Novo Nordisk A/S’s blockbuster drug Wegovy was targeted for price cuts by the US government and suffered a setback in a new trial, adding to growing threats to the Danish company’s early dominance in the surging market for new weight-loss treatments.

Novo Nordisk's blockbuster diabetes drug Ozempic and weight-loss treatment Wegovy are among the 15 drugs targeted for Medicare price negotiations for 2027, the U.S. government said on Friday.

The US plans to slash the price it pays for the Novo Nordisk A/S blockbusters Ozempic and Wegovy, the latest drugs to be targeted under legislation that’s expected save the government more than $200 billion over a decade.

The U.S. government targets Novo Nordisk's drugs, including Ozempic and Wegovy, for Medicare price negotiations in 2027. Despite opposition from the pharmaceutical giant and other companies, these medications are part of the second wave under the Inflation Reduction Act to reduce costs for senior citizens.

The Biden administration announced Friday that Ozempic, Wegovy and 13 additional drugs will now be covered under Medicare Part-D for price negotiations, the next round of negotiations under the Inflation Reduction Act passed by President Joe Biden in 2022.

Novo Nordisk's Ozempic and Wegovy, among 15 drugs including Pfizer's Ibrance, will face Medicare price negotiations in 2027, as mandated by the Biden administration's Inflation Reduction Act. The negotiations aim to curb high costs for Medicare beneficiaries,

Stock prices for Novo Nordisk fell by about 3% at market open after the Biden administration selected its revolutionary drugs for mandatory price negotiations.