Aug 15 (Reuters) - The U.S. announced the final prices

of its first ever negotiation over prescription drugs on

Thursday, with Merck's ( MRK ) diabetes drug Januvia seeing the

steepest percentage cut at 79%.

The government negotiated prices for 10 of the most

expensive medicines for its Medicare program serving Americans

age 65 or older and the disabled, which covers 66 million

people.

Those drugs include top-selling blood thinner Eliquis from

Bristol Myers Squibb ( BMY ) and Pfizer ( PFE ) and Merck & Co's ( MRK )

Januvia.