Medicare's Price Battles: Drugs and Dollars

The U.S. government targets 15 expensive drugs, including Ozempic and Wegovy, for price negotiations under the Inflation Reduction Act. Despite pharmaceutical opposition citing innovation risks, the negotiations will affect one-third of Medicare Part D spending. Novo Nordisk's drugs remain controversial amidst growing financial and political scrutiny.

The U.S. government has listed 15 high-cost drugs, including Novo Nordisk's Ozempic and Wegovy, for Medicare price negotiations slated for 2027. This move falls under the Inflation Reduction Act and seeks to curb expenses in the Medicare health program catering to seniors and individuals with disabilities.

The selection, representing a third of Medicare Part D's prescription drug spending, aims to address cost concerns amid fierce opposition from pharmaceutical companies. Industry leaders argue the negotiation program risks stifling innovation and have called for revisions in the timeline for small molecule drug negotiations.

Amidst the controversy, Novo Nordisk's stock faced a decline due to inclusion on the list. The company expressed dissatisfaction with the government's price-setting mechanisms but showed willingness to engage with the incoming administration for solutions benefitting patients.

(With inputs from agencies.)