a
We'll still have to look forward to improvements in accessibility and competitive pricing with the introduction of competition – new drugs, new formulations, and new companies entering the space.
