Novo Nordisk Agrees to IRA's Fair Pricing for Key Medications

Novo Nordisk announced it will adhere to the U.S. Inflation Reduction Act's fair pricing for its diabetes and obesity drugs, effective January 2027. The decision comes as a part of a price negotiation mandated under President Biden's 2022 legislation affecting 15 medications, primarily serving Medicare beneficiaries.

In a pivotal decision, Novo Nordisk has agreed to the maximum fair pricing set by the U.S. Inflation Reduction Act (IRA) for its key diabetes and obesity drugs, including Ozempic, Wegovy, and Rybelsus. This pricing will be effective from January 2027.

The pricing decision stems from the price negotiation process initiated under President Biden's IRA, aimed at reducing costs for expensive medications in the Medicare program. Novo Nordisk's drugs are among 15 selected for this process, significantly impacting Medicare's budget for individuals aged 65 and older or those with disabilities.

Novo Nordisk revealed these plans in its recent quarterly earnings report, marking a crucial step in the ongoing efforts to make essential medications more affordable in the United States.

(With inputs from agencies.)