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.

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.

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.

CMS will announce maximum fair prices for these drugs by November 30, 2025, with negotiated prices available on January 1, 2027.