European Pharma Companies Face Pressure from US Medicare Price Negotiations

The Centers for Medicare & Medicaid Services (CMS) has announced newly negotiated prices for 15 blockbuster drugs from 2027, including Novo Nordisk's Ozempic, which will see a 71% discount. AstraZeneca's cancer drug Calquence will face a 40% discount, while GSK's lung disease medicines Trelegy and Breo will have 73% and 83% discounts, respectively. The discounts are part of the Inflation Reduction Act, which allows the CMS to negotiate prices for certain drugs. The U.S. is a key market for large-cap pharma companies, with 56% of Novo's sales, 42% for AstraZeneca, and 52% for GSK originating from the U.S. in the first nine months of 2025.