Novo Nordisk to slash Wegovy, Ozempic U.S. list prices by up to 50%

Novo Nordisk on Tuesday said it plans to slash the monthly list prices of its popular obesity and diabetes drugs in the U.S. by up to 50% starting in 2027, in a bid to make the treatments more accessible to patients with insurance coverage. 

The obesity injection Wegovy, its new pill counterpart, the diabetes shot Ozempic and the oral diabetes drug Rybelsus will have a new lower list price of $675 per month starting on Jan. 1, 2027. The Wegovy medicines both currently have list prices of around $1,350 per month, while the diabetes drugs have list prices of around $1,027 per month.

For the first time, Novo said its price cuts are targeting insured patients whose out-of-pocket costs are linked to list prices, such as people with high-deductible health plans or co-insurance benefit designs.

“Both of these patient populations should, beginning [in 2027], see a benefit with lower out-of-pocket burdens,” Jamey Millar, the company’s head of U.S. operations, told CNBC in an interview.

He added that Novo expects improvements in access and uptake among patients in the commercial insurance market, though the company is not giving any specific expectations.

The move could help Novo compete better with Eli Lilly, which now holds the majority share in the blockbuster GLP-1 market. Lilly’s more effective drugs and earlier foray into the direct-to-consumer space have allowed it to take the lead in the space, but the company has yet to significantly lower the U.S. list prices of its medicines.

It’s unclear exactly how much commercial insured patients typically pay out of pocket for Novo’s drugs. Those patients may pay as little as $25 per month for Novo’s drugs in “only the best of circumstances,” Millar said.

But patients in high-deductible plans would have to pay out-of-pocket “more or less the full list price of a drug until they reach that” threshold and the insurance benefit kicks in, he added. Millar said some of those patients defer treatment entirely because they don’t want to shoulder that expense. The number of patients using high-deductible plans has increased over the years due to the trade-off of lower premiums, he noted.

Meanwhile, Millar said other people have 25% to 33% of their co-insurance linked to the list prices of those drugs.

The Danish drugmaker has previously cut the direct-to-consumer prices of Wegovy and Ozempic, which primarily benefit cash-paying patients who often don’t have insurance coverage for the drugs. 

Novo offers its drugs to cash-paying patients for $149 to $499 per month, depending on the specific product and dose. Novo and Lilly have escalated a GLP-1 pricing war over the last year, especially following the landmark “most favored nation” deals they struck with President Donald Trump in November.

The move also coincides with new, lower Medicare prices going into effect for Novo’s obesity and diabetes drugs in 2027 following negotiations with the federal government under the Inflation Reduction Act. The new negotiated prices for Wegovy, Ozempic and Rybelsus will be $274 per month.