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Home»Investments»Novo Nordisk announces $6 billion investment in Ozempic and Wegoby amid shortages
Investments

Novo Nordisk announces $6 billion investment in Ozempic and Wegoby amid shortages

prosperplanetpulse.comBy prosperplanetpulse.comMay 2, 2024No Comments3 Mins Read0 Views
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Novo Nordisk’s Negel Morris spoke exclusively with ABC News.

via

May 2, 2024, 2:28 PM ET

• 6 minute read

Executives at Novo Nordisk, the maker of popular weight-loss drugs such as Ozempic and Wigovy, said the company is investing more than $6 billion to meet rising demand for drugs amid shortages and price hikes. said.

Negel Morris, Novo Nordisk’s senior vice president and head of U.S. cardiometabolic sales, warned that even with increased investment, there will likely still be delays in bringing drugs to market.

“It’s not like a light switch,” Morris told ABC News’ Eliel Reshef in an exclusive interview that aired Thursday on “Good Morning America.” “The strategy is to be very careful and thoughtful about the amount of low doses that we bring to market, and that the investments that we are making in our manufacturing capabilities ensure that over time, we , we can meet that request.”

The U.S. Food and Drug Administration says Wegovy’s three lowest doses (0.25 milligrams to 1 milligram) currently have “limited availability.”

Novo Nordisk told ABC News that despite Wegovy’s shortage, the company has enough product on the market to start using Wegovy for 25,000 patients a week, an increase from late last year. He said it was a fourfold increase.

In addition, Novo Nordisk has agreed to acquire three production facilities from pharmaceutical and biotechnology company Catalent for $11 billion, and the company expects to complete the acquisition by the end of the year.

Ozempic is currently available in all doses, but has been in short supply for the past two years as demand for the drug used for weight loss continues to soar, according to the FDA.

April 13, 2023, photo of anti-diabetic drug Ozempic at a pharmacy.Florian Gaertner/Photothek via Getty Images

Ozempic is approved by the U.S. Food and Drug Administration to treat type 2 diabetes, but some doctors prescribe the drug “off-label” for weight loss purposes, which is approved by the FDA.

Wegovy, which contains the same active ingredient semaglutide as Ozempic, is FDA-approved as a weight loss drug.

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In addition to physical access to drugs, financial access is also a barrier for people with diabetes and obesity who could benefit from drugs.

Without insurance, out-of-pocket costs for medications like Ozempic and Wigovy can be more than $1,000 per month.

Last month, a U.S. Senate committee led by Vermont Sen. Bernie Sanders launched an investigation into the high prices of the two drugs.

Novo Nordisk told ABC News that the company is working with insurance companies to lower the cost of the drug and is also working with lawmakers to make obesity drugs eligible for Medicare coverage.

Morris said Novo Nordisk agrees that medicines “need to be made more affordable,” but did not provide further details.

Negel Morris, senior vice president at Novo Nordisk, talks about drugs used for weight loss on “Good Morning America.”
GMA

“I can absolutely assure the United States that we are doing everything we can to increase supply as well as reduce costs and reduce out-of-pocket costs in a way that is consistent with the U.S. health care system,” Morris said. Ta. “Our manufacturing facility operates 24/7.”

She continued, “We’ve had to be thoughtful, and certainly responsible, to release more of the drug at lower doses so more new patients can start treatment.” Our plan to increase access to this drug is something we remain committed to.”

Asked by Reshef where the profits from sales of Wegovy and Ozempic would go, Morris said it would go back to a division focused on research and innovation in new medicines and obesity prevention.



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