Stock Markets January 27, 2026

CMS Targets Branded Drugs from Eli Lilly, Pfizer and AbbVie in Third Medicare Price Negotiation Round

Third cycle adds Medicare Part B medications for the first time as federal negotiations seek to reduce prescription costs for beneficiaries

By Hana Yamamoto LLY PFE ABBV
CMS Targets Branded Drugs from Eli Lilly, Pfizer and AbbVie in Third Medicare Price Negotiation Round
LLY PFE ABBV

The U.S. Centers for Medicare & Medicaid Services has released a new roster of branded medicines selected for the third round of the Medicare Drug Price Negotiation Program. The list includes products from major manufacturers Eli Lilly, Pfizer and AbbVie, and for the first time this cycle it incorporates medications covered under Medicare Part B. The program is designed to lower prescription spending for Medicare beneficiaries by enabling direct price negotiations between the federal government and drugmakers.

Key Points

  • CMS released the list of branded drugs included in round three of the Medicare Drug Price Negotiation Program, naming products from Eli Lilly, Pfizer and AbbVie.
  • This third cycle is the first to include drugs covered under Medicare Part B, which typically covers medications administered in outpatient settings or doctors' offices.
  • The program was established to reduce prescription costs for Medicare beneficiaries by enabling direct price negotiations between the federal government and pharmaceutical manufacturers - sectors affected include pharmaceuticals and outpatient healthcare services.

The U.S. Centers for Medicare & Medicaid Services (CMS) on Tuesday published the list of branded medications designated for the third cycle of the Medicare Drug Price Negotiation Program.

The newly announced selection explicitly names products from several large pharmaceutical companies, among them Eli Lilly, Pfizer and AbbVie. CMS has stated that this round represents the first occasion in which drugs paid for under Medicare Part B will be part of the negotiation process.

Medicare Part B generally covers medications that are administered in outpatient settings or in doctors' offices. The inclusion of Part B products expands the scope of the program beyond drugs dispensed through retail pharmacies and into therapies provided through clinical or office-based care settings.

The Medicare Drug Price Negotiation Program was created with the stated objective of reducing prescription drug costs for Medicare beneficiaries. It does so by authorizing direct price negotiations between the federal government and pharmaceutical manufacturers.


What was announced

  • CMS released a new list of branded medicines selected for round three of the negotiation program.
  • The list includes drugs from Eli Lilly, Pfizer and AbbVie.
  • For the first time, products covered under Medicare Part B are part of the negotiation cycle.

The agency's announcement did not provide additional detail in this release about specific negotiation timetables, the particular drugs named beyond the companies cited, or prospective pricing outcomes. The statement emphasizes the program's mechanism - directly negotiating prices with manufacturers - and its purpose of lowering costs for Medicare enrollees.


Scope and limits of available information

The public notice confirms the expansion to Part B and the participation of major branded-drug manufacturers, but it does not include further particulars in this announcement regarding negotiation schedules, the full set of products included, or the projected impact on spending. Those specifics were not provided in the CMS release covered here.

This report only covers the details supplied in the CMS announcement: the list release, the named companies, the inaugural inclusion of Part B products and the program's core purpose of reducing prescription costs through government-manufacturer negotiations.

Risks

  • The announcement does not provide details about negotiation outcomes or timelines - creating uncertainty about when or how prices might change; this affects the pharmaceutical sector and Medicare spending forecasts.
  • The CMS notice does not list all specific drugs included in the round beyond company names, limiting clarity on which therapies administered in outpatient settings are directly implicated; this poses uncertainty for providers and payers in outpatient care.
  • The release specifies the mechanism of direct negotiations but does not describe expected effects on manufacturer revenues or beneficiary out-of-pocket costs, leaving unanswered questions for investors in drugmakers and stakeholders in the healthcare sector.

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