WASHINGTON (Reuters) -Novo Nordisk’s blockbuster diabetes drug Ozempic and weight-loss treatment Wegovy are among the 15 drugs targeted for Medicare price negotiations for 2027, the U.S. government said on Friday.
Other drugs on the list include Pfizer’s cancer drugs Ibrance and Xtandi, GSK’s asthma and chronic obstructive pulmonary disease (COPD) treatment Trelegy Ellipta, Teva’s Huntington’s disease treatment Austedo and Abbvie’s irritable bowel syndrome drug Linzess.
The drugs are among those that the Medicare health program spends the most on for people aged 65 and older or with disabilities.
Makers of the selected drugs will have until Feb. 28 to decide if they will participate in the negotiations.
The price negotiation process was established under President Biden’s signature Inflation Reduction Act in 2022. The 15 new drugs are the second group of medications set to undergo the process.
Last year, the U.S. government negotiated price cuts that ranged from 38% to 79% for 10 highly popular prescription drugs used by Medicare, which will be effective in 2026.
“These 15 drugs, together with the 10 drugs that Medicare already negotiated, represent about a third of Medicare Part D spending on prescription drugs,” Biden said in a statement.
Biden administration officials said all forms of dosages and strengths of drugs selected for negotiation are included. This means Novo’s blockbuster weight loss drug Wegovy – which is made with the same ingredient as Ozempic – will be included.
Since March, patients who use Wegovy for reasons in addition to weight loss – like reducing the risk of heart attack or stroke – have been covered.
Government researchers predict that the use of diabetes drug Ozempic and Wegovy for weight loss would raise the U.S. deficit over the next 10 years at its current price. Medicare spent over $4.6 billion on the drug in 2022. Novo has a list price of around $935 a month while Wegovy has a list price of around $1,350 a month, though the company says it offers discounts.
Around 2.3 million Medicare Part D patients used Novo drugs made with semaglutide over the year ended October 2024, the government said. Total gross spending by Medicare part D plans on the drugs topped $14 billion.
It’s unclear whether the administration of incoming President Donald Trump, who will take office on Monday, plans to make any changes to the negotiations, or if it even can.
Biden administration officials suggested their successors are unable to do so because the law outlines detailed selection criteria that the Centers for Medicare and Medicaid, the agency implementing the negotiations, has to follow.
(Reporting by Michael Erman in New York, Ahmed Aboulenein in Washington and Bhanvi Satija in Bengaluru; Editing by Shinjini Ganguli and Nick Zieminski)
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