Just how much Medicare price negotiations will negatively impact Novo Nordisk, though, depends on what the final negotiated prices for Ozempic, Wegovy, and Rybelsus will be. In Medicare's negotiations for 2026, the new prices achieved an average of 22% savings.

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

The new treatment targets gut hormone GLP-1 but also mimics amylin, a hormone released by the pancreas that suppresses hunger.

Ozempic's expanded approval in the U.S. could transform how doctors treat patients with the condition, which involves a gradual loss of kidney function.

Ozempic, the blockbuster GLP-1 drug that was originally approved to treat type 2 diabetes, has now also been approved by the US Food and Drug Administration to reduce certain risks associated with chronic kidney disease,

Novo Nordisk said on Tuesday the U.S. FDA has approved its blockbuster drug Ozempic to lower the risk of progression of chronic kidney disease and the organ's failure, and death due to heart problems in adults with type 2 diabetes.