Jørgensen testifying at Senate HELP. Photo: Al Drago/Bloomberg via Getty Images
Novo Nordisk CEO Lars Fruergaard Jørgensen didn't commit to lower the price of Ozempic or Wegovy at a Senate HELP Committee hearing Tuesday, but a pledge from PBMs added a twist to the proceedings.
Why it matters: Senators are not close to agreeing on legislation targeting weight loss drug prices, but Chair Bernie Sanders at a minimum is trying to jump-start talks between Novo Nordisk and PBMs.
Some key takeaways:
1. Sanders tried to preempt a shift in blame
Drug companies and their allies are fond of using these kinds of hearings to call PBMs the real culprit for patients struggling to afford medicines.
- But Sanders had a surprise waiting, announcing that he had received commitments in writing from the three major PBMs that they would not reduce coverage of Ozempic or Wegovy if Novo Nordisk cut the list price.
- Sanders asked Jørgensen to commit to talk with the PBMs to work out a way to lower the price, which the CEO appeared open to doing, albeit with a note of skepticism.
- "Anything that can help patients get access I'm supportive of," he said, adding that he wants to make sure savings actually "get to the patients" and that PBMs in the past have restricted coverage after price reductions.
2. Cassidy struck a balance
HELP Committee Ranking Member Bill Cassidy didn't leave Novo Nordisk blameless for high prices but took a more measured tone than Sanders.
- "We can argue about the net versus the list [price], but they're expensive," Cassidy said, noting the "tension between the need to incentivize innovation and the need to afford that innovation."
3. Novo's defenders
Jørgensen got a reprieve from the heated back-and-forth during Q&A with other panel Republicans.
- "Novo Nordisk is not the villain in this story; they're the hero," said Sen. Roger Marshall, calling its weight loss product a "miracle drug."
- Sen. Ted Budd asked Jørgensen for suggestions on reforming the "perverse incentives" in the health care system. Sen. Susan Collins asked him to explain how patients would benefit from PBM reform.
- The questions are a reminder that despite the tough day for Jørgensen, bipartisan legislation targeting the company is not likely in the offing.
4. The PBM bill push
Many of the calls for legislative solutions pointed at PBMs rather than drug manufacturers (which took a hit in the Inflation Reduction Act in 2022).
- Several GOP senators called on Sanders and Senate Democratic leadership to bring the HELP Committee's bipartisan PBM overhaul bill to the floor.
- Marshall said he wanted to add his "delinking" legislation, which changes the way PBMs are paid, to the overhaul package.
- Even on the Democratic side, Sen. Ben Ray Luján said that "legislation that's moved out of this committee deserves to be heard on the floor."
Our thought bubble: The HELP PBM bill is unlikely to get a standalone floor vote, considering that several rival bills are floating around Congress. But pieces of it still could wind up in a year-end compromise.
