WASHINGTON, Jan 17 (Reuters) - Novo Nordisk's

blockbuster diabetes drug Ozempic and weight-loss treatment

Wegovy are among the 15 drugs targeted for Medicare price

negotiations for 2027, the U.S. government said on Friday.

Other drugs on the list include Pfizer's ( PFE ) cancer

drugs Ibrance and Xtandi, GSK's asthma and chronic

obstructive pulmonary disease (COPD) treatment Trelegy Ellipta,

Teva's Huntington's disease treatment Austedo and

Abbvie's ( ABBV ) irritable bowel syndrome drug Linzess.

The drugs are among those that the Medicare health program

spends the most on for people aged 65 and older or with

disabilities.

Makers of the selected drugs will have until Feb. 28 to

decide if they will participate in the negotiations.

The price negotiation process was established under

President Biden's signature Inflation Reduction Act in 2022. The

15 new drugs are the second group of medications set to undergo

the process.

Last year, the U.S. government negotiated price cuts that

ranged from 38% to 79% for 10 highly popular prescription drugs

used by Medicare, which will be effective in 2026.

"These 15 drugs, together with the 10 drugs that Medicare

already negotiated, represent about a third of Medicare Part D

spending on prescription drugs," Biden said in a statement.

Biden administration officials said all forms of dosages

and strengths of drugs selected for negotiation are included.

This means Novo's blockbuster weight loss drug Wegovy - which is

made with the same ingredient as Ozempic - will be included.

Since March, patients who use Wegovy for reasons in

addition to weight loss - like reducing the risk of heart attack

or stroke - have been covered.

Government researchers predict that the use of diabetes

drug Ozempic and Wegovy for weight loss would raise the U.S.

deficit over the next 10 years at its current price. Medicare

spent over $4.6 billion on the drug in 2022. Novo has a list

price of around $935 a month while Wegovy has a list price of

around $1,350 a month, though the company says it offers

discounts.

Around 2.3 million Medicare Part D patients used Novo

drugs made with semaglutide over the year ended October 2024,

the government said. Total gross spending by Medicare part D

plans on the drugs topped $14 billion.

It's unclear whether the administration of incoming

President Donald Trump, who will take office on Monday, plans to

make any changes to the negotiations, or if it even can.

Biden administration officials suggested their

successors are unable to do so because the law outlines detailed

selection criteria that the Centers for Medicare and Medicaid,

the agency implementing the negotiations, has to follow.