Sources have confirmed a growing disparity in the price of the blockbuster diabetes drug Ozempic between Canada and the United States, with Canadian patients paying a fraction of the cost borne by their American counterparts. Documents obtained by this newsroom show that a one-month supply of Ozempic, made by Danish pharmaceutical giant Novo Nordisk, costs roughly $150 in Canada compared to over $900 in the US. The revelation has prompted calls from UK policymakers for a global overhaul of pharmaceutical pricing.
The price gap has been widening for years, but new data from the Canadian Institute for Health Information reveals that Canadian taxpayers subsidised nearly 60% of Ozempic costs through public drug plans in 2023. Meanwhile, American insurers and patients have shouldered the burden of a pricing system that allows manufacturers to set list prices without government negotiation. A former FDA official, speaking on condition of anonymity, told this reporter: 'The US has no mechanism to push back. We pay whatever they demand.'
Across the Atlantic, the UK's National Institute for Health and Care Excellence (NICE) has recommended Ozempic for NHS use but only after securing a confidential discount. Now, UK Health Secretary Victoria Atkins has written to her G7 counterparts calling for a 'fair pricing framework' that ties drug costs to patient outcomes and affordability. 'It is unacceptable that life-saving medicines are priced differently based on postcode or national borders,' she said in a statement.
But Novo Nordisk defends its pricing. In a corporate filing unearthed by our team, the company cites 'the significant investment in research and development' required to bring Ozempic to market. Analysts estimate the drug generated over $8 billion in revenue last year. Critics, however, point to a Senate investigation that found Novo Nordisk spent $2.2 billion on marketing in the US between 2020 and 2022, while lobbying against price controls.
The human cost is starker. A 2023 study published in JAMA Internal Medicine found that one in five American patients with type 2 diabetes skipped doses of Ozempic due to cost, leading to preventable hospitalisations. 'This is not a market failure. It is a system designed to extract maximum profit from the sick,' said Dr. Michael Fine, a former health official in Rhode Island.
The UK's call for action comes as the World Health Organisation considers a resolution on equitable pricing. But with the pharmaceutical industry's deep pockets and lobbying power, don't expect change tomorrow. As one industry insider told me: 'The suits will fight tooth and nail to keep this gravy train rolling.'
