Danish Medicines Agency maintains Ozempic subsidy amidst price drop and criticism over Wegovy disparity

In April, the price of Novo Nordisk’s popular diabetes medication Ozempic unexpectedly dropped by 33%, reaching its lowest level ever. Just two days later, the Danish Medicines Agency announced that Ozempic would maintain its broad subsidy, which had previously been at risk of being discontinued. This price decrease followed a letter from Novo Nordisk’s country manager in Denmark to the agency on March 12, 2024, demanding subsidies for Ozempic users.

This decision was seen as beneficial for Danish regions, which have faced rising costs related to Ozempic subsidies, as well as for users who received a significant discount. However, overweight individuals using Novo Nordisk’s medication Wegovy have not enjoyed similar benefits. Bolette Friderichsen, chair of the Danish Society for General Medicine, criticized the contrasting treatment between those suffering from diabetes and those with severe obesity.

Despite both Ozempic and Wegovy containing the same active ingredient, semaglutide, Ozempic’s price drop makes it significantly cheaper than Wegovy. Currently, Ozempic costs 873 kroner per package, while Wegovy is priced at 1,313 kroner.

Friderichsen expressed concern over the apparent disparity, labeling it a “backroom deal” that favors patients willing to pay more for Wegovy while allowing savings on subsidized Ozempic.

The subsidy for Ozempic has strained finances in Danish regions, with expenditures rising from 641 million kroner in 2022 to 1.4 billion kroner in 2023. The Danish Medicines Agency has stated that it did not negotiate the specific price of Ozempic, but acknowledged that the price reduction significantly influenced its decision to keep the subsidy in place.