The paper models a competitive (cheaper) and conservative (more expensive) pricing. The conservative model assumes a 50% profit for Ozempic (the competitive mod

The paper models a competitive (cheaper) and conservative (more expensive) pricing. The conservative model assumes a 50% profit for Ozempic (the competitive model assumes 10%). These are margins that cannot realistically sustain drug development in the current western regulatory regime. At the same time, its quite clear that the cost of drugs, particularly in the US is out of control. In that sense, focusing on the fact that a company that received the technical data package and plant for manufacturing Ozempic for free could then indefinitely sell Ozempic for $5 a month is a red herring, and not likely to lead to any fruitful change. The price differential between US pricing and say... UK pricing ($350 a month for injectable Ozempic vs ~$80 a month) is enough to hammer in on. On a side note, what I found interesting is that while the article says a injectable Ozempic can cost ~1k a year, the actual study marks it at more like $350 a month.