(NEXSTAR) – A trade deal between the U.S. and the European Union is expected to impose a 15% tax on pretty much all goods imported from Europe, from fancy French wines to sleek German cars and in-demand pharmaceuticals.
Some of the most recognizable brand names that could be impacted include Ozempic and Wegovy, two injectable drugs that have grown popular in recent years for their abilities to treat diabetes and promote weight loss. Both are made by Novo Nordisk, a Danish company.
But the European drugs are extremely popular here in the U.S. Wegovy – the version of the drug that’s FDA-approved to treat obesity – has about 200,000 weekly prescriptions in the U.S., according to Novo Nordisk.
Even before the new tariffs, many people have found the medications to be prohibitively expensive. Without insurance, they cost about $500 a month.
It’s usually cheaper for those who can get the drug covered by their health plan. Novo says of its patients who have coverage in the U.S., 85% pay $25 or less per month.
After the tariffs take effect, the prices of importing these medications into the U.S. will go up, but who will pay that tax isn’t straightforward. Rena Conti, an associate professor at Boston University’s Questrom School of Business, told NBC News that drug companies could just raise their price list right away to offset the higher cost. Those without insurance might notice the sticker price change, but those with coverage could end up paying more in higher premiums.
“The big picture is: The cost of imported drugs is about to become more expensive for all Americans,” Joe Brusuelas, principal and chief economist for RSM US, said in an interview with Axios.
Other name-brand drugs like Botox, Viagra and Keytruda (a cancer medication) are also manufactured in Europe and impacted by the tariffs. Some drug generics were supposed to be carved out of the deal, but details were still pending as of Thursday.
When asked how Ozempic and Wegovy would be impacted by the new 15% tariff, a Novo Nordisk spokesperson told Nexstar the company “remains focused on improving patient access and affordability, and we will continue to work to find solutions that help people access the medication they need.”
The Associated Press contributed to this report.
