Medicare Targets Ozempic, Cancer Drugs in Latest Price Negotiation Round

The Biden administration has announced the selection of 15 widely used medicines for the second round of Medicare drug price negotiations, marking one of its final significant health policy actions before leaving office. The list, released on Friday, includes popular drugs such as Novo Nordisk's semaglutide (sold as Ozempic for diabetes and Wegovy for weight loss) and several blockbuster cancer treatments, setting the stage for a contentious process aimed at reducing pharmaceutical costs within the Medicare program.

Selected Drugs and Their Impact

The 15 drugs chosen for negotiation represent a substantial portion of Medicare's prescription drug spending. According to the Centers for Medicare and Medicaid Services (CMS), approximately 5.25 million Medicare beneficiaries used these medications between November 2023 and October 2024, accounting for $41 billion in gross spending—about 14% of total prescription drug costs under Medicare Part D.

Among the selected drugs are Pfizer's Ibrance for breast cancer, Bristol Myers Squibb's Pomalyst for multiple myeloma, and AstraZeneca's Calquence for leukemia and lymphoma. GSK's Trelegy Ellipta, an inhaler used for asthma and chronic obstructive pulmonary disease, is also included, along with treatments for conditions ranging from psoriasis to bipolar disorder.

The inclusion of sema