The famed Danish drug maker Novo Nordisk A/S ( NVO ) expressed disappointment on Wednesday following a recommendation by the Dutch Health Care Institute advising the Netherlands government against including the company’s popular weight-loss drug, Wegovy, in the basic insurance coverage.

The institute’s recommendation, delivered on Tuesday, cited insufficient clarity on whether Wegovy’s health benefits justify its costs.

Related: Bernie Sanders Targets High Prices of Ozempic and Wegovy In US.

Although Wegovy has proven effective for weight loss, the institute stressed the need for further research to determine the drug’s comprehensive health effects.

With an estimated 4 million people in the Netherlands potentially benefiting from Wegovy, the institute projected that government expenses could escalate to approximately 1.3 billion euros ($1.42 billion).

Notably, Wegovy is not yet available for purchase in the Netherlands, as confirmed by Novo Nordisk ( NVO ).

Last year, Novo Nordisk ( NVO ) submitted an application to Dutch authorities seeking insurance coverage for a limited patient group.

The institute also raised concerns about the global shortage of semaglutide, Wegovy’s primary ingredient, which is crucial for diabetes treatment.

“These shortages emphasize the importance of critically weighing which people have the largest benefit from a medicine,” it said.

“While we are pleased that the Dutch Health Care Institute recognizes the necessary role of medications in the fight against obesity as a chronic disease, we are obviously disappointed in their initial decision,” Reuters report added, citing a Novo Nordisk ( NVO ) spokesperson’s email.

U.S. pharmacy claims data analysis reveals that only one in four patients prescribed Novo Nordisk’s weight-loss drugs, Wegovy and Ozempic, continue their treatment after two years.

The data provided to Reuters highlights a significant decline in long-term adherence to these medications.

Price Action: NVO shares are down 4.29% at $134.82 at last check Wednesday.

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