List of Medicare drug price negotiations that include Ozempic

The Biden administration on Friday unveiled the next 15 prescription drugs that will be subject to price negotiations between manufacturers and Medicare, kicking off the second phase of a landmark process that aims to make costly medications more affordable for seniors.

Topping the list are Novo Nordisk‘s blockbuster diabetes injection Ozempic, weight loss shot Wegovy and diabetes pill Rybelsus, which are considered one product in the talks since they all share the same active ingredient: semaglutide. Those treatments fueled the rise of the red-hot obesity market and have been difficult for patients to access due to cost, insurance coverage and supply constraints.

The agreed-upon prices for the second wave of drugs are scheduled to go into effect in 2027. But it’s unclear whether President-elect Donald Trump could try to change or scale back some of the law’s provisions when he takes office next week.

Here are the 15 drugs subject to the initial talks this year:

• Ozempic, Wegovy, Rybelsus, (semaglutide,) made by Novo Nordisk, is used for Type 2 diabetes, weight management, and cardiovascular health
• Trelegy Ellipta, made by GSK, is an inhaler used for chronic obstructive pulmonary disease and asthma
• Xtandi, made by Pfizer, is used to treat prostate cancer in men
• Pomalyst, made by Bristol Myers Squibb, is used to treat a blood cancer called multiple myeloma and a cancer that develops in people with HIV
• Ibrance, made by Pfizer, is used to treat certain breast cancers
• Ofev, made by Boehringer Ingelheim, is used to treat chronic lung diseases in adults.
• Linzess, made by AbbVie and Ironwood Pharmaceuticals, is used to treat irritable bowel syndrome and chronic constipation
• Calquence, made by AstraZeneca, is used to treat certain types of blood cancer
• Austedo, Austedo XR, made by Teva Pharmaceuticals, is used to treat involuntary movements caused by tardive dyskinesia or Huntington’s disease
• Breo Ellipta, made by GSK and Theravance, is an inhaler used to treat chronic obstructive pulmonary disease
• Tradjenta, made by Boehringer Ingelheim and Eli Lilly, is used for Type 2 diabetes management
• Xifaxan, made by Salix Pharmaceuticals, is used to treat diarrhea caused by traveling or irritable bowel syndrome
• Vraylar, made by AbbVie, is used to treat schizophrenia, bipolar I disorder, and major depressive disorder
• Janumet, Janumet XR, made by Merck, is used to manage Type 2 diabetes
• Otezla, made by Amgen, is used to treat plaque psoriasis, psoriatic arthritis, and oral ulcers

President Joe Biden’s Inflation Reduction Act gave Medicare the power to directly hash out drug prices with manufacturers for the first time in the federal program’s nearly 60-year history. Some congressional Democrats and consumer advocates have long pushed for the change, as many seniors around the country struggle to afford care.

About 5.3 million people with Medicare Part D coverage used the 15 drugs in the second round of talks to treat various conditions, such as asthma, cancer and Type 2 diabetes, between Nov. 1, 2023, and Oct. 31, 2024, according to a release from the Department of Health and Human Services on Friday. The group of medicines also accounted for roughly $41 billion, or 14%, of total Part D prescription drug costs during that time period, the release added.

When combined with the the 10 medications selected for the first cycle of negotiations, the 25 products represent 36% of all Medicare Part D prescription drug costs during that time period, the release said.

The drugs have been on the market for at least seven years without generic competitors, or 11 years in the case of biological products such as vaccines.

Medicare has already completed negotiations for the first 10 drugs selected in the program, with new prices set to go into effect next year. In August, the Biden administration said it expects those negotiated prices to save Medicare enrollees around $1.5 billion in out-of-pocket costs in 2026 alone. The government also expects the prices to lead to around $6 billion in net savings for the Medicare program in 2026, or 22% net savings overall.

The negotiation program has also faced a flurry of – so far unsuccessful – legal challenges from the pharmaceutical industry, which views the process as a threat to its revenue growth, profits and drug innovation.

Stephen Ubl, the CEO of the industry’s biggest lobbying group, PhRMA, said in a statement on Friday that the negotiations are “dangerous for millions of Americans who rely on innovative treatments and created unnecessary, costly bureaucracy.”

“In rushing out this list in their final days, the Biden administration once again fails to address the true challenges facing seniors and Medicare,” he added, contending that the price talks unfairly target drugs that come in pill form much earlier than other types of medicine. PhRMA is eager to work with the Trump…