Core Insights - The U.S. Centers for Medicare & Medicaid Services (CMS) has completed its first large-scale drug price negotiation, achieving an average price reduction of 44% on 15 drugs, expected to save the Medicare system $12 billion [1][2] - Notably, Novo Nordisk's GLP-1 weight loss drugs Ozempic and Wegovy saw a price drop of 71%, making them the most significant outcome of this negotiation [1][2] - The negotiation targets high-spending drugs for Medicare Part D, used to treat chronic diseases such as cancer and diabetes [1] Drug Price Reductions - Significant price reductions were achieved, including a 50% decrease for Pfizer's breast cancer drug Ibrance, a 48% reduction for prostate cancer drug Xtandi, and a 73% drop for GSK's Trelegy Ellipta [2] - By combining this year's negotiations with last year's, the total number of drugs subject to price negotiations will expand to 25 by January 1, 2026, further broadening the policy's impact [2] Government Strategy and Industry Response - Health and Human Services Secretary Robert F. Kennedy emphasized the commitment to lowering healthcare costs, aligning with President Trump's vision of making healthcare affordable for seniors [3] - Pharmaceutical companies are adjusting their market strategies in response to the government-led pricing mechanism, with Novo Nordisk expressing serious concerns while strategically adjusting prices to maintain competitiveness [3] Political Context - The announcement from CMS marks a significant acceleration in the Trump administration's efforts to lower prescription drug prices and improve Medicare affordability [4] - With rising budget pressures on low-income families, healthcare and living costs have become focal issues in the midterm election cycle, indicating a strategic timing for the drug price negotiation results to enhance the government's image in economic and social welfare [4]