Novo Nordisk’s NVO shares lost 5.3% on Friday after Medicare issued a press release selecting the company’s popular semaglutide medicines as one of the 15 additional drugs covered under Medicare Part D for the second round of price negotiations in 2025.

Medicare announced plans to negotiate lower prices for 15 costly drugs, including Ozempic, Wegovy, and Trelegy Ellipta, starting in 2027. These medications, used for conditions like diabetes, weight loss, and asthma, accounted for $41 billion in Medicare spending last year. Novo Nordisk’s drugs alone cost $14.4 billion.

Medicare is set to negotiate with manufacturers on 15 drugs in an effort to lower their prices for consumers nationwide. The Biden Administration announced that the Inflation Reduction Act cut the price of some drugs by 40% to 80% last year,

The Biden administration announced Friday that Ozempic, Wegovy and 13 additional drugs will now be covered under Medicare Part-D for price negotiations, the next round of negotiations under the Inflation Reduction Act passed by President Joe Biden in 2022.

Federal officials are targeting the blockbuster drugs as part of their ongoing initiative to lower drug costs.

On Friday, the U.S. Department of Health and Human Services (HHS) unveiled the selection of 15 additional drugs covered under Medicare Part D for price negotiations, building on efforts to reduce prescription drug costs.

U.S. Health and Human Services Secretary Xavier Becerra says “this is a big deal.” Drug companies oppose the program.

Ozempic and Wegovy, the blockbuster but costly GLP-1 drugs often used for weight loss, are among the 15 medications that will be subject to the next round of Medicare price negotiations, the Biden administration announced Friday.