Eli Lilly, Novo Nordisk to Cut Obesity Drug Prices in Trump Deal

Negotiations between the Trump administration and pharmaceutical giants Eli Lilly and Novo Nordisk are nearing conclusion. The potential deals may allow consumers to obtain popular obesity medications for as low as $149 per month. This initiative aims to increase Medicare coverage for these drugs and expand accessibility among consumers.

Details of the Agreements

Currently, the list price for obesity drugs like Wegovy, Zepbound, and Mounjaro ranges from $1,000 to $1,350. However, the actual cost to consumers can vary significantly based on insurance coverage and available discounts. The projected agreements, which are not yet finalized, have generated considerable interest.

Expected Announcement

President Trump is anticipated to announce these arrangements soon, possibly as early as Thursday. However, White House spokesperson Kush Desai urged caution, stating that discussions not yet officially announced should be treated as speculation. Press Secretary Karoline Leavitt acknowledged the administration’s engagement in drug price reductions, specifically concerning obesity medications.

Background and Broader Implications

The discussions surrounding Eli Lilly and Novo Nordisk’s drugs are a part of a larger White House initiative aimed at lowering prescription drug costs. This initiative has seen agreements with other pharmaceutical companies, such as Pfizer and AstraZeneca, to provide certain medications at reduced prices directly to consumers.

The Role of GLP-1 Medications

• GLP-1 medications have gained notable popularity for their effectiveness in weight loss and managing chronic conditions.
• Trump has referred to these medications publicly as “fat-loss drugs.”
• A significant price reduction is expected, shifting costs from approximately $1,300 to about $150 per month.

Medicare and Obesity Drug Coverage

The negotiations also relate to a pilot program currently being developed by the Centers for Medicare and Medicaid Services (CMS). This program aims to cap the costs of obesity drugs for select Medicare beneficiaries. The discussions follow a lengthy debate regarding the inclusion of these expensive drugs in Medicare and Medicaid coverage.

The Biden administration proposed expanding coverage for these medications, but the initiative was left unfinalized before Trump took office. There are indications that the current administration may reconsider this policy.

Future Considerations

The presence of Ozempic and Wegovy in upcoming Medicare drug price negotiations is anticipated to yield savings for the program and potentially for beneficiaries, depending on their coverage. Recent remarks from Health Secretary Robert F. Kennedy Jr. reflect a shift toward a more accommodating stance regarding medication use for patients with chronic health issues.

As the negotiations progress, the final decisions will determine how effectively the administration can lower the costs of obesity drugs and enhance access for millions of Americans.