Benzinga - by Vandana Singh, Benzinga Editor. A recent health policy organization KFF analysis highlighted that weight-loss drugs are considerably pricier in the U.S. than in other affluent countries.
The report's methodology involved comparing list prices, the preliminary prices set by pharmaceutical companies before insurance or discounts.
Due to their prohibitive costs, averaging around $1,000 monthly for prolonged treatments, many U.S. insurers exclude these medications from their coverage.
Recent trial data from Novo Nordisk A/S (NYSE: NVO) indicated that their drug Wegovy reduces the risk of serious heart ailments by 20% in at-risk overweight or obese patients, thus potentially intensifying the demand for U.S. insurers to include weight-loss medications in their coverage.
This pricing disparity puts a financial burden on the vast segment of the American population dealing with obesity, making these GLP-1 agonists inaccessible for many.
Countries like Japan negotiate directly with drug manufacturers, leading to more affordable drug list prices, CNBC reported. In contrast, the U.S. does not, resulting in substantial price differences.
For instance, Novo Nordisk's Ozempic, an off-label weight loss diabetes drug, is listed at $936 for a month's supply in the U.S. In comparison, it costs only $168 in Japan and even lower in countries like Germany ($103), Sweden ($96), and France ($83).
The same trend is observed with Novo Nordisk's Wegovy, with a U.S. list price over $1,300, while Germany has it at $328.
Eli Lilly And Co's (NYSE: LLY) Mounjaro is priced at $1,023 in the U.S., but it's $319 in Japan and $444 in the Netherlands.
KFF's study also revealed that while nearly 50% of U.S. adults are interested in prescription weight-loss drugs, this drops to 16% if not covered by insurance.
80% of respondents felt insurance should cover these drugs for overweight or obese individuals, with half advocating for coverage for anyone desiring weight loss.
However, insurance representatives emphasize the need for more data before expanding coverage.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.