Novo Nordisk will slash U.S. list prices of its blockbuster diabetes and weight-loss drugs Ozempic and Wegovy by up to 50% starting next year, the Danish drugmaker said on Tuesday.

The price cuts will be effective January 1 next year, coinciding with the implementation of new, lower prices for the same drugs under federal Medicare health plans for older adults.

The market for so-called GLP-1 drugs has been getting increasingly competitive, while the broader shift to consumer-driven cash-pay channels is making price points more sensitive.

Both Ozempic and Wegovy will list for $675 a month from next year, half the current price for Wegovy and a 35% cut for diabetes treatment Ozempic.

The price cuts also will apply to Wegovy and Rybelsus pills.

This decision applies to all doses of these medicines and reflects Novo Nordisk’s commitment to enhancing affordability for patients and both public and private payers dealing with the complexities of the evolving U.S. healthcare system, the company said.