Drugmakers agree to participate in second round of price negotiations

(Reuters) -All drug manufacturers, including Novo Nordisk and Teva Pharmaceuticals, whose medicines are part of the second round of price talks have agreed to participate in the negotiation process, a federal health agency said on Friday.

The price negotiation process was established under former President Joe Biden's signature Inflation Reduction Act in 2022.

The second cycle of negotiations will take place under President Donald Trump's administration. The U.S. government has said that it plans to aim for "greater transparency" in Medicare drug price negotiations under Trump, following criticism from the pharmaceutical industry for the Biden-era law.

The Centers for Medicare & Medicaid Services said on Friday that the negotiations "will include robust engagement with drug companies and the public."

The agency will send an initial offer for each drug with its maximum fair price proposal no later than June 1, and the drugmakers will have 30 days to either accept it or provide a counteroffer.

CMS plans to invite a drugmaker for up to two additional negotiation meetings during the summer and fall before the period ends on November 1, in case an agreement is not reached after the initial meeting.

Novo Nordisk's diabetes drug Ozempic and weight-loss treatment Wegovy are among the 15 drugs targeted for the price negotiations for 2027.

Other drugs on the list include Pfizer's cancer drugs Ibrance and Xtandi, Teva's Huntington's disease treatment Austedo, and AbbVie's bowel syndrome drug Linzess.

(Reporting by Bhanvi Satija and Sneha S K in Bengaluru; Editing by Alan Barona)

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