Sept 23 (Reuters) - Novo Nordisk's blockbuster diabetes

drug Ozempic will be eligible for U.S. government's price

negotiations in less than a year based on current criteria, the

Danish drugmaker's CEO Lars Fruergaard Jorgensen said in his

written testimony on Monday.

Jorgensen is set to testify before a Senate committee on

Tuesday in a hearing focused on U.S. prices for its widely

popular Ozempic and weight-loss drug Wegovy.

WHY IT'S IMPORTANT

The comments confirm what Wall Street analysts have been

saying: that the 2027 list of price negotiations will include

Novo's Ozempic. Last week, another executive from

Novo had said at an industry conference that Ozempic would "very

likely" be on the 2027 list. The list will be announced in

February of 2025.

BY THE NUMBERS

A month's supply of Ozempic has a U.S. list price of

$935.77, while Wegovy lists for $1,349.02 per month, according

to the drugmaker's website, although most consumers pay less

based on their insurance plans.

CONTEXT

The Inflation Reduction Act of 2022 allows Medicare to

negotiate prices for prescription drugs that had been

particularly expensive for the federal health program, which

covers millions of Americans aged 65 and older as well as the

disabled.

Novo's Ozempic and weight-loss drug Wegovy, both hugely

popular drugs, have faced criticism from lawmakers over their

high prices in the United States.

Jorgensen said in his written testimony that the net price

of Ozempic - the amount that Novo is actually paid for the

medicine - has declined by about 40% since its introduction in

the United States, and the net price of Wegovy has similarly

declined since its launch less than three years ago.

He added that under current market conditions, Novo expects

that net prices will continue to decline for both Ozempic and

Wegovy.