Ozempic, the appetite suppressant injection also known as semaglutide, currently costs $935.77 in the United States without insurance. But a new research report from Yale University, King’s College Hospital London and Doctors Without Borders published in JAMA Network Open Wednesday suggests that the price of the prescription drug could be lowered to a fraction of what it is now, while still generating a increase in profit.
The researchers calculated cost-based prices for one month of Ozempic, administered weekly as a 0.77 mg injectable form, by combining data from commercial shipments from January 1, 2016 to March 31, 2023 with the cost of creating the drug, other expenses operations, a profit margin and taxes. They found that Ozempic’s cost-based pricing ranged from $0.89 to $4.73 per month.
“The results of this study suggest that insulins, SGLT2Is, and GLP1As can likely be produced at much lower prices than currently available, allowing for broader access,” the researchers wrote.
A pharmacist holds a box of Novo Nordisk A/S Ozempic brand semaglutide drugs. Photographer: George Frey/Bloomberg via Getty Images
Ozempic is cheaper outside the U.S.: A Bloomberg report found that a month’s supply of the injectable costs less than $300 in Mexico.
“Outside the United States, countries have different regulatory requirements regarding drug pricing, including negotiation with their respective government bodies,” Ozempic maker Novo Nordisk told Bloomberg.
Related: FDA Seized ‘Thousands’ of Fake Units of Ozempic Amid Reported Cases of ‘Adverse Reactions’ in Patients
Drug markups have long been under national scrutiny, with Martin Shkreli, former head of Turing Pharmaceuticals, forced to pay $64 million in 2022 after inflating the price of a life-saving drug by 4,000%.
Ozempic falls into the GLP-1 category of drugs, meaning it addresses type 2 diabetes by improving blood sugar control and potentially even leading to weight loss, according to the Mayo Clinic.
Prescriptions for GLP-1 drugs increased 300% between 2020 and 2022, Trilliant Health researchers found. Ozempic first made headlines in 2021 when it appeared on Dr. Oz Show.
Related: Novo Nordisk, maker of Ozempic, is suing spas and clinics for selling knockoffs
Ozempic and other similar drugs could cause an average weight loss of 15% to 20%, “significantly more than previous options,” according to Columbia Surgery.
The same publication warns of the lifelong commitment that Ozempic requires, as stopping the drug could lead to gaining all the weight back. The drug might also cause nausea, cramps, and other unpleasant side effects.
Despite high costs and potential downsides, Ozempic’s popularity skyrocketed last year, with 66% of its more than $13 billion in sales coming from the United States, according to Novo Nordisk’s 2023 annual report.
Related: Novo Nordisk is worth more than Denmark’s GDP thanks to America’s Ozempic and Wegovy craze