The news: Novo Nordisk is partnering with Costco to offer Costco members Ozempic and Wegovy for $499 per month—about half off what the medications cost patients without insurance. Executive members and people with Costco Citibank credit cards will also get a cash back reward. Members with a prescription are eligible for the discounted price at over 500 Costco pharmacies across the US.
Why it matters: The market for popular GLP-1 medications is becoming a price war. On one side, companies are selling cheaper, compounded versions directly to customers (D2C). On the other side, the main GLP-1 drugmakers, Novo and Eli Lilly, are competing by lowering the prices of their brand-name medications Ozempic and Wegovy.
Novo Nordisk is fighting for customers who pay for the drugs themselves by offering discounts through its own pharmacy and by partnering with online doctors and major grocery and drugstore chains.
Our take: GLP-1 drugmakers are targeting consumers whose health plans have dropped coverage or added new coverage restrictions. Many of these consumers will still ante up for their prescription cost out-of-pocket, perhaps likening it to an expensive gym membership, weight loss program, or other expensive, discretionary lifestyle purchases.