Novo Nordisk has reached an agreement with the U.S. on maximum fair prices for its semaglutide-based drugs, effective January 2027, as part of the Inflation Reduction Act.
Novo Nordisk announced on Wednesday that it has agreed to the U.S. Inflation Reduction Act’s (IRA) negotiated maximum fair prices for semaglutide, the active ingredient in its widely used medications, Ozempic and Wegovy. This agreement will take effect in January 2027.
“While maintaining all legal challenges and rights, Novo Nordisk accepted the U.S. Inflation Reduction Act’s Maximum Fair Price (MFP) for Ozempic, Rybelsus, and Wegovy in Medicare Part D, effective as of January 2027,” the Danish pharmaceutical company stated.
These medications are included in the second batch of 15 drugs selected under President Biden’s 2022 IRA program, which enables Medicare to negotiate prices for some of the most expensive treatments available to seniors and individuals with disabilities.
Novo Nordisk indicated that the estimated direct impact of a semaglutide MFP in Medicare Part D, had it been implemented on January 1, 2025, would have resulted in a negative low single-digit impact on global sales growth for the entire year. The company now anticipates that its sales for 2025 will grow by up to 11% and operating profit by as much as 7% at constant exchange rates. This is a revision from its previous forecast of up to 14% revenue growth and a 10% profit increase.
Headquartered in Bagsværd, Denmark, Novo Nordisk is a prominent global pharmaceutical firm specializing in therapies for diabetes, obesity, cardiovascular conditions, and rare diseases. Its semaglutide-based drugs, including Ozempic for diabetes management and Wegovy for obesity treatment, are crucial to the company’s growth trajectory. However, competition in the U.S. market has intensified, particularly from Eli Lilly and other GLP-1 alternatives.
In the first half of 2025, Novo Nordisk reported approximately 18% sales growth at constant exchange rates, with revenues reaching DKK 154.9 billion and an operating profit of DKK 72.2 billion. Despite this strong performance, the company has faced challenges such as slower U.S. adoption, pricing pressures, and competitive market dynamics, leading it to revise its full-year 2025 guidance to 8–14% sales growth and 10–16% operating profit growth at constant exchange rates. This adjustment reflects a significant slowdown expected in the latter half of the year.
As part of its strategic transformation, Novo Nordisk plans to reduce its global workforce by approximately 9,000 positions, which constitutes about 11% of its total workforce of around 78,400 employees. This move aims to streamline operations and concentrate resources on core metabolic and cardiovascular therapies.
Despite these challenges, Novo Nordisk maintains a robust product portfolio, a strong global presence, and a commitment to ongoing innovation. The company continues to lead in metabolic and obesity care while navigating an increasingly competitive and complex global market.
In summary, Novo Nordisk’s acceptance of the U.S. Inflation Reduction Act’s negotiated maximum fair prices for its semaglutide-based drugs marks a significant development in the pharmaceutical landscape. The company has acknowledged that had these prices been in effect in 2025, global sales growth could have been negatively impacted by a low single-digit percentage, indicating that the projected effects are not yet realized.
Looking ahead, Novo Nordisk faces ongoing challenges, including regulatory changes, pricing pressures, and heightened competition. These factors underscore that while the company’s 2025 results are strong, they reflect a combination of actual performance and anticipated market dynamics, with future growth not guaranteed.
Source: Original article