Eli Lilly Shares Drop as Trump Reveals Weight-Loss Drug Price Deal

Eli Lilly’s stock experienced a decline of approximately 1% following U.S. President Donald Trump’s announcement regarding a new deal aimed at reducing the prices of weight-loss medications. This deal involves major pharmaceutical companies, including Eli Lilly and its competitor Novo Nordisk.

Trump’s Announcement on Weight-Loss Drug Prices

During a recent press conference, President Trump disclosed that agreements have been reached with Eli Lilly and Novo Nordisk. These arrangements are designed to lower the costs associated with weight-loss drugs and expand their coverage under Medicare and Medicaid.

The administration aims to enhance accessibility to these medications, making them more affordable for U.S. residents. A dedicated website, TrumpRx, will facilitate direct consumer access to the reduced-priced drugs.

Expanded Coverage Details

Beginning in mid-2026, Medicare is anticipated to provide coverage for Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, two prominent weight-loss medications. Analysts suggest that this move could enhance market access for these drugs and encourage more private insurers to include them in their plans.

Cost Structure of the New Deal

• Medicare patients will pay $50 per month for all approved uses of obesity medications, including injectable and oral forms.
• Eli Lilly’s forthcoming weight-loss pill, awaiting final approval, will be priced at $145 per month through Medicare, Medicaid, and TrumpRx.
• Starting doses of existing injections, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, will initially be $350 per month. This will subsequently decrease to $245 per month over the next two years.

Previously, Wegovy and Zepbound lacked Medicare coverage. Most private insurers also did not include these medications, which typically cost consumers over $1,000 per month.

Analysis of Eli Lilly’s Stock

Despite the stock’s recent decrease, Eli Lilly carries a consensus rating of ‘Strong Buy’ from a panel of 22 Wall Street analysts. This rating is based on 18 Buy recommendations and four Hold ratings issued in the past three months.

The average price target for Eli Lilly shares stands at $917.63, indicating a potential downside of 2.14% from current levels. Investors may explore further insights into Eli Lilly’s stock performance on El-Balad.