By Micah Jonah, January 28, 2026
The United States government has named 15 new drugs for Medicare price negotiations scheduled for 2028, including Gilead Sciences HIV treatment Biktarvy and Pfizer arthritis drug Xeljanz.
The announcement marks the third round of medicines selected under the Inflation Reduction Act of 2022, which allows the government to negotiate prices of certain drugs purchased through the Medicare health programme for elderly people and persons with disabilities.
Despite strong opposition from pharmaceutical companies and several failed lawsuits challenging the law, the first set of negotiated prices on 10 prescription drugs already took effect this year.
The latest list also includes medicines administered in hospitals and doctors’ offices, such as Novartis psoriasis drug Cosentyx and AbbVie’s Botox. Eli Lilly diabetes drug Trulicity was also selected for negotiation.
The US Centers for Medicare and Medicaid Services said the selected drugs accounted for about 27 billion dollars in Medicare spending in 12 months, ending October 31, 2025. The drugs were chosen because they are several years past approval, currently have no generic or biosimilar alternatives.
Industry groups have continued to criticize the policy, warning that government price setting could lead to higher long term costs and fewer treatment options for patients. However, health officials say the programme is aimed at reducing the financial burden on seniors who rely heavily on prescription medicines.
Meanwhile, shares of major drugmakers, including Gilead, Eli Lilly, Pfizer, AbbVie, Johnson and Johnson and Bristol Myers Squibb, rose slightly in after hours trading following the announcement, suggesting that investors expect the impact of the negotiations to be manageable.
