President Joe Biden’s Inflation Reduction Act allows Medicare to negotiate costly drug prices with pharmaceutical companies.

In August 2023, the U.S. Department of Health and Human Services announced the first 10 drugs covered under Medicare Part D for the first cycle of negotiations.

Danish drugmaker Novo Nordisk expects its diabetes drug Ozempic will "very likely" be on the U.S. government's 2027 list of price negotiations, Bloomberg News reported on Tuesday citing a company executive.

A top executive at Novo Nordisk (NVO) warned Tuesday that the company’s diabetes therapy Ozempic will likely be selected for the next round of Medicare drug pricing negotiations, which aim to seek discounts for blockbuster meds supplied to the federal healthcare program.

Ozempic, the blockbuster diabetes shot made by Novo Nordisk A/S, is “very likely” to be one of the next drugs targeted for a price cut in bargaining with the US government’s Medicare program, a company executive said.

The ability to negotiate drug prices is part of a sweeping set of policies in President Joe Biden’s Inflation Reduction Act.

Shares of Novo Nordisk (NYSE:NVO) fell on Wednesday after Bloomberg reported that Ozempic, Novo Nordisk’s diabetes drug, is ”very likely” to be one of the next drugs targeted for a price cut in bargaining with the US