During 2023, the regions (healthcare regions in Denmark) have paid full subsidies for more expensive Ozempic pens, which have had significant economic consequences. According to an analysis of data from medstat.dk carried out by the Competition and Consumer Authority, this may have resulted in an additional bill of up to 140 million Danish kroner for the regions.
The problem arises because packages with three pens are not included in the same substitution group as packages with one pen. A substitution group consists of medicines that can replace each other, and pharmacies are required to offer the cheapest medicine in this group. Novo Nordisk only sells Ozempic in packages with one pen in Denmark, while packages with three pens are imported by parallel importers from other countries.
Mie la Cour Sonne, head of the Competition and Consumer Authority, explains that Novo Nordisk has a pricing agreement for their products in Denmark. However, there has been a significant increase in the price of parallel-imported Ozempic in 2023. This may be partly due to supply difficulties in other countries where Novo Nordisk is not subject to a pricing agreement.
To address the issue, the Competition Council proposes to introduce generic prescribing in Denmark, which is already common practice in most other European countries. Generic prescribing means that doctors prescribe the active pharmaceutical ingredient instead of the brand name, ensuring that patients receive the cheapest subsidy-eligible medicine.
If this change is implemented, patients will not be able to receive full subsidies for three-pen packages of Ozempic if packages with one pen are cheaper. This will create a financial incentive for patients to choose the most cost-effective solution.
Ozempic is an incredibly popular medicine that is often used frequently by many patients. This has led to the regions’ subsidies for Ozempic in 2023 amounting to approximately 1.3 billion kroner, equivalent to 16 percent of the regions’ total subsidy expenses. From 2022 to 2023, the regions’ expenses for subsidies for Ozempic increased by 30 percent.
The Competition Council has previously recommended generic prescribing, and the increasing popularity of Ozempic underscores the need to implement this change to ensure a more cost-effective subsidy scheme.