Biden, Sanders call for obesity drug makers to cut prices

President Biden and Sen. Bernie Sanders (D-Vt.) are calling for price cuts on popular GLP-1 weight-loss drugs. Pharmaceutical stocks Novo Nordisk (NVO) — who makes Ozempic and Wegovy — and Eli Lilly (LLY) — who makes Mounjaro and Zepbound — tilt lower on the news.

Yahoo Finance Health Reporter Anjalee Khemlani details the political discourse around these obesity treatments, citing President Biden and Senator Sanders' op-ed published in USA Today.

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This post was written by Luke Carberry Mogan.

Video transcript

Hi Lily there.

I mean, you take a look at chairs pairing some of their earlier losses have been under pressure that them along with, uh, Novo Nordisk on the heels of this Op Ed that we got from President Biden and also from Senator Sanders targeting the cost of G LP one drugs.

What can you tell us there?

And just in terms of how big of a, maybe an overhang this could potentially be if, if we do continue to see this type of pressure.

Yeah, that Op Ed was really interesting because it definitely had a lot of, uh, Senator Bernie talking points.

Right.

He's been harping on Novo Nordisk in particular and kind of letting the Lily hang back even though both do have pretty high prices for both their GP ones.

Those are for a refresher.

Eli lilies are J and that bound for diabetes that bound for weight loss as well as uh, no, no O for diabetes and will go for weight loss as you can see on your screen at or over near or over $1000 per month.

That's the monthly prescription costs.

And those are the list prices and So that's sort of where we get into the dirty details.

Now, this has been part of Senator Sanders for some time.

He's been focusing on them.

So he did say in the, and that, you know, these companies basically, they don't reduce those prices, the government will be forced to then reduce it for them.

And then Lily and no, no, both gave statements to Yahoo Finance.

In a statement.

You Lily said that basically comparing list prices in the United States to other countries is basically doing an ad just it, it's too complex and that's the equivalent of what?

No, no.

Also said that they're disappointed that's a very difficult and complex problem that's being oversimplified for political purposes.

Very strong comments there and this all on the heels of the treat and reduce Obesity Act that just got its first sunshine got passed out of the House ways and Means Committee, which means that Medicare will finally get a chance to actually evaluate or rather the congressional budget office will finally get a chance to evaluate the cost to Medicare for these drugs.

So that bill did get reduced to kind of a limited population.

But we're looking at really a shift in the focus of these drugs and the potential for government in impact as well.

Stories that we'll continue to watch.

Right and great stuff.

Thanks.