New Agreements to Lower Weight-Loss Drug Prices
US President Donald Trump has announced new agreements with two major pharmaceutical companies, Eli Lilly and Novo Nordisk, aimed at reducing the costs of popular weight-loss drugs. These deals are part of a broader strategy to address high drug prices in the United States. In exchange for these price reductions, the companies will receive relief from potential tariffs that had been threatened by the administration.
During a press event at the White House, Trump highlighted that both Eli Lilly and Novo Nordisk have agreed to offer their most popular GLP-1 weight-loss drugs—Zepbound and Wegovy—at “Most Favored Nation” rates for American patients. This means that these medications will be available at significantly reduced prices for eligible individuals.
The announcement took place in the Oval Office, where a company representative standing behind Trump suddenly collapsed. The individual was later examined by Mehmet Oz, who serves as Trump’s administrator for the Centers for Medicare and Medicaid Services. Oz confirmed that the person was okay after the incident.
Rise in Popularity of GLP-1 Drugs
The new generation of appetite-suppressing drugs based on GLP-1 agonists, including brands like Ozempic, Wegovy, and Mounjaro, has seen a surge in popularity due to their effectiveness in helping people lose weight. However, the high cost of these medications—often exceeding $1,000 per month in the U.S.—has raised concerns among patients and healthcare providers.
According to a senior U.S. official, the latest move is expected to reduce the starting oral doses of GLP-1s to as low as around $150 for certain groups once approved. This initiative is being hailed as a “triumph for American patients” that could save lives and improve the health of millions.
Cost Reductions for Specific Groups
The lower prices will apply to individuals enrolled in Medicare, which serves seniors, and those in the safety net program Medicaid. Additionally, the direct-to-consumer website TrumpRx, once launched, will also offer these reduced prices. However, the costs for injectable versions of GLP-1 drugs will be higher.
U.S. officials stated that the direct-to-consumer channel will see the starting cost of injectable GLP-1s at an average of $350, with the expectation that these costs will decrease over time. Starting around the middle of next year, Medicare and Medicaid coverage for injectable drugs will begin at $245 for those meeting specific medical criteria. Eligible beneficiaries will pay a Medicare copayment of $50.
In return, the pharmaceutical companies will gain certainty regarding tariff issues and access to beneficiaries who would otherwise not be covered by Medicare for obesity-related conditions.
Tariff Relief and Previous Agreements
The three-year grace period from expected pharmaceutical tariffs, similar to deals made with Pfizer and AstraZeneca, marks a continuation of Trump’s efforts to influence drug pricing. Both companies had previously reached agreements to lower drug costs in exchange for tariff relief.
Since returning to the White House, Trump has revived drug pricing initiatives from his first presidential term. He has taken steps to pressure pharmaceutical companies into voluntarily lowering their prices. Over the summer, he sent letters to 17 drugmakers, urging them to reduce prices or face consequences. This move aims to provide Americans with more affordable medicine, as drug prices in the U.S. are often much higher than in other countries.
Trump has also previously threatened tariffs of 100% on branded pharmaceutical products unless companies establish manufacturing plants in the United States. These actions reflect his ongoing commitment to addressing the high cost of prescription drugs in the country.