Medicare Price Negotiations Target Novo Nordisk's Blockbuster Drugs

The U.S. government targets Novo Nordisk's drugs, including Ozempic and Wegovy, for Medicare price negotiations in 2027. Despite opposition from the pharmaceutical giant and other companies, these medications are part of the second wave under the Inflation Reduction Act to reduce costs for senior citizens.

In a move aimed at cutting costs for Medicare beneficiaries, the U.S. government has included Novo Nordisk's renowned diabetes and weight-loss drugs, Ozempic and Wegovy, among 15 medications targeted for price negotiations set for 2027.

These efforts are part of President Biden's Inflation Reduction Act, seeking to curb expenses within the Medicare program for seniors and individuals with disabilities. The initiative follows a successful negotiation last year which reduced prices for ten other high-cost drugs by up to 79%, effective 2026.

Despite the program's intentions, pharmaceutical companies have pledged to challenge the law, citing concerns over innovation stifling. Novo Nordisk is actively opposing the price setting, with industry giants like Pfizer and AstraZeneca also expressing reservations about the potential impacts on drug accessibility and development.

(With inputs from agencies.)