Novo Nordisk (NYSE:NVO) shares plummeted after the US Medicare program announced it plans to include the firm’s weight loss medications in its second round of price negotiations.
Shares of the Danish drugmaker fell 4.4% to about $79 on Friday morning, bringing the stock’s losses to 25.5% in the last 12 months.
The US Department of Health and Human Services unveiled a list of 15 drugs selected for Medicare’s Drug Price Negotiation Program, including Novo Nordisk’s Ozempic and Wegovy.
Other drugs listed include Pfizer’s cancer therapy Ibrance, Teva Pharmaceutical’s movement disorder treatment Austedo and Merck’s diabetes therapy Janumet.
The price negotiation will occur later this year, with new prices to go into effect in 2027.
“Last year we proved that negotiating for lower drug prices works. Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors,” HHS secretary Xavier Becerra said in a statement.
“Today’s announcement is pivotal – the Inflation Reduction Act is lowering prices for people on Medicare. HHS will continue negotiating in the best interest of people with Medicare to have access to innovative, life-saving treatments at lower costs.”