Study: Monthly production cost of semaglutide could be as low as $3

A groundbreaking study published in the renowned journal 'JAMA Network Open' sheds new light on the economics of producing semaglutide-based drugs like Ozempic and Wegovy. Scientists from the University of Liverpool, Yale University, and other centers in the UK, USA, and the Republic of South Africa analyzed the manufacturing costs of a monthly dose of this popular drug. According to their estimates, the cost of production, packaging, and distribution ranges from $0.75 to $2.17 US dollars, with an average of $1.30. The key is the cost of the active ingredient itself, estimated at just $0.89 per month of therapy. „These drugs don’t have to be expensive. We’ve shown they can be produced for a fraction of the current price and still make a profit.” (These drugs don't have to be expensive. We've shown they can be produced for a fraction of the current price and still make a profit.) — Andrew Hill, researcher at the University of Liverpool This discovery stands in stark contrast to current retail prices, which in the United States exceed $900 per month, posing a significant access barrier for millions of patients. Semaglutide, belonging to the class of GLP-1 analogs, is protected by Novo Nordisk's patents until the mid-next decade in most key markets. The high prices of original drugs are justified by corporations based on the costs of years of research and development that preceded their market introduction. Parallel to the scientific publication, the drug manufacturer, the Danish company Novo Nordisk, took concrete action in one European market. According to reports from the Spanish newspaper 'La Razón', the corporation announced a voluntary price reduction for Ozempic and Wegovy in Spain. This decision aims to facilitate access to treatment for patients with type 2 diabetes and obesity. It is a clear response to growing social pressure and the discussion about high treatment costs, which is taking place not only in the media but also among payers, i.e., public and private health insurers. This move shows that pressure for price reductions is not just an academic debate but translates into real business decisions, at least in individual jurisdictions where regulators or the market exert strong influence.

In Poland, the topic was picked up by the portal telepolis.pl, publishing an article titled 'Ozempic for 11 zł per month in injections and 59 zł in tablets. This is a revolution.' „Ozempic for 11 zł per month in injections and 59 zł in tablets.” (telepolis.pl) — This title misleadingly suggests that the drug Ozempic is already available to Polish patients for the stated, very low amounts. In reality, the portal makes a speculative extrapolation of the international study's results, converting the estimated production cost (about $3) into a potential future retail price for a generic drug in Poland, after accounting for margins and taxes. Currently, Ozempic in Poland is a reimbursed drug for specific, limited indications, and its price outside of reimbursement remains high. Researchers involved in the cost analysis emphasize that their work aims to prepare the ground for future, cheap generics. The expiration of Novo Nordisk's patents, which in most countries will occur around 2031, will open the door for generic drug manufacturers. Then, according to scientists, the monthly cost of therapy for patients could drop to a level of a few dollars, radically increasing treatment accessibility, especially in middle- and low-income countries. The current situation in the Spanish market, where the manufacturer itself decided to lower prices, may be a harbinger of broader changes in pricing strategy, forced by growing awareness of real production costs and social expectations.