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    Novo Nordisk’s $1,000 diabetes drug Ozempic can be made for less than $5 a month, study suggests

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    The blockbuster diabetes drug Ozempic could be manufactured for less than $5 a month, even as Novo Nordisk charges almost $1,000 per month for the injection in the U.S. before insurance, a new study suggests.
    Researchers found that a month’s supply of the treatment could be made for an estimated 89 cents to $4.73, figures that include a profit margin.
    The study raises more questions about the hefty price tag of the top-selling diabetes treatment along with similar drugs for weight loss, which are all part of a new class of drugs called GLP-1s.

    A box of Ozempic and contents sit on a table in Dudley, North Tyneside, Britain, October 31, 2023. 
    Lee Smith | Reuters

    The blockbuster diabetes drug Ozempic could be manufactured for less than $5 a month, even as Novo Nordisk charges close to $1,000 per month for the injection in the U.S. before insurance, a study released Wednesday suggests.
    The study, from researchers at Yale University, King’s College Hospital in London and the nonprofit Doctors Without Borders, raises more questions about the hefty price tag of the top-selling diabetes treatment and similar drugs for weight loss, which are all part of a new class of treatments called GLP-1s.

    Demand for those medicines has soared over the last year, even as more insurers drop them from their plans due to cost, leaving some patients unable to afford the drugs. 
    The study also comes after years of political pressure on Novo Nordisk and other drugmakers to slash high costs of diabetes care, especially insulin. 
    Ozempic can generally be produced for less than various forms of insulin, according to the study published in JAMA Network Open. 

    More CNBC health coverage

    Researchers found that a month’s supply of the treatment could be manufactured for an estimated 89 cents to $4.73. They evaluated manufacturing costs for the weekly injection along with a profit margin with an allowance for tax to produce those estimates, which they call “cost-based prices.” 
    Novo Nordisk’s list price for a monthly package of Ozempic is $935.77 before insurance and other rebates. The findings suggest that GLP-1s “can likely be manufactured for prices far below current prices, enabling wider access,” the researchers concluded. 

    In a statement on Wednesday, Novo Nordisk declined to provide production costs for Ozempic and its weight loss drug counterpart Wegovy. But the Danish drugmaker noted that it spent almost $5 billion on research and development last year, and will spend more than $6 billion on a recent deal to boost manufacturing to meet demand for GLP-1s.
    It also said 75% of its gross earnings go to rebates and discounts to ensure patients have access to its products. 
    The company also said out-of-pocket costs for Ozempic depend on a patient’s insurance coverage. Patients with private or commercial coverage for Ozempic can access a savings card and pay as little as $25 for a one-month, two-month or three-month supply of the treatment for up to 24 months. 
    Separate research from the University of Liverpool and other researchers has found that Wegovy could be produced for $40 a month.
    A survey released this month from Evercore ISI found that more than half of people currently taking a GLP-1 said they are paying a monthly price of $50 or less out of pocket. Nearly 75% of respondents who used to take one of the drugs said they spent the same amount.

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    Hyundai considering hybrid vehicle production at $7.6 billion Georgia EV plant

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    Hyundai Motor is considering producing hybrid or plug-in hybrid electric vehicles at a $7.59 billion plant in Georgia in addition to all-electric vehicles.
    The reassessment comes amid slower-than-excepted adoption of EVs, as well as the Biden administration revising emissions rules.

    Hyundai CEO Jae Hoon Chang (left) and José Muñoz, Hyundai president and global chief operating officer, attend the 2024 New York International Auto Show
    Michael Wayland | CNBC

    NEW YORK – Hyundai Motor is reevaluating its plans to exclusively produce all-electric vehicles at a new plant under construction in Georgia, an executive told CNBC on Wednesday.
    José Muñoz, Hyundai president and global chief operating officer, said the company is evaluating whether or not to produce hybrid or plug-in hybrid electric vehicles at the $7.59 billion plant in addition to all-electric vehicles.  

    “We are now getting ready for a ramp-up on electric vehicles and then we are evaluating if we need to maybe add some additional technologies into the plan depending on the market evaluation,” Muñoz said on the sidelines of the New York International Auto Show.
    The reassessment comes amid slower-than-excepted adoption of EVs, as well as the Biden administration revising emissions rules to better take into account hybrid and plug-in hybrid electric vehicles rather than a focus on all-electric vehicles.
    Hyundai is in the middle of investing $12.6 billion in Georgia, including for the new Hyundai Motor Group Metaplant America site in Bryan County and battery manufacturing through joint ventures with fellow South Korea-based companies LG Energy Solution and SK On, which will be a separate facility
    Muñoz said Hyundai remains committed to EVs but also knows hybrids and plug-in hybrid vehicles may be better for some consumers.  
    “Everything is on the table,” Muñoz said. “We will adjust to the market demand and, for the time being, we are on track for what the regulators are requesting.”

    Hyundai on Wednesday revealed a refreshed Tucson crossover that will be offered as a traditional gas engine, hybrid and plug-in hybrid electric vehicle.
    “I think the PHEV is a key strategic topic for us. We’ve been one of the pioneers on PHEV and I think we want to take advantage of that,” Muñoz said. “But hybrid is very important … our hybrid production in growing. There’s a high demand for it. So you’re going to see an increase in the mix of hybrids in Hyundai as well.”

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    Largest U.S. sportsbooks join forces to tackle problem gambling

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    The nation’s largest online operators are coming together to form a group dedicated to responsible gaming practices.
    The seven operators — FanDuel, DraftKings, BetMGM, Penn Entertainment, Fanatics Betting & Gaming, Hard Rock Digital and bet365 — will form the Responsible Online Gaming Association.
    For the first time ever, the companies will share information about customers excluded because of problem gambling.

    Seven of the nation’s largest gaming companies are joining forces to create a trade group to promote responsible gaming, and for the first time ever, will share information about problem gamblers.
    The seven operators — FanDuel, DraftKings, BetMGM, Penn Entertainment, Fanatics Betting & Gaming, Hard Rock Digital and bet365 — will form the Responsible Online Gaming Association, or ROGA, the group announced Wednesday.

    The members account for more than 85% of the legal online betting market in the United States. Collectively they have pledged more than $20 million to fund ROGA.
    “I’m incredibly excited to move this forward and to really do some impactful things and to really expand the knowledge through the research and to create these evidence-based best practices and to really empower players with information,” said Jennifer Shatley, executive director of ROGA.
    ROGA members commit to work together on issues ranging from education, responsible gaming best practices, conscientious advertising and marketing across the industry.
    The new group will also create an independent clearinghouse, or database, that will allow them to share key information related to protection of consumers, though the details on how it would work aren’t yet clear.

    Justin Sullivan | Getty Images

    ROGA says it will create a certification program to assess members’ responsible gaming efforts and provide an incentive for operators to participate.

    The new consortium comes as sports betting, both online and in retail outlets, has seen dramatic growth across the nation since 2018. Thirty-eight states and Washington, D.C., now offer legal sports wagering.
    This year, a record number of Americans bet on the Super Bowl. Online transactions totaled nearly 15,000 per second, doubling last year’s peak, according to geolocating platform GeoComply.
    But as gambling has become more mainstream — and as advertising for sportsbooks spans television, streaming and social feeds — so, too, have headlines involving betting scandals and sports.
    In recent days, Los Angeles Dodgers superstar Shohei Ohtani has found himself at the center of a $4 million betting scandal involving his interpreter and an illegal bookie. Ohtani insists he’s never bet on sports. The NBA is investigating Toronto Raptors player Jontay Porter for irregularities around wagering. And U.S. Integrity, a tech firm working to combat illicit betting in college sports, flagged anomalies around the betting lines for Temple University men’s basketball games.
    A result of those claims: The potential to provoke outrage and public criticism that could become an inflection point for the U.S. gambling industry. There’s also the potential for gambling’s explosive growth to undermine integrity in sports and entice bettors into addiction.

    Problem gambling

    An estimated 2 million U.S. adults meet the criteria for a severe gambling problem, according to the National Council on Problem Gambling. Another 5 million to 8 million U.S. adults are considered to have a mild or moderate gambling problem.
    Problem gambling prompted regulatory crackdowns in Europe and especially in the United Kingdom over the last couple years, impacting sportsbooks’ profitability and changing the way they conduct business.
    There has been a concerted effort in the United States for the gambling industry to police itself and ward off harsher regulatory frameworks.
    U.S. Rep. Paul Tonko of New York is introducing national legislation that would crack down on what he calls “a public health crisis.” Tonko’s “Supporting Affordability and Fairness with Every Bet Act,” which he introduced last week, would regulate gambling advertising, limit the number and size of deposits, and restrict how artificial intelligence is deployed to acquire customers.
    “Your going to have a lot more people saturated with this opportunity, with all these clever concepts of bonus bets, free bets and celebrity spokespersons,” Tonko told CNBC.
    An influx of gamblers will result in a dramatic increase in the number of people struggling with addiction, he said.
    Some states have slapped operators with fines over gaming violations. In August, Maryland fined DraftKings $94,000 for marketing to underage players. PrizePicks reached a $15 million settlement in New York for operating illegally. In Indiana, the gaming commission fined FanDuel after eight people used illegally obtained debit cards to fund their betting accounts, causing “great harm” to partners on shared bank accounts, according to the Indiana Gaming Commission Chairman Milton Thompson.

    Customer protections

    Some gambling insiders are skeptical of ROGA, suspicious of what they consider a marketing stunt to address a public relations problem.
    Caesars, which is noticeably absent from the group founding ROGA, told CNBC it’s learned best practices from 35 years grappling with responsible gaming.
    “While we applaud all efforts to ensure online gaming is both operated and marketed in a responsible manner, we are confident in our [own] Responsible Gaming approach,” the company said in a statement.
    Caesars said it’s solely focused on the 21-and-older crowd and does not permit anyone younger than that to sign up for a Caesars rewards account, even in states like Rhode Island or Kentucky where 18-year-olds are permitted to wager.
    Many fantasy sports and social betting platforms that operate on a sweepstakes model permit players 18 and older, and many of Caesars’ competitors allow 18-and-up customers to play fantasy sports. Some, too, allow sports betting in that age group in the few states that permit it.
    But the industry is working to better insulate its youngest and most vulnerable customers.
    The American Gaming Association launched last March an agreement aimed at providing college-aged students protections against the marketing and advertising of sports betting.

    Silquia Patel, (R), 29, watches the game after making her bets at the FANDUEL sportsbook during the Super Bowl LIII in East Rutherford, New Jersey, U.S., February 3, 2019.
    Eduardo Munoz | Reuters

    Peter Jackson, CEO of Flutter, the parent company of FanDuel, said responsible gaming comes down to good business. Yet, he warns that as legal operators come together to improve responsible gambling, the illegal marketplace will always be willing to take wagers from problem gamblers.
    “I urge the state regulators to help us by clamping down on some of those black market operators,” Jackson told CNBC.

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