Drugmakers consent to second round of price talks

TL/DR –

All drug manufacturers, including Novo Nordisk and Teva Pharmaceuticals, will participate in the second round of price negotiations in a process established under former President Biden’s Inflation Reduction Act. The negotiations, under the Trump administration, aim for greater transparency in Medicare drug price negotiations, with the Centers for Medicare & Medicaid Services planning to send an initial offer for each drug no later than June 1. The negotiations will target 15 drugs, including Novo Nordisk’s Ozempic and Wegovy, Teva’s Austedo, Pfizer’s Ibrance and Xtandi, and AbbVie’s Linzess.

Drug Manufacturers Agree to Participate in Second Round of Price Talks

All drug manufacturers, such as Novo Nordisk and Teva Pharmaceuticals, confirmed their participation in the second round of price negotiations, announced a federal health agency. This includes medicines targeted for price discussions in 2027.

This price negotiation process stems from the Inflation Reduction Act established under former President Joe Biden in 2022. The second cycle will proceed under President Donald Trump’s administration, aiming for “greater transparency” in Medicare drug price negotiations, following criticism for the Biden-era law from the pharmaceutical industry.

The Centers for Medicare & Medicaid Services (CMS) mentioned that these negotiations will actively engage with drug companies and the public. They will send an initial offer for each drug along with its maximum fair price proposal by June 1, and drug manufacturers have 30 days to accept or counteroffer.

Further, CMS plans to invite pharmaceutical manufacturers for up to two additional negotiation meetings through summer and fall, before the period concludes on November 1, if no agreement is reached after the initial meeting.

Novo Nordisk’s diabetes drug Ozempic and weight-loss treatment Wegovy are among the 15 drugs included in the price negotiations. Other notable drugs in the discussion include Pfizer’s cancer treatments Ibrance and Xtandi, Teva’s Huntington’s disease treatment Austedo, and AbbVie’s bowel syndrome drug Linzess.

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