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US targets 10 drugs for pricing negotiations in crackdown on costs

Expensive medicines made by Pfizer, J&J and Merck selected for talks in biggest shake-up in decades

The US government named 10 of the best-selling drugs as the first to face tough price regulations in a bid to slash healthcare costs, marking the biggest shake-up for the pharmaceutical industry in decades.

The new rules give the federal government the power to negotiate lower prices for some of the most expensive prescription drugs produced by Pfizer, Merck and other pharma companies purchased by Medicare, the taxpayer-funded healthcare system for retirees.

The reforms, which have been bitterly opposed by the pharmaceutical industry, aim to cut exorbitant costs for Americans, who face some of the highest prices for prescription drugs in the developed world. In 2022 the country spent more than $600bn on medicines, almost half the total global outlay, according to Statista.

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