(NewsNation) — While it can cost patients without insurance nearly $1,000 for a month’s supply of Novo Nordisk’s diabetes drug Ozempic, a new study found it costs less than $5 a month to make the drug.
The study, Estimated Sustainable Cost-Based Prices for Diabetes Medicines, set out to estimate the cost of the drug’s production and estimated market price points. Researchers also used those numbers to compare estimated costs with today’s market prices.
There has been a sudden increase in diabetes cases across the globe, and the Centers for Disease Control and Prevention expects an upward trend in diagnoses. Plus, CDC data estimated the cost of diagnosed diabetes was $413 billion in 2022.
“The costs associated with diabetes put substantial pressure on patients and health budgets, especially in low- and middle-income countries. The prices of diabetes medicines are a key determinant for access, yet little is known about the association between manufacturing costs and current market prices,” researchers said.
Findings published in the JAMA Network Open say that a month’s supply of Ozempic can be produced for an estimated 89 cents to $4.73 in the U.S.
Based on this data, researchers estimated the insulin treatment in a reusable pen device could sell for as little as $96 (human insulin) — $111 (insulin analogs) — for a basal-bolus regimen annually; $61 per year using twice-daily injections of mixed human insulin; and $50 (human insulin) — $72 (insulin analogs) — per year for a once-daily basal insulin injection (for type 2 diabetes).
Instead, Novo Nordisk sells a month’s worth of Ozempic at $935.77 before insurance and rebates.
Researchers concluded that the current market costs for the drug limits access to those who need it but can’t afford it, despite there being a solution to reduce prices to more affordable levels.