Despite Medicare’s decision to cover Wegovy, a weight-loss drug, for seniors with obesity and heart disease, many doctors report difficulty in obtaining coverage for their patients. While Medicare prohibits coverage for weight-loss medications, the drug’s high cost and limited coverage raise concerns about access for older Americans.
Results for: Novo Nordisk
Eli Lilly raised its annual sales forecast by $3 billion after increased manufacturing capacity for its weight-loss drug Zepbound, driving its shares up 14%. The company also boosted its 2024 profit forecast and reported Zepbound sales exceeding $1 billion for the first time in a quarter since its launch.
Despite reporting strong quarterly results, Novo Nordisk’s shares have experienced a pullback. Mizuho’s Jared Holz joined ‘Fast Money’ to provide his insights on the company’s performance and future prospects.
The Danish Medicines Agency has implemented a new policy favoring less expensive medications for type 2 diabetes patients, potentially impacting the prescription of popular GLP-1 drugs such as Novo Nordisk’s Ozempic. The agency’s decision aims to reduce healthcare costs and promote the use of equally effective alternatives to GLP-1 drugs. The move has drawn attention amidst concerns about the rising prices of GLP-1 drugs like Ozempic and their increasing use for weight loss purposes, leading to shortages in some countries.
Senator Bernie Sanders has opened an investigation into the exorbitant pricing of Novo Nordisk’s diabetes and weight loss drugs, Ozempic and Wegovy. In a letter addressed to the company’s CEO, Sanders expressed his concerns over significant price discrepancies between the medications and across different countries. Despite their shared active ingredient, Ozempic and Wegovy are priced markedly differently, with costs in the United States far exceeding those in Canada and Europe. Sanders cited a Yale University report suggesting that these drugs could be produced profitably for less than $5 per month, raising questions about Novo Nordisk’s pricing strategy.
North Carolina is facing financial strain due to the high cost of popular weight loss drugs, prompting the state to stop providing coverage and negotiate directly with manufacturers. Negotiations are ongoing, but patients are concerned about the impact on their health and access to medication.
The Senate Committee on Health, Education, Labor, and Pensions is investigating Novo Nordisk’s pricing strategies, particularly for its diabetes and obesity medications, Ozempic and Wegovy. Senator Bernie Sanders has requested internal communications from Novo Nordisk regarding pricing discrepancies between the U.S. and other countries. The committee is also questioning why Wegovy, which contains the same compound as Ozempic, has a higher price tag. The investigation is part of a broader inquiry into industry-wide pricing practices in the pharmaceutical industry, with Senator Sanders planning to scrutinize Eli Lilly And Co as well.
Novo Nordisk has provided updates on its insulin and GLP-1 product lines. Following a previous announcement of price reductions, the company has discontinued the basal insulin Levemir.
Around 3.6 million older Americans are now eligible for Medicare coverage of Novo Nordisk’s weight-loss drug Wegovy, following FDA approval for expanded use in reducing cardiovascular risks. The new approval allows for Medicare Part D plans to cover Wegovy for individuals who are overweight or obese and have both heart disease and obesity.
Tony Genua, a seasoned portfolio manager with over four decades of experience, shares his insights on the US market and highlights his bullish stance. Emphasizing the role of innovation and macroeconomic shifts in shaping market leadership, Genua highlights the importance of identifying companies with strong R&D and the ability to adapt to changing economic conditions. He also discusses the potential impact of the US election, rising earnings, and the influx of funds from money market investments. Genua provides specific examples of companies he favors, including Nvidia for its dominance in AI chipsets, Amazon for its cloud computing prowess, Eli Lilly for its obesity drug and drug pipeline, and Cheniere Energy and Marathon for their contributions to cleaner fossil fuels and air travel, respectively.