The shares of Danish weight-loss drug maker Novo Nordisk (NVO) are retreating 5% today, while Eli Lilly (LLY), which makes a similar treatment, is giving back 2.5%. Medicare Selected Novo's Weight-Loss Drugs for Price Negotiations Novo's Ozempic and Wegovy drugs have been selected for potential Medicare price negotiations, the Center for Medicare and Medicaid Services disclosed today. Price reductions resulting from the process would take effect in 2027. Both drugs are used as treatments for diabetes and obesity. Khosro/Shutterstock.com In order to keep the treatments covered by Medicare, Novo will either have to take part in the talks or pay a large tax. It must make that call by Feb. 28. Medicare spent more than $14 billion on Novo's weight-loss drugs in the fiscal year that ended last October. The Biden administration has said that the last round of talks lowered the amount that Medicare paid for some drugs by 40% to 80% versus their official prices. Novo has launched a lawsuit against Medicare's negotiation of drug prices. The practice was established by the 2022 Inflation Reduction Act. LLY Appears to Fall in Sympathy LLY, which sells its own weight loss drug, Zepbound, seems to be falling in sympathy with NVO today. Investors may believe that Zepbound's prices will also have to eventually be negotiated with Medicare. While we acknowledge the potential of NVO, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.