Novo Nordisk Expects U.S. Drug Price Hikes to Get Tougher
15 September 2018 - 1:41AM
Dow Jones News
By Nina Trentmann
Danish pharmaceutical company Novo Nordisk A/S (NOVO-B.KO)
expects it will become more difficult to realize list-price
increases for drugs sold in the U.S., Chief Executive Officer Lars
Fruergaard Jorgensen said Friday.
"Going forward, price increases will become harder," he said,
attributing the continued pricing pressure facing the company in
the U.S. to rising competition.
"It is not the political environment that has changed [in the
U.S.], but [the] competition has increased," he said.
Novo Nordisk in 2016 pledged to keep price increases for drugs
sold in the U.S. below 10% annually. Mr. Jorgensen didn't provide
more specifics on the company's U.S. pricing policy, but did say
the goal is to grow volume and market share.
The Danish company commands a 41% share of the U.S. insulin
market, according to the CEO.
Novo Nordisk has submitted ideas on overhauling the U.S.
drug-pricing system after the Trump administration invited major
pharmaceutical companies operating in the country to share their
ideas.
But Mr. Jorgensen notes that "the complexity of the system means
that there is not one simple change you can do."
Write to Nina Trentmann at nina.trentmann@wsj.com,
@Nina_Trentmann
(END) Dow Jones Newswires
September 14, 2018 11:26 ET (15:26 GMT)
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