Negotiations that could have led to weight loss drug Wegoby being covered under Canada's public health plan are not progressing.
Wegoby's Denmark-based parent company, Novo Nordisk, had been approached about talks to lower the cost of the drug by securing coverage under Canada's public health system.
The Canadian Medicines Agency, a non-profit organization that studies the cost-effectiveness of various medicines, has asked the Pan-Canadian Pharmaceutical Alliance, which negotiates drug prices on behalf of provincial, territorial and federal governments, to speak with Novo Nordisk.
According to the Pan-Canadian Pharmaceutical Alliance website, those negotiations “ended without a deal (manufacturers refused to negotiate).”
The Canadian Medicines Agency said in a July advisory that Wigovy is expected to cost $5,066 per patient per year, based on the recommended maintenance dose for weight management of 2.4 mg weekly, or about $400 per month, at list price.
Global News has contacted Novo Nordisk for comment.
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“The Canadian Medicines Agency has recommended Wigovy, but no public reimbursement is being sought at this time,” a Novo Nordisk spokesperson said.
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“We remain committed to providing Canadians with sustainable access to obesity medicines, including future innovations.”
In a statement sent to Global News, the Pan-Canadian Pharmaceutical Alliance said a request for negotiations sent in October “was rejected by Novo Nordisk without any offers being exchanged and the file is now closed.”
“We are ready and available to re-engage with this file if they change their mind. To that end, Novo Nordisk can submit an unsolicited offer, which we would welcome.”
Canada's Medicines Agency has recommended that Wigovy, a member of the semaglutide family of drugs, be eligible for public reimbursement provided certain conditions are met regarding “chronic weight management.”
According to the recommendations, patients eligible for the proposed coverage will have a body mass index (BMI) of at least 27 kg/m2 and have pre-existing cardiovascular disease. These may include symptoms characterized by narrowing of the arteries leading to reduced blood flow to the heart, brain, or arms and legs.
The Canadian Medicines Agency said that to be eligible for Wegovy's proposed reimbursement, it should only apply if the patient is on a reduced-calorie diet and increasing physical activity for chronic weight management, reducing Wegovy's costs.
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The Canadian Medicines Agency also stated that, based on its evaluation of the health economic evidence, “Wegovy does not represent good value for the health care system at published list price. Therefore, a price reduction is necessary.”
The CDA says Wegobee's public drug plan could cost up to $600 million over the next three years, based on current list prices and projected demand in Canada. Depending on adoption, the cost could rise to $3.5 billion, he added.
Ian Patton, director of advocacy and social engagement for the Canadian Obesity Association, said weight loss drugs like Wigoby are “not a silver bullet” and while they don't solve everything for everyone, “they still work for a lot of people.”
“It can be life-changing for the people it helps, but it's expensive and for the vast majority of people it's just inaccessible unless it's covered by insurance,” Patton says.
“When we have cases like this where negotiations break down, it means that Canadians' access to these treatments will not improve for the long term.”
Patton added that while semaglutide treatments such as Wigovy, Ozempic and Zepound have been approved for use in Canada under certain conditions, it remains an ongoing issue for patients who require reimbursement under public health plans.
Patton also said he is hopeful that generic drugs that may offer more value may soon be available to Canadians.
In the United States, President Donald Trump announced an agreement in early November that would reduce the price of some of these treatments in the United States through the Medicare and Medicaid programs for eligible patients.
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