Novo Sees U.S. Drug Prices Falling on Medicare Changes (3)

Lower U.S. prices continue to be a thorn in the side of Novo Nordisk A/S, the world’s biggest maker of diabetes drugs.

Lars Fruergaard Jorgensen

Photographer: Chris Ratcliffe/Bloomberg

The Danish pharma company expects changes in the U.S. Medicare program and weakness in the insulin market to push down average prices after rebates in 2019, according to a statement on Wednesday. Novo plans to cut jobs and spending in some areas, Chief Executive Officer Lars Fruergaard Jorgensen told reporters on a call.

“When you’re in a lower-growing environment than we were years back, you cannot just add resources,” Jorgensen said.

Novo fell as much as 5.2 ...