$935 Diabetes Jab Can Be Made for Less Than $5, Study Suggests

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The same product is available for $59 in Germany and for $155 in Canada.

It costs Novo Nordisk less than $5 per month to produce its top-selling diabetes injection, Ozempic, even as it charges nearly $1,000 for a monthโ€™s supply before insurance, according to a new study.

The study, published Wednesday in the journal JAMA Network Open, raises questions about the prohibitive cost of the popular diabetes treatment and other weight loss drugs that belong to a pricy class of medications based on GLP-1 technology.

Those medicines work by mimicking a hormone called glucagon-like peptide-1 (GLP-1), which stimulates the pancreas to release insulin when blood sugar rises too high, slows down the emptying of the stomach, and targets brain receptors involved in reducing appetite. Over the past year, demand for GLP-1 agonists has exploded despite soaring costs and limited insurance coverage.

For their study, researchers at Yale University, Kingโ€™s College Hospital in London, and the nonprofit Doctors Without Borders looked at the cost of manufacturing insulin and compared it with that of GLP-1 agonists. They estimated those prices by combining manufacturing costs for the weekly injection with costs of formulation and other operating expenses, plus a profit margin with an allowance for tax.

The foundational price for a weekly dose of injectable semaglutideโ€”the generic name for Ozempicโ€”ranges from $0.89 to $4.73 per month, the study found. By contrast, a vial of human insulin can be manufactured at a cost between $2.37 and $5.94 per month.

A monthโ€™s supply of Ozempic is $935.77 for those in the United States without health insurance, according to Novoโ€™s website. The Danish companyโ€™s GLP-1 weight loss drug, Wegovy, is listed as $1,349 per month.

Wednesdayโ€™s study concluded that GLP-1s โ€œcan likely be manufactured for prices far below current prices, enabling wider access.โ€

โ€œHigh prices limit access to newer diabetes medicines in many countries,โ€ the researchers wrote. โ€œThe findings of this study suggest that robust generic and bio-similar competition could reduce prices to more affordable levels and enable expansion of diabetes treatment globally.โ€

Citing the findings, Sen. Bernie Sanders (I-Vt.) called on Novo to slash prices for both Ozempic and Wegovy, highlighting the price gap for the identical drugs sold in America and other developed countries.

Byย Bill Pan

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