In a significant development aimed at enhancing access to critical weight-loss medications, President Donald Trump announced a landmark deal with pharmaceutical giants Eli Lilly and Novo Nordisk. This initiative is designed to significantly lower the prices of popular GLP-1 drugs for Medicare and Medicaid recipients, who represent nearly half of the American population, alongside cash payers. By addressing the soaring costs of prescription drugs, this agreement underscores a commitment to making healthcare more affordable and accessible for millions of Americans, a pressing issue that has long been a topic of public concern.
United States President Donald Trump has officially unveiled an agreement with Eli Lilly and Novo Nordisk aimed at dramatically reducing the costs of widely used GLP-1 weight-loss medications for beneficiaries of the Medicare and Medicaid programs as well as cash-paying individuals. This initiative, announced on Thursday, is part of an effort to increase access to essential treatments for the aging population and low-income Americans, reflecting the ongoing commitment to healthcare coverage that benefits a significant portion of the nation.
Current statistics reveal that U.S. patients often encounter some of the highest prescription drug prices globally—nearly three times more than those in other developed countries. Trump has been advocating for a price reduction from drug manufacturers, pushing for costs to align more closely with those in international markets. During the announcement, Trump noted the potential for this agreement to create a more equitable pricing system across the healthcare landscape.
The deal stipulates that starter doses of competing weight-loss medications from Eli Lilly and Novo Nordisk, pending regulatory approval, will be available for approximately 9 per month for all Medicare and Medicaid enrollees as well as through a new direct-to-consumer platform, TrumpRx. Additionally, the prices of currently available injectable GLP-1 medications, which are also effective for diabetes treatment and other health issues, will decrease to around 5 a month for patients enrolled in Medicare and Medicaid.
The new pricing model aims to facilitate accessibility, with cash-paying patients benefitting from an average price starting at or below 0 per month, expected to decrease further over the next two years. Eli Lilly will offer the lowest dose of its Zepbound medication at 9 per month, while additional doses will be priced at 9 for cash-paying patients. Moreover, under this plan, Medicare patients will see their monthly co-pays capped at just .
In a significant expansion of coverage, the agreement now includes GLP-1s for overweight individuals with prediabetes or cardiovascular issues, as well as for those who are severely obese. This change reflects a growing acknowledgment of the importance of addressing obesity-related health problems within the Medicare framework.
The anticipated changes are set to take effect by January for cash-paying customers, followed by mid-2026 for Medicare recipients, dependent on state participation in the Medicaid framework. As part of this agreement, Eli Lilly will receive a three-year exemption from tariffs, while both companies will gain fast-track regulatory vouchers for future pharmaceuticals—a boon for their ongoing research efforts.
The announcement also highlighted Novo Nordisk’s commitment to invest an additional billion in the U.S. market. This partnership is projected to enhance medication access for approximately 40 million Americans using government insurance, as well as countless others who pay out-of-pocket.
Wall Street analysts have responded positively to the news, with Deutsche Bank identifying the price cap as a potential catalyst for significant growth for Eli Lilly, projecting that it could unlock access for up to 15 million consumers. With a growing percentage of obese adults favoring pill options over injections, the focus on oral GLP-1 treatments is expected to increase competition among pharmaceutical companies in this lucrative sector.
While Novo Nordisk stock experienced a slight downturn of 3.6 percent following the announcement, other pharmaceutical stocks—including Pfizer and AstraZeneca—saw modest gains. This multifaceted deal signifies a pivotal moment in the ongoing conversation about drug pricing and healthcare access in the United States.
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