A trade agreement between the U.S. and the European Union is likely to lead to a 15% tax on almost every product imported from Europe, covering everything from exquisite French wines to stylish German automobiles and sought-after pharmaceuticals.
Among the well-known brands potentially affected are Ozempic and Wegovy, two injectable medications that have gained popularity recently for their effectiveness in managing diabetes and facilitating weight loss. These are produced by Novo Nordisk, a company based in Denmark.
The European pharmaceuticals enjoy significant popularity in the U.S. Wegovy, the drug variant authorized by the FDA for obesity treatment, has roughly 200,000 prescriptions weekly in the U.S., as reported by 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.
For individuals who have the medication covered by their health insurance, it is typically cheaper. According to Novo, 85% of their insured patients in the U.S. pay $25 or less per month.
Once the tariffs are in place, the expense of importing these drugs into the U.S. will rise, although determining who bears this cost isn’t clear-cut. Rena Conti, an associate professor at Boston University’s Questrom School of Business, mentioned to NBC News that pharmaceutical companies might immediately increase their list prices to balance the added expense. Those without insurance could see changes in the sticker price, while those with coverage may encounter increased premiums.
“To sum up: The expense of imported medications is set to rise for all Americans,” stated Joe Brusuelas, principal and chief economist for RSM US, during 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.
