06:51 AM EDT, 10/07/2025 (MT Newswires) -- Novo Nordisk ( NVO ) on Monday lost its appeal against the US Government's Medicare Drug Price Negotiation Program that gives it the power to reduce prices of prescription drugs.

The US Court of Appeals for the Third Circuit upheld a lower court ruling rejecting the drugmaker's challenge to the progrm and the Centers for Medicare and Medicaid Services' selection of six of the company's insulin products as a single "negotiation-eligible drug."

Novo Nordisk ( NVO ) had argued that the implementation of the program violated constitutional provisions, including the nondelegation doctrine, the Fifth Amendment's due process clause and the First Amendment.

The court rejected all claims, finding that the Inflation Reduction Act provides "an intelligible principle" guiding the program's discretion.

The ruling maintained the US government's authority to negotiate Medicare drug prices from 2026 and follows similar losses by other pharmaceutical companies challenging the law.

A Novo Nordisk ( NVO ) spokesperson told MT Newswires that the company is assessing options to appeal the ruling.

"We are disappointed with the decision of the US Court of Appeals for the Third Circuit and are assessing our options to appeal this ruling. As we've stated previously, Novo Nordisk ( NVO ) remains opposed to government price setting through the Inflation Reduction Act and has significant concerns about the law and with how CMS implemented the statute," the spokesperson said.