As Americans shell out close to $1K monthly on the blockbuster weight loss medication Ozempic, a new study reveals that manufacturing a month’s supply costs less than $5. This massive profit margin has powered drugmaker Novo NordiskNVO

to a $12B profit last year — and the $573B market cap that now makes it Europe’s most valuable company.

• To further enhance its profit margins, Novo has been investing billions in expanding production capacity, which should boost supply and widen access to the drug during its exclusive patent period.
• The only potential factor to reduce prices before the patent expires is political intervention — the Biden administration has successfully brought down some drug prices by enabling Medicare to negotiate prices with pharmaceutical companies.

The price is wrong: While some insurers are beginning to offer coverage for patients with heart-related conditions, many Americans may still face significant out-of-pocket expenses for Ozempic. Nearly 60% of Americans earning over $250K/year are willing to pay more than $300/month for a weight loss drug — while those earning under $75K/year are only willing to pay up to $50/month out of pocket.