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Bargaining

Wegovy and Ozempic top list of 15 drugs up for next price negotiations

If the Trump admin doesn't alter the process, negotiated prices will go into effect in 2027.

Beth Mole | 89
Ozempic is a GLP-1 drug for adults with type 2 diabetes. Credit: Getty | Steve Christo
Ozempic is a GLP-1 drug for adults with type 2 diabetes. Credit: Getty | Steve Christo

Blockbuster weight-loss and diabetes drugs Wegovy and Ozempic top the list of 15 drugs selected for the second round of federal price negotiations, which are scheduled to begin this year, with resulting bargained prices going into effect in 2027.

The first round of negotiations, involving 10 high-cost drugs, wrapped up in August, with resulting prices being 38 percent to 79 percent lower than list prices. Those negotiated prices will go into effect in 2026 and are expected to save people with Medicare prescription drug coverage $1.5 billion in out-of-pocket costs.

“Last year we proved that negotiating for lower drug prices works," Xavier Becerra, secretary of the Department of Health and Human Services (HHS), said in a statement. "Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors."

The list of 15 drugs in the next round is below, in the order provided by HHS. According to the health department, about 5.3 million people with Medicare prescription drug coverage used at least one of these drugs between 2023 and 2024. In that time frame, they collectively accounted for about $41 billion in total gross covered prescription drug costs, or about 14 percent.

Ars Video

 

1 Ozempic; Rybelsus; Wegovy Weight loss, Type 2 diabetes
2 Trelegy Ellipta Asthma and COPD
3 Xtandi Prostate cancer
4 Pomalyst Multiple myeloma and Kaposi sarcoma
5 Ibrance Breast cancer
6 Ofev Idiopathic pulmonary fibrosis
7 Linzess IBS and chronic constipation
8 Calquence Blood cancers
9 Austedo; Austedo XR Huntington's disease
10 Breo Ellipta Asthma and COPD
11 Tradjenta Type 2 diabetes
12 Xifaxan Diarrhea and irritable bowel syndrome
13 Vraylar Mental health and mood disorders
14 Janumet; Janumet XR Type 2 diabetes
15 Otezla Psoriasis and psoriatic arthritis

Topping the list are three versions of semaglutide drugs sold by Novo Nordisk: Wegovy, used for weight loss and to reduce the risks of cardiovascular disease; Ozempic, used for Type 2 diabetes; and Rybelsus, used for Type 2 diabetes. The drugs are as costly as they are popular. Wegovy has a list price of around $1,350, while Ozempic's is nearly $1,000.

In an emailed statement to Ars, a Novo Nordisk spokesperson said the company is opposed to negotiating the price of these drugs and the negotiations in general. Novo Nordisk is one of many pharmaceutical companies that have sued the government over the negotiation process, which is a provision of the Biden administration's Inflation Reduction Act (IRA).

"Novo Nordisk remains opposed to government price setting through the IRA and has significant concerns about how the law is being implemented by this administration, including aggregating multiple products that individually would not meet the requirements of the statute," the statement from Novo Nordisk said. "Even as our IRA lawsuit progresses, we remain committed to working with policymakers to advance solutions to ensure access and affordability for all patients."

The pharmaceutical industry's legal challenges claim that the negotiations are unconstitutional, an argument that has so far been unsuccessful in courts given that drug makers are not required to participate in Medicare drug plans. Amid the legal defeats, pharmaceutical industry leaders are planning to ask the Trump administration to pause or alter the negotiations. Earlier this week, the CEO of Eli Lilly—which makes a rival weight loss drug to Novo Nordisk—said he and other drug makers would appeal to the next administration, saying, "They need to fix [the IRA]."

Novo Nordisk ended its statement today by saying it "will work with the incoming administration to deliver meaningful solutions for patients."

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Beth Mole Senior Health Reporter
Beth is Ars Technica’s Senior Health Reporter. Beth has a Ph.D. in microbiology from the University of North Carolina at Chapel Hill and attended the Science Communication program at the University of California, Santa Cruz. She specializes in covering infectious diseases, public health, and microbes.
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