Novo Nordisk Negotiates Favorable Medicare Pricing for Semaglutide

Novo Nordisk agreed on a Medicare pricing deal for semaglutide, the active ingredient in Ozempic and Wegovy. Analysts view the deal as moderate, potentially reducing sales by $937 million but offsetting guidance cut impacts. The agreement signals a favorable negotiation under the U.S. Inflation Reduction Act.

Novo Nordisk has announced a significant pricing agreement with the U.S. Medicare program for semaglutide, the active component in its flagship medications, Ozempic and Wegovy. The agreement, under the U.S. Inflation Reduction Act, has been viewed favorably by analysts, who had anticipated more severe pricing concessions.

The finalized agreement, expected to take effect in 2027, was unveiled alongside Novo's third-quarter financial results and a revised 2025 financial outlook. While the exact terms remain undisclosed, the company noted that if the pricing had been applied this year, it would have minimally impacted sales.

Market analysts, including those from JP Morgan, estimate the potential sales impact to be around 6 billion Danish crowns ($937 million). Despite earlier market jitters, Novo's share price witnessed a recovery, reflecting the market's positive response to the news.

(With inputs from agencies.)