North Carolina urges HHS to license Novo and Lilly obesity drugs as a way to lower costs

Frustrated by the lack of access to expensive weight loss drugs, North Carolina officials are urging the Biden administration to negotiate licenses with the manufacturers so that lower-cost alternatives can be made available.

The move comes after the North Carolina State Health Plan earlier this year dropped coverage because spending topped $102 million last year mostly for two drugs made by Novo Nordisk — Wegovy and Saxenda. A third drug called Zepbound that is made by Eli Lilly was approved only last November for combating weight loss and so accounted for a small fraction of the outlay.

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In explaining the reasoning, North Carolina Treasurer Dale Folwell argued the coverage decision was forced by “corporate greed,” and that the plan “repeatedly” sought to negotiate a “fair price,” but that every offer was rejected, according to a July 29 letter he wrote to Department of Health and Human Services Secretary Xavier Becerra.

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