; and (2) as applicable pursuant to section 1193(a)(2) and in accordance with the process specified pursuant to such section, renegotiate such maximum fair price for such drug for the purpose described in such section. (b) Negotiating methodology and objective (1) In general The Secretary shall develop and use a consistent methodology for negotiations under subsection (a) that, in accordance with paragraph (2) and subject to paragraph (3), achieves the lowest maximum fair price for each selected drug while appropriately rewarding innovation. (2) Prioritizing factors In considering the factors described in subsection (d) in negotiating (and, as applicable, renegotiating) the maximum fair price for a selected drug, the Secretary shall, to the extent practicable, consider all of the available factors listed but shall prioritize the following factors: (A) Research and development costs The factor described in paragraph (1)(A) of subsection (d). (B) Market data The factor described in paragraph (1)(B) of such subsection. (C) Unit costs of production and distribution The factor described in paragraph (1)(C) of such subsection. (D) Comparison to existing therapeutic alternatives The factor described in paragraph (2)(A) of such subsection. (3) Requirement (A) In general In negotiating the maximum fair price of a selected drug, with respect to an initial price applicability year for the selected drug, and, as applicable, in renegotiating the maximum fair price for such drug, with respect to a subsequent year during the price applicability period for such drug, in the case that the manufacturer of the selected drug offers under the negotiation or renegotiation, as applicable, a price for such drug that is not more than the target price described in subparagraph (B) for such drug for the respective year, the Secretary shall agree under such negotiation or renegotiation, respectively, to such offered price as the maximum fair price. (B) Target price (i) In general Subject to clause (ii), the target price described in this