- The CEO of <strong>Novo Nordisk</strong> warned of the impact of tariffs on the pharmaceutical industry. Weight-loss drugs, including Ozempic and Wegovy, could cost more. Generic meds could also see price increases and perhaps shortages, he added.
Users of revolutionary weight-loss drugs may have to adjust their budgets or dosages in the near future, as the maker of Ozempic and Wegovy is warning tariffs could drive prices higher.
Novo Nordisk CEO Lars Fruergaard Jørgensen, on Thursday, said he expects “some short-term impact” from Donald Trump’s tariffs.
Denmark, where Novo Nordisk is based, has not yet been targeted by the U.S. for tariffs, though Trump has said tariffs on goods from the European Union are “coming very soon.” However, the pharmaceutical company relies on materials sourced from other countries, including China.
Insurance companies generally cover Ozempic and Wegovy when it is prescribed for Type 2 diabetes. However, when the drugs are used for weight loss, it’s less certain. Patients may need to be diagnosed with certain health issues for full coverage.
As a result, many people opt to pay for the drug out of pocket. Those expenses currently run in the neighborhood of $1,000 every four weeks; Novo Nordisk, this week, began offering a cheaper option for people who buy direct and pay cash.
Jorgensen did not estimate how much he expects the price of the drugs to be adjusted due to tariffs. The company, however, is planning to make more medications for Americans within the U.S., announcing plans last year to build a $4.1 billion factory in North Carolina.
Beyond Ozempic and Wegovy, Jorgensen had a warning about the impact of the tariffs on other drugs, including cheaper generic versions of widely used drugs.
“By far the largest drug category is generic medicines,” he said. “If you put tariffs on those, I have a hard time seeing that that is not going to lead to other shortages of medicine or increased pricing in general.”