Medicare targets Botox, Trulicity in bold new drug price negotiations

The US government has announced a new round of Medicare drug price negotiations, targeting major treatments like Botox and Trulicity. These talks follow President Biden's Inflation Reduction Act, which allows Medicare to lower costs for widely used medications. Drugmakers now face a key decision before the February deadline.

The list of drugs under negotiation includes treatments for chronic conditions such as COPD, HIV, cancer, and autoimmune diseases. These medications accounted for roughly $27 billion in Medicare spending across Part B (clinic-administered drugs) and Part D (prescription drugs). Botox, produced by AbbVie, is included—not for cosmetic use but for medical purposes like migraines, bladder issues, and muscle disorders.

The negotiations also cover Trulicity and Tradjenta, both used for Type 2 diabetes. While AbbVie is a major player in these talks, the manufacturer of Trulicity remains unconfirmed in the latest reports. Companies can opt out of negotiations, but doing so risks losing access to Medicare, one of the largest healthcare markets. Negotiated prices will take effect in 2028, giving drugmakers until February 28 to respond. This follows earlier CMS announcements of lower prices for drugs like Ozempic and Wegovy, set to begin in 2027.

The outcome of these negotiations will directly impact millions of Medicare patients relying on these medications. If successful, the new prices could significantly reduce costs for both the programme and beneficiaries. The process reflects ongoing efforts to control rising drug expenses under US healthcare policy.