Novo Nordisk says US Inflation Reduction Act will hurt innovation

The new legislation meant to lower drug costs in the US, among other things, will actually end up restricting access to treatments, warns the Danish drugmaker.

US President Joe Biden has taken up the fight against high drug prices in the US | Photo: Mandel Ngan/AFP/Ritzau Scanpix

Novo Nordisk is in firm opposition to new legislation in the US, the Inflation Reduction Act, which among other things enables the US national health insurance program, Medicare, to negotiate and lower drug prices, reports Danish financial media Finans.

With new powers coming into effect in 2026, Medicare can require drugmakers to pay rebates should companies raise drug prices faster than inflation. An increasing variety of drugs could be affected by the law, including Novo Nordisk’s blockbuster diabetes drug, Ozempic, Danish business media Finans cites Financial Times reporting.

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