First large-scale drug price negotiation in the U.S. Medicare: Average price reduction of 44% for 15 drugs

The Centers for Medicare & Medicaid Services (CMS) in the United States has completed the first large-scale drug price negotiation in history, achieving an average price reduction of 44% for 15 drugs that treat serious chronic diseases and cancers, which is expected to save the Medicare system $12 billion. This is a core initiative of the Trump administration's "Affordable Care Act" aimed at reducing healthcare and food costs.

On November 26, according to media reports, CMS announced on Tuesday that the GLP-1 weight loss drugs Ozempic and Wegovy, owned by Novo Nordisk, saw a price reduction of 71% in this negotiation, becoming the most notable outcome of this round of drug price negotiations. The 15 drugs targeted in this negotiation are the highest spending drugs under Medicare Part D, used to treat chronic diseases such as cancer, diabetes, and asthma. Health and Human Services Secretary Robert F. Kennedy Jr. stated that President Trump instructed them to spare no effort in reducing healthcare costs. As the midterm elections approach, affordability issues are becoming a focal point for low-income families.

For the pharmaceutical industry, this marks a significant expansion of government pricing power. According to media reports, Novo Nordisk expressed "serious concerns" about the government-led pricing model and continues to oppose this negotiation framework.

Significant Price Reductions for Core Drugs

The results of this Medicare drug price negotiation are significant; in addition to the 71% price drop for GLP-1 drugs, several core products also saw substantial price reductions. Among them, Pfizer's breast cancer drug Ibrance was reduced by 50%, and the prostate cancer drug Xtandi was reduced by 48%, while GlaxoSmithKline's Trelegy Ellipta saw a reduction of 73%.

According to CMS statistics, combined with the 10 drugs negotiated last year (which will take effect on January 1, 2026), the number of drugs covered by price negotiations will expand to 25, further broadening the policy's impact.

Health and Human Services Secretary Robert F. Kennedy Jr. emphasized:

“Following President Trump's instructions, we are doing everything we can to lower healthcare costs for the American people. Under the vision of 'Making America Healthy Again,' we will use all feasible tools to ensure that seniors have access to affordable healthcare services.”

Under the current government-led pricing mechanism, pharmaceutical companies are actively adjusting their market strategies to respond to changes in the policy environment. For example, Novo Nordisk, while publicly expressing concerns about the current pricing mechanism, is still strategically adjusting the prices of its GLP-1 drugs to maintain market competitiveness. This move fully reflects the reality of pharmaceutical companies seeking a balance between policy pressure and market competition.

Strategic Deployment Before the Midterm Elections

The statement released by CMS marks a substantial acceleration phase for the Trump administration in promoting prescription drug price reductions, improving Medicare affordability, and controlling overall healthcare spending. Combined with its simultaneous initiatives in stabilizing food prices and other livelihood areas, the government is systematically advancing cost control across multiple fronts through the "Affordable Care Act."

Currently, against the backdrop of ongoing budget pressures faced by low-income families, healthcare and living cost issues have become focal topics in the midterm election cycle. The timing of the first large-scale public disclosure of Medicare drug price negotiation results carries clear political intent, showcasing policy execution capability while also aiming to translate drug price reduction achievements into electoral momentum, reinforcing the government's image in the economic and livelihood sectors