Novo Nordisk CEO Calls for Radical Shift in Australia’s Approach to Chronic Disease
Australia faces a “health challenge of the century” – chronic disease, with obesity as a key driver. That’s the message delivered by Novo Nordisk CEO Mike Doustdar at the National Press Club in Canberra on March 16, 2026. But his address wasn’t simply a pitch for pharmaceutical solutions; it was a call for systemic change, urging collaboration between government, industry, employers, and individuals.
Beyond the Drugs: A Holistic Approach
Novo Nordisk, a pharmaceutical company whose income exceeds the GDP of its home nation Denmark, is increasingly positioning itself as a partner in preventative healthcare. Doustdar emphasized that medicine alone won’t solve the crisis. He highlighted the company’s unique structure – over 70% controlled by a not-for-profit foundation dedicated to long-term health solutions – as evidence of this commitment.
“I’m here to propose that something far more ambitious has to be done,” Doustdar stated. “I believe Australia can turn into the world’s first country to truly bend the obesity-led chronic disease curve, not just manage it, not just treat it, but actually prevent it at scale.”
The GLP-1 Debate: Access and Affordability
A significant portion of the discussion centered on GLP-1 class drugs, Novo Nordisk’s blockbuster medications revolutionizing diabetes treatment and showing promise for other conditions. Currently in Australia, these drugs are primarily subsidized for diabetes treatment only. While the Pharmaceutical Benefits Advisory Committee (PBAC) recommended PBS subsidy expansion for adults with cardiovascular disease and obesity, contingent on price reductions, progress is ongoing.
The cost remains a barrier. Australians currently pay between $4,000 and $5,000 annually for these drugs when not covered by the PBS. Doustdar acknowledged the expense, attributing it to years of research and development, but stressed that treating obesity today can save money in the long run. He noted Australia already has relatively good pricing compared to other nations, and that prices are decreasing with increased volume.
Doustdar also pointed out that medicines account for only 15% of overall healthcare expenditure, suggesting inefficiencies elsewhere in the system need addressing. He encouraged health ministers to scrutinize spending across the board.
Preventative Measures: A Multi-Pronged Strategy
Doustdar outlined a comprehensive strategy for prevention, including:
- Faster PBS access: Reducing the average 466-day wait time for new drugs to be listed on the PBS.
- Dedicated obesity budget: Establishing a separate funding stream for obesity prevention and treatment.
- Modernized food labeling: Improving clarity and accuracy of nutritional information.
- Responsible marketing: Enforcing stricter regulations on the marketing of unhealthy foods.
- Healthy urban planning: Prioritizing green spaces and active transportation infrastructure.
He also advocated for workplace health programs and community-based initiatives, emphasizing the importance of collaboration across sectors.
Logan City Pilot Program: A Community-Focused Approach
Novo Nordisk is actively investing in preventative programs, exemplified by the $3 million “Feel Good Futures Program” launched in Logan, Queensland. This initiative, part of the company’s global Cities for Better Health program, focuses on improving quality of life, physical activity, and access to healthy food in disadvantaged urban communities. The program is designed by the community, with Novo Nordisk providing support.
The Role of Employers and Individuals
Doustdar urged employers to recognize the link between workforce health and economic productivity, offering health checks and promoting healthy lifestyles. He also encouraged individuals to prioritize their own health, starting with a routine check-up.
FAQ
Q: What is Novo Nordisk’s position on making GLP-1 drugs available to children?
A: Novo Nordisk is testing and trialing GLP-1s on adolescents to ensure safety. They support providing help if needed, while prioritizing healthier environments and lifestyles for young people.
Q: What percentage of Australia’s health budget is currently spent on prevention?
A: Currently, Australia invests just over 3% of its health budget on prevention, which is mid-table compared to other OECD countries.
Q: What is the PBAC and what role does it play in drug subsidies?
A: The Pharmaceutical Benefits Advisory Committee (PBAC) advises the Australian government on which medicines to subsidize through the Pharmaceutical Benefits Scheme (PBS).
Q: What is the current wait time for drugs to be approved for PBS subsidy?
A: The average wait time is 466 days.
Did you realize? Novo Nordisk’s market value in April 2024 exceeded $570 billion – more than the entire economy of Denmark.
Pro Tip: Small, consistent changes to your lifestyle – such as incorporating more physical activity and making healthier food choices – can have a significant impact on your long-term health.
What are your thoughts on the role of government and industry in tackling chronic disease? Share your comments below!
