US President Donald Trump has unveiled a sweeping agreement with Eli Lilly and Novo Nordisk to dramatically cut the prices of blockbuster GLP-1 weight-loss drugs for Medicare and Medicaid patients, as well as for those paying out of pocket.
Announced Thursday from the Oval Office, the deal promises to make the pricey drugs, including Lilly’s Zepbound and Novo’s Wegovy, far more affordable, capping starter pill doses at $149 per month for Medicare and Medicaid enrollees and making injectables available for as low as $245 a month. The White House’s new direct-to-consumer site, TrumpRx, will also sell the drugs at or below $350, with prices expected to drop further within two years.
“This is going to equalise the world,” Trump said. “Americans will finally pay the same or less than what patients abroad are paying for the same drugs.”
The event ended abruptly when an attendee collapsed in the Oval Office.
As part of the deal, both drugmakers will receive tariff relief and fast-track regulatory vouchers for future medicines. Lilly said it will add several diabetes drugs, Emgality, Trulicity and Mounjaro, to the TrumpRx platform at discounts of 50–60 percent. Novo Nordisk pledged a $10bn investment in the United States.
Medicare co-pays for the GLP-1 drugs will be capped at $50 a month, while Medicaid coverage will expand to include overweight and obese patients with certain health risks. The changes will take effect in January for cash payers and gradually roll out through mid-2026 for government programmes.
Analysts say the move could open access for tens of millions of Americans and reshape the multibillion-dollar weight-loss drug market.
“A $150 cap could unlock access for up to 15 million Americans once oral GLP-1 pills hit the market,” Deutsche Bank wrote in a research note, adding that Lilly’s growth prospects now look “formidable.”
On Wall Street, Novo Nordisk shares fell 3.6 percent while Eli Lilly’s were flat. Pfizer rose 1 percent and AstraZeneca gained 3.4 percent on expectations their own drugs could join the TrumpRx platform.
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