Wegovy Drug Negotiations Fail, Leaving Canadians Without Coverage

Negotiations to secure public coverage for the weight-loss drug Wegovy in Canada have stalled, as Novo Nordisk, the Danish parent company, has declined to continue talks. This decision means that many Canadians will not have access to the medication under public health plans, despite earlier discussions aimed at reducing its high cost.

Canada’s Drug Agency, which evaluates the cost-effectiveness of medications, had requested the pan-Canadian Pharmaceutical Alliance to negotiate pricing with Novo Nordisk. According to a statement on the alliance’s website, the negotiations have “concluded without agreement” as the manufacturer opted not to engage further.

At its current list price, Wegovy is estimated to cost approximately $5,066 per patient per year, translating to about $400 monthly for the recommended maintenance dose of 2.4 mg weekly. A spokesperson from Novo Nordisk confirmed to Global News that while the drug has received a recommendation from Canada’s Drug Agency, public reimbursement is not being pursued at this time.

In its July recommendation, the agency stated that Wegovy should be available for public reimbursement under specific conditions related to chronic weight management. This would apply to patients with a body mass index (BMI) of 27 kilograms per square metre or greater, who also have pre-existing cardiovascular conditions. Such conditions may include narrowed arteries that impede blood flow to vital organs.

To qualify for reimbursement, patients would need to be following a reduced-calorie diet and increasing physical activity. Additionally, the agency emphasized that a price reduction would be necessary for public coverage to be viable. The Drug Agency’s assessments indicate that at the current price, Wegovy may cost public drug plans up to $600 million over the next three years, with potential costs soaring to $3.5 billion if uptake increases significantly.

Ian Patton, director of advocacy and public engagement at Obesity Canada, highlighted the challenges surrounding access to weight-loss medications like Wegovy. He noted that while these drugs are not a “magic bullet,” they can be life-changing for many individuals. He expressed concern that the breakdown in negotiations means that Canadians will continue to face barriers to accessing effective treatments.

Patton pointed out that semaglutide medications, which include Wegovy, Ozempic, and Zepound, have received approval for use in Canada under certain conditions. However, the ongoing issue remains centered on public reimbursement, which continues to limit access for patients in need.

Despite the current situation, Patton remains optimistic about the possibility of generic versions of these medications becoming available in Canada, potentially providing more affordable options for patients.

In a separate development, a recent announcement in the United States highlighted efforts by former President Donald Trump to lower prices for similar treatments through the Medicare and Medicaid programs, illustrating contrasting approaches to healthcare access in North America.

The situation surrounding Wegovy underscores the complexities of drug pricing and healthcare access in Canada, where public reimbursement remains a contentious issue. As negotiations remain closed, many Canadians are left waiting for improved access to effective obesity treatments.