The White House announced Thursday that blockbuster GLP-1 weight-loss and diabetes drugs—such as Ozempic, Wegovy, and Zepbound, will soon cost as little as $149 per month, a fraction of their current $1,000–$1,350 list price.
The deals with Eli Lilly ($LLY) and Novo Nordisk ($NVO) come after months of negotiations and are designed to make the treatments more affordable while giving the companies incentives like tariff relief and faster FDA approvals.
Under the plan:
- Injectable GLP-1 drugs will cost around $350/month initially, dropping to about $250/month within two years.
- Oral GLP-1 tablets, once approved, will launch at just $149/month.
- Medicare patients with qualifying conditions (such as obesity with diabetes, high blood pressure, or cardiovascular disease) will pay $50 copays, while Medicare itself will be charged $245/month.
- About 10% of Medicare enrollees—roughly 6 million people—will become newly eligible.
The reduced prices will take effect in mid-2026, coinciding with the launch of TrumpRx, the administration’s new direct-to-consumer platform.
A Shift in Medicare Policy
Historically, Medicare has been prohibited from covering weight-loss drugs. The Biden administration attempted to reinterpret the law in 2024 to include obesity as a chronic condition, but Trump’s team reversed that plan, choosing instead to secure price cuts first.
According to senior officials, these reductions make the expansion “cost-neutral,” eliminating the $25 billion 10-year price tag previously estimated under Biden’s proposal.
Tariff Relief and ‘Most Favored Nation’ Pricing
As part of the agreement, Lilly and Novo Nordisk will receive a three-year suspension of pharmaceutical tariffs and expedited regulatory review for future drugs.
In return, both companies agreed to “Most Favored Nation” (MFN) pricing—meaning new drug launches across Medicare, Medicaid, and commercial markets will match the lowest prices offered in developed countries.
Officials also confirmed both companies will cut prices for Medicaid programs nationwide. Currently, only 13 states cover GLP-1s for weight loss, but this deal could expand access through 2026.
Market Impact: Pharma Rally Meets Political Pressure
Wall Street reacted quickly. Shares of Eli Lilly ($LLY) and Novo Nordisk ($NVO) traded higher early Thursday, reflecting optimism over expanded coverage and policy clarity. Analysts also noted strong bullish options activity in $LLY, with the stock now less than 2.5% below its all-time high.
Still, Trump’s “America First” pricing model adds new uncertainty to the global drug market. His Most Favored Nation approach links US prices to those abroad, forcing Big Pharma to accept slimmer margins in exchange for tariff breaks and faster approvals.
During the Oval Office announcement, Trump, flanked by Lilly CEO David Ricks and Novo Nordisk’s Maziar Mike Doustda, called the deal “a victory for every American family tired of paying more for the same drug sold cheaper in Europe.”
He added:
“Instead of $1,300, Americans will pay about $150. It’s simple. We’re cutting out the middlemen and forcing fair deals.”
What’s Next: The first wave of lower prices is expected with injectables in mid-2026 and oral tablets later that year, pending FDA approval. Analysts at Jefferies said the initiative could “reshape GLP-1 market dynamics” and spark new competition among emerging players like Pfizer, Amgen, and Altimmune.
If successful, TrumprX could become the administration’s flagship for direct-to-consumer pharmaceutical sales, bypassing traditional pharmacy benefit managers (PBMs) and insurers.
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