The U.S. government said Tuesday it negotiated a 71% discount off of the list price of Novo Nordisk A/S’s blockbuster drugs Ozempic and Wegovy for patients in Medicare, the federal health insurance program for the elderly.

Medicare plans already get significant rebates and discounts off of drug company’s list prices, but the government doesn’t normally disclose those deals. These newly announced rates are the result of a Biden-era law and will be effective in 2027. Other blockbuster medications like Pfizer Inc.’s breast cancer drug Ibrance will see a 50% price cut when compared with its 2024 list price, the Centers for Medicaid and Medicare Services said in a statement Tuesday.

“This is what serious, fair, and disciplined negotiation looks like,” CMS Deputy Administrator Chris Klomp said

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