Warren, others urge government to allow generics to Novo's blockbuster GLP-1s ahead of CEO hearing
head of a Senate hearing centered on high prices for Novo Nordisk’s in-demand semaglutide medications, lawmakers are pressing the government to use its “march-in” rights and allow generic versions of the drugs to enter the market.
Elizabeth Warren, D-Massachusetts, Rep Lloyd Doggett, D-Texas, and other legislators Eleanor Holmes Norton, Jeffrey A. Merkley, Sheila Cherfilus-McCormick, JD, Ro Khanna, Pramila Jayapal, Cori Bush, Mark Pocan, Congresswoman Jan Schakowsky, Rashida Tlaib, Mark Takano, Rosa L. DeLauro, Greg Casar, and Barbara Lee penned a letter to secretary of the U.S. Department of Health and Human Services (HHS), Xavier Becerra, urging the agency to use its authority to dole out licenses to generic semaglutide makers in order to promote competition and bring down prices.
United States Senate, U.S. House of Representatives
Manufacturers will frequently cite the cost of innovation and the need to recoup research and development costs as the reason for charging sky-high prices. Yet, time and again, this is debunked. In the case of Ozempic and Wegovy, the manufacturer has earned over $38 billion in revenue from these two drugs and Goldman Sachs Research predicts revenue will reach $100 billion within this decade.11 Meanwhile, last year, the manufacturer spent nearly twice as much on enriching its shareholders with stock buybacks and dividends ($8.95 billion) than on research and development ($4.71 billion).
“By utilizing your competitive licensing authority to permit generic competitors to Wegovy and Ozempic, you can stabilize supplies at a time of enormous demand and lower outrageous prices that have severely limited access to these life-changing drug,” the lawmakers wrote.
"March-in" rights were introduced as part of the Bayh-Dole Act of 1980, enabling the government to grant licenses for any patented invention that is “used or manufactured by or for the United States” under certain circumstances. The move has never been used despite numerous attempts to pressure the government into using the legal authority.
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