How did Novo Nordisk defend its GLP-1 prices?
Novo's CEO argued at the 2024 Senate hearing that the company had spent billions developing and manufacturing GLP-1 therapies — and that net prices after rebates are much lower than list prices — though he acknowledged PBM dynamics as new information.
At the September 2024 Senate hearing, Novo's CEO Lars Fruergaard Jørgensen argued that the company had spent billions to research, develop and expand manufacturing for the treatments and was funding research into other obesity-related conditions. His written testimony said the drugs extend and improve lives, which could reduce the health costs associated with obesity and diabetes. He said the company had fought for public and private insurance coverage, and that net prices after rebates are much lower than list prices.
When Sanders cited written promises he had received from PBMs about how they would treat lower list prices, Jørgensen said this was "new information to me". Critics said the exchange showed that manufacturers and PBMs each blame the other for high prices, leaving no one accountable.