Medicare Price Negotiations Target Diabetes and Weight-loss Drugs

Novo Nordisk's Ozempic and Wegovy are among 15 drugs targeted for Medicare price negotiations in 2027. The U.S. aims to cut costs for widely used medications, under the Inflation Reduction Act. Companies must decide by February 28 if they'll join negotiations, with past cuts reaching up to 79%.

Novo Nordisk's diabetes drug Ozempic and its weight-loss counterpart Wegovy are now part of a group of 15 medications chosen for Medicare price negotiations scheduled for 2027, as announced by the U.S. government on Friday.

The list also features Pfizer's cancer treatments Ibrance and Xtandi, GSK's Trelegy Ellipta for asthma and COPD, Teva's Austedo for Huntington's disease, and Abbvie's Linzess for irritable bowel syndrome. These drugs rank among the highest expenditures for Medicare, particularly for those aged 65 and older or with disabilities.

Pharmaceutical companies have until February 28 to decide if they will engage in the negotiation process, which was established by the Inflation Reduction Act signed by President Biden in 2022. This initiative marks the second phase of price negotiations, following a successful round last year that saw price reductions between 38% and 79% for 10 major prescription drugs starting in 2026.

(With inputs from agencies.)