Medicare's Landmark Price Negotiations Target Big Pharma

Fifteen drugs, including Novo Nordisk's Ozempic and Wegovy, are slated for Medicare price negotiations under the Inflation Reduction Act. Makers have until February 2027 to negotiate, following significant cuts for 10 drugs in 2026. This initiative impacts a third of Medicare Part D spending.

The U.S. government has set its sights on negotiating drug prices for 15 high-cost medications, including Novo Nordisk's diabetes treatment Ozempic and weight-loss solution Wegovy, for 2027, as part of Medicare's cost-saving efforts.

The targeted drugs, which are heavily utilized by Medicare beneficiaries, feature major brands like Pfizer, GSK, Teva, and Abbvie, reflecting the administration's strategy to curb rising pharmaceutical expenditures.

Under President Biden's Inflation Reduction Act, these negotiations represent the latest wave of measures, building on previous successful price reductions that brought significant savings to Medicare users. The initiative underscores a broader attempt to reduce healthcare costs amid concerns over national deficits.

(With inputs from agencies.)