The 'miracle drug' for weight loss has seen a price hike; will consumers still foot the bill?
Recently, according to analysis from the healthcare industry research firm 46brooklyn Research, several pharmaceutical companies, including weight loss drug manufacturers Novo Nordisk and Eli Lilly, have raised the prices of 775 brand-name drugs in January. $Eli Lilly and Co (LLY.US)$ $Novo-Nordisk A/S (NVO.US)$
The analysis firm states that the median increase in the prices of these drugs is 4.5%, but for some, the price has surged by approximately 10% or even higher. Moreover, the median increase has surpassed the inflation rate, which was 3.4% in December.
Notably, the price of Ozempic, a drug under Novo Nordisk, has increased by 3.5%, pushing the cost of a month's supply to nearly $970. Ozempic is a diabetes treatment but is widely used for weight loss as well. Similarly, under Eli Lilly, the price of Mounjaro has risen by 4.5%, resulting in a monthly medication cost of almost $1070.
Novo Nordisk stated that the fluctuations in the selling prices take into account market conditions and inflation, and since 2016, their drug price increases in the United States have never exceeded single digits. Eli Lilly mentioned that its pricing is determined based on the value, efficacy, and safety of the drugs.
Pharmaceutical companies generally attribute price hikes to market trends, inflation, and the value of the drugs. Some companies claim that changes in pricing will not affect patients' access to medications.
It is worth noting that pharmaceutical companies often offer discounts on drug prices to secure reimbursement from health insurance. Patients with health insurance typically only need to pay a portion of the cost. However, this price increase has still angered both patients and doctors.
Last year, the U.S. government began imposing penalties on companies with drug price increases exceeding the inflation rate. This year, the U.S. government plans to negotiate prices with companies for 10 drugs, including the popular blood thinner Eliquis.
The analysis firm states that the median increase in the prices of these drugs is 4.5%, but for some, the price has surged by approximately 10% or even higher. Moreover, the median increase has surpassed the inflation rate, which was 3.4% in December.
Notably, the price of Ozempic, a drug under Novo Nordisk, has increased by 3.5%, pushing the cost of a month's supply to nearly $970. Ozempic is a diabetes treatment but is widely used for weight loss as well. Similarly, under Eli Lilly, the price of Mounjaro has risen by 4.5%, resulting in a monthly medication cost of almost $1070.
Novo Nordisk stated that the fluctuations in the selling prices take into account market conditions and inflation, and since 2016, their drug price increases in the United States have never exceeded single digits. Eli Lilly mentioned that its pricing is determined based on the value, efficacy, and safety of the drugs.
Pharmaceutical companies generally attribute price hikes to market trends, inflation, and the value of the drugs. Some companies claim that changes in pricing will not affect patients' access to medications.
It is worth noting that pharmaceutical companies often offer discounts on drug prices to secure reimbursement from health insurance. Patients with health insurance typically only need to pay a portion of the cost. However, this price increase has still angered both patients and doctors.
Last year, the U.S. government began imposing penalties on companies with drug price increases exceeding the inflation rate. This year, the U.S. government plans to negotiate prices with companies for 10 drugs, including the popular blood thinner Eliquis.
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