The Centers for Medicare & Medicaid Services (CMS) has selected 15 drugs for its second round of price negotiations, including the popular weight loss medications Ozempic and Wegovy. The negotiations are set to take place in 2025, with new prices expected to take effect in 2027.
Pharmaceutical companies have until February 25, 2025, to decide if they will participate in the negotiations. In addition to Wegovy and Ozempic, other drugs selected for price talks include Xtandi, Ibrance, Calquence, and Pomalyst, which treat various types of cancer, as well as Otezla, a psoriasis medicine, Vraylar, an antipsychotic, and Trelegy Ellipta, an inhaler used to treat emphysema and asthma.
The selected drugs were used by 5.3 million people with Medicare coverage between November 2023 and October 2024 to treat conditions such as cancer and type 2 diabetes. These medications accounted for $41 billion in total gross covered under Medicare Part D, making up about 14% of all costs during that time period.
CMS Secretary Xavier Becerra stated, “We proved last year that negotiating for lower drug prices works. Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors.” The Inflation Reduction Act allows CMS to negotiate prices for brand name drugs that make up most of Medicare’s prescription drug spending.
Novo Nordisk, the company behind Ozempic and Wegovy, saw its stock fall over 4% in pre-market trading after being included in the second round of price negotiations. A new study found patients who took a higher dose of Wegovy lost more weight than those on a lower dose without experiencing an increase in side effects.
Source: https://qz.com/wegovy-ozempic-drug-price-talks-novo-nordisk-medicare-1851741842