Novo Nordisk's stock down 4% as the Feds get ready for a second round of drug price negotiations

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The Centers for Medicare and Medicaid Services (CMS) released its second round of drug negotiation targets, a list of 15 drugs under Medicare Part D, including Novo Nordisk's ( NVO ) blockbuster GLP-1s.

Novo was trading down 4% on the news Friday.

Diabetes drug Ozempic and weight loss drug Wegovy top the list, along with a number of others like Merck's ( MRK ) diabetes drug Janumet.

Here's the full list:

Ozempic, Wegovy, Rybelsus: Novo Nordisk diabetes and obesity drugs

Janumet, Janument XR: Merck diabetes drug

Trelegy Ellipta: AstraZeneca ( AZN ) lung condition drug

Xtandi: Pfizer ( PFE ) prostate cancer treatment

Ibrance: Pfizer breast cancer treatment

Pomalyst: Bristol Myers-Squibb ( BMY ) anti-cancer treatment

Ofev: Boehringer Ingelheim non-small-cell lung cancer treatment

Tradjenta: Boehringer Ingelheim diabetes drug

Linzess: AbbVie ( ABBV ) irritable bowel syndrom treatment

Vraylar: AbbVie antipsychotic

Austedo, Austedo XR: Teva ( TEVA ) Huntingon's disease treatment

Breo Ellipta: GSK ( GSK ) lung condition and asthma treatment

Xifaxan: Salix irritable bowel syndrome drug

"The Biden-Harris Administration continues to make history by announcing the latest round of drugs selected for the Medicare Drug Price Negotiation Program, with the goal of improving access to some of the costliest drugs while saving the American people billions of dollars,” said CMS Administrator Chiquita Brooks-LaSure in a statement Friday.

She added: “Improving prescription drug affordability for Medicare enrollees is the core of the Inflation Reduction Act, and the next cycle of negotiations will continue to strengthen Medicare for generations to come."

Novo Nordisk's stock down 4% as the Feds get ready for a second round of drug price negotiations

It is unclear if the incoming Trump administration will honor this list and the process or change it after taking office January 20.

Outgoing Health and Human Services (HHS) Secretary Xavier Becerra, who oversees CMS, told Yahoo Finance recently that the GLP-1 drugs are important to Americans' health since they address more than diabetes and obesity, including cardiovascular disease, kidney disease and sleep apnea.

"If there's something that can help Americans stay healthy, we want to take a look at that. These new drugs are going to be part of the consideration the next administration goes through," Becerra said.

Novo's semaglutide drugs on the new list comes as no surprise, as speculations were rampant about their inclusion in recent months. But it could also shift the market dynamics and impact Eli Lilly's competitive portfolio with no reign on pricing for its tirzepatide drugs — Mounjaro for diabetes and Zepbound for weight loss.

Novo Nordisk currently has 55% of the GLP-1 market, and has raked in $50 billion from the two drugs last year in the first three quarters alone.

Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee on social media platforms X, LinkedIn, and Bluesky @AnjKhem .

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