1. Estimating the Cost of New Treatments for Diabetes and Obesity
- Author
-
Ippolito, Benedic N. and Levy, Joseph F.
- Subjects
Novo Nordisk A/S -- Company forecasts ,Obesity -- Economic aspects ,Diabetes therapy -- Prices and rates ,Drugs -- Prices and rates ,Blood sugar -- Economic aspects ,Pharmaceutical industry -- Prices and rates -- Economic aspects ,Company business forecast/projection ,Company pricing policy ,Social sciences ,Ozempic (Medication) -- Prices and rates ,Mounjaro (Medication) -- Prices and rates ,Wegovy (Medication) -- Prices and rates ,Rybelsus (Medication) -- Prices and rates - Abstract
The rising popularity of drugs to treat obesity and diabetes, including Ozempic, has focused attention on their costs. However, existing research has incompletely characterized prices by focusing on only undiscounted list prices. We estimate that net prices received by drugmakers are 48-78 percent lower than list prices. In effect, we document a large difference between net payments to manufacturers and the prices faced by some consumers who pay list prices, even after we adjust for currently available coupons from manufacturers. We conclude by highlighting uncertainty surrounding future prices of drugs in this class and policy implications., The introduction of glucagon-like peptide-1 agonists (GLP-is), which include drugs such as Ozempic, represents a milestone in the treatment of diabetes and obesity. Clinical evidence suggests that these products can [...]
- Published
- 2023