The FDA just made Ozempic even more expensive — here’s how

While Americans struggle to afford life-changing medications, the Food and Drug Administration has effectively forced U.S. patients to subsidize Denmark’s booming economy. The agency’s recent declaration that the semaglutide shortage is “over” represents a staggering policy failure that benefits foreign pharmaceutical giants at the expense of American patients and health care innovation. Semaglutide, a GLP-1 receptor agonist, is the key ingredient in weight loss and diabetes medications that are reducing obesity nationwide.

The numbers tell the story: Novo Nordisk, the Danish pharmaceutical giant behind Ozempic and Wegovy, became the largest company in Europe at the end of 2023 after demand for Ozempic skyrocketed. This meteoric rise has transformed not just the company but an entire nation. Novo Nordisk was responsible for more than half of Denmark’s private sector job growth, which now boasts one of Europe’s fastest-growing economies. Pharmaceutical exports are driving half of the country’s 2.5% GDP growth in 2023, with anticipated growth of 3% in 2024 and 2.9% this year.

Americans pay the highest prices in the world for medications that fuel another nation’s economic boom.

The tiny Danish port town of Kalundborg, home to fewer than 17,000 residents, has become an unlikely boomtown. Novo Nordisk is investing an eye-watering $8.6 billion in expanding its facilities there. While Danes enjoy lower interest rates, expanded public amenities, and a robust job market thanks to the influx of American dollars, Americans face impossible choices about whether they can afford medication at all.

Americans foot the bill

Novo Nordisk relies heavily on the American market, with more than half of its sales coming from the United States. This dominance helped sustain Denmark’s economy, preventing a recession.

The company’s dependence on U.S. consumers is reflected in its steep pricing. Ozempic costs $900 per month, while Wegovy is priced at $1,300 — a prohibitive expense for many Americans. For a time, an affordable alternative existed. When the federal government declared a semaglutide shortage, compounding pharmacies were allowed to produce lower-cost versions, offering them for hundreds of dollars less than the brand-name drugs.

That changed in February. Holdovers from the Biden administration declared the shortage over and set a deadline for compounding pharmacies to stop selling semaglutide alternatives. This move effectively drove the drug’s cost from under $200 back to more than $1,000.

The FDA’s blunder

The FDA’s decision carries devastating consequences for Americans who depend on these medications. Rural and underserved communities, which often relied on telehealth and compounding pharmacies when brand-name options were unavailable or inaccessible, will be disproportionately affected. Countless patients will be forced to abandon treatment due to cost barriers, leading to worsening health conditions and higher long-term health care costs.

The FDA’s decision represents a profound failure of regulatory policy. Rather than protecting American interests, it has sacrificed affordable access to critical medications to boost a foreign pharmaceutical giant’s profits and another country’s economic growth.

A better approach would balance legitimate safety concerns with the need for market competition to control prices. The FDA should immediately reassess its shortage determination and restore the ability of American compounding pharmacies to produce affordable alternatives. Insurance reforms should expand coverage for these medications, and policies need to ensure Americans aren’t paying premium prices that subsidize European health care systems.

Putting American patients first

Regulatory agencies must prioritize the health and financial well-being of American patients over the economic interests of foreign corporations and governments. Americans already pay the highest drug prices in the world, and their money should not be fueling another nation’s economic growth.

Policymakers must take action. Americans deserve access to affordable, life-changing medications without being forced to bankroll Denmark’s economic success. The FDA’s decision on semaglutide is more than bad health care policy — it is a failure to protect American consumers in favor of subsidizing foreign prosperity.