Trump announces agreement with Eli Lilly (LLY.US) and Novo Nordisk A/S Sponsored ADR Class B (NVO.US) to lower the price of weight loss drugs.

President Trump announced on Thursday that he has reached an agreement with Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B to significantly reduce the prices of popular GLP-1 class weight-loss drugs in the United States Medicare, Medicaid system, and self-pay market. The move aims to increase the accessibility of these drugs, allowing millions of Americans to obtain these prescription medications at a lower cost. Currently, GLP-1 drugs (such as Eli Lilly's Zepbound and Novo Nordisk A/S Sponsored ADR Class B's Wegovy) are priced high in the United States, with self-pay prices typically ranging from $500 to $1000 per month, much higher than in other developed countries. According to the latest agreement released by the White House, the prices will be lowered to between $149 and $350 per month, with Medicare and Medicaid beneficiaries being the first to benefit. During a press conference in the Oval Office, President Trump stated, "This will bring global prices back to the same starting line," and mentioned that Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B will provide the related medications to Medicaid at the "most favored nation prices." He emphasized that this agreement will further expand the coverage of Medicare and Medicaid for low-income individuals in the United States, potentially impacting nearly half of the population. Under the agreement, Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B are developing an oral GLP-1 weight-loss drug (awaiting FDA fast-track approval), with the introductory dose to be sold for $149 per month on Medicare, Medicaid, and the newly launched TrumpRx direct sales platform. The prices of injectable versions of GLP-1 drugs already on the market will be reduced to around $245 per month. The Trump administration stated that self-pay users can expect the price reduction to take effect no later than January of next year, while Medicare patients are expected to see reductions by mid-2026, and Medicaid will implement reductions in phases depending on state participation. Eli Lilly stated that the lowest dose of Zepbound will be sold in the self-pay market for $299 per month, while the higher dose version will be $449. Novo Nordisk A/S Sponsored ADR Class B did not disclose specific pricing details but confirmed its participation in the unified pricing mechanism. The new agreement also sets a monthly out-of-pocket limit of $50 for Medicare patients to significantly reduce the burden of medication costs for the elderly. For a long time, GLP-1 weight-loss drugs have faced widespread reimbursement obstacles in the United States, with many employer-sponsored health plans and state Medicaid programs canceling coverage due to cost pressures, leaving many patients unable to continue treatment. Dr. Sarah Ro, Medical Director of the Weight Management Treatment Program at the University of North Carolina, stated that before the announcement, the situation was "getting worse," with many patients losing insurance coverage, making this policy "very meaningful." However, she warned that even at $350 per month, self-pay users will still face economic pressure. In exchange for the price reduction commitment, the US government also offers certain incentives to pharmaceutical companies. Eli Lilly and Novo Nordisk A/S Sponsored ADR Class B will receive a three-year tariff exemption, with Novo Nordisk A/S Sponsored ADR Class B committing to an additional $10 billion investment in the United States. According to Eli Lilly, this price agreement will improve the accessibility of medication for about 40 million health insurance beneficiaries, with millions of self-pay users also benefiting. Deutsche Bank analysts estimate that if the price cap is reduced to $150 per month, Eli Lilly's oral GLP-1 drug, orforglipron, could potentially add 15 million potential accessible patients, compared to the current approximately 2.7 million Americans using Zepbound. It is worth noting that President Trump had previously pushed for major pharmaceutical companies such as Pfizer Inc. and AstraZeneca PLC to join the "TrumpRx platform" pricing mechanism, and this price reduction agreement for GLP-1 drugs is seen as a key milestone in his government's drug pricing reform efforts.