Big pharmaceutical firms such as Novo Nordisk and Eli Lilly have monopoly power because of government issued patents on certain drugs. For example, Novo Nordisk has filed approximately 320 patents on their single active ingredient behind drugs for diabetes and weight loss. Could big pharma be potentially gaming the U.S. patent system to extend their monopoly power and keep prices high on Ozempic, Wegovy and Mounjaro?

The compound patent for semaglutide was originally set to expire in March 2026, but it has now been extended until December 2031 giving Novo Nordisk even more patent protection which translates into billions of dollars in profit for the pharmaceutical firm. Additionally, Eli Lilly has filed several U.S. patent applications on their two GLP-1 products, Mounjaro and Zepbound. These big pharma giants are being accused of prioritizing profit over research and development.

The main concern is over price hikes on brand name GLP-1s. Novo Nordisk and Eli Lilly’s prices are much higher in the United States compared to other waethly countries. For example, a monthly supply of Ozempic will cost around $936 in the United States compared to just $169 in Japan. Why is Novo Nordisk charging nearly 5.5 times more in the United States compared to Japan for the same exact drug? By comparison, the U.S. list price for Wegovy is around $1,349 compared to $328 in Germany. 

 

Discussion Questions:

  1. Are you surprised by how expensive weight loss medication is in the United States compared to other wealthy countries? How do differences in healthcare systems and pricing regulations across countries impact the affordability of weight loss medications in the United States compared to other wealthy nations?
  2. Should weight loss medication be fully covered by health insurance? How might this impact healthcare costs, insurance premiums, and public health outcomes?