Eli Lilly and Novo Nordisk's "influencer weight loss drug" is expected to be included in the U.S. healthcare insurance! The thousand-dollar weight loss drug may see an 85% price reduction

Negotiations between the U.S. government and pharmaceutical giants Eli Lilly and Novo Nordisk are nearing a milestone agreement.

According to media reports on Tuesday, Eli Lilly is close to reaching an agreement with the company regarding the pricing of weight loss drugs in the U.S. The agreement will allow the U.S. federal Medicare and Medicaid programs to cover weight loss drugs in exchange for significant price reductions on the companies' best-selling weight loss medications.

Sources cited by the media indicate that discussions are still ongoing, but if finalized, President Trump is expected to announce the news alongside pharmaceutical executives at the White House this Thursday.

The agreement will be implemented through a program called "TrumpRx," where the monthly price of some popular GLP-1 drugs could be as low as $149.

For both companies, despite facing pressure to lower prices, gaining federal Medicare coverage would open up a huge new reimbursement market, seen as a significant benefit. For the U.S. government, this move is part of its efforts to control soaring drug costs.

The news drove the stock prices of Novo Nordisk and Eli Lilly up nearly 2% in the short term, but the gains subsequently fell back significantly.

(Short-term surge in stock prices of Novo Nordisk and Eli Lilly)

Agreement Details

Currently, the U.S. federal Medicare program is allowed to reimburse for non-weight loss uses of GLP-1 drugs (such as reducing the risk of heart attacks or treating sleep apnea), but it explicitly prohibits payment for purely weight loss purposes.

If the agreement is reached, this situation will be completely changed. The agreement will require U.S. federal Medicare to reimburse the costs of weight loss drugs for patients with obesity and other high health risks, and allow states to cover these drugs in their Medicaid programs.

According to sources cited by the media, the agreement sets specific discounted prices for weight loss drugs at different dosages:

• Novo Nordisk's Wegovy: The monthly supply price for the lowest dosage will be set at $149 through the TrumpRx program.
• Eli Lilly's Zepbound: The starting dosage will be priced at $299, which is $50 lower than the price currently offered to patients through its direct sales website.
• Eli Lilly's investigational oral drug: If its weight loss pill orforglipron, currently in testing, receives FDA approval, the starting dosage will also be sold at $149.

The current list prices for these drugs generally range from $1,000 to $1,350 per month.

Additionally, reports indicate that Novo Nordisk's diabetes drug Ozempic may also be included in the TrumpRx program, but specific pricing has not yet been clarified.

As part of the agreement negotiations, Eli Lilly is also seeking a "priority review voucher" from the FDA to potentially shorten the approval time for orforglipron from the usual 6 to 10 months to just one to two months

Responses and Background

In response to this matter, a spokesperson for Eli Lilly stated to the media that the company is "in discussions with the U.S. government to further expand patient access, protect innovation, and promote the affordability of medications," but declined to share specific details.

A spokesperson for Novo Nordisk stated that the company is "engaging in constructive discussions with the U.S. government" and hopes to make its drugs more affordable.

A spokesperson for the Centers for Medicare & Medicaid Services (CMS) indicated that the President hopes to make these products cheaper, and the government will announce once an agreement is reached.

This negotiation is part of the "Most Favored Nation" pricing policy initiated by the Trump administration last July, aimed at reducing drug costs in the U.S., with Pfizer, AstraZeneca, and EMD Serono having reached similar agreements with the government.

Reportedly, U.S. Health Secretary Robert F. Kennedy Jr. was skeptical about the broad coverage of GLP-1 drugs, fearing it could lead to costs as high as $3 trillion.

However, CMS Director Mehmet Oz, a cardiac surgeon, presented scientific research to him demonstrating that these drugs can effectively prevent heart disease and diabetes, providing data on the cost savings for the U.S. federal government, ultimately persuading him to support expanding coverage.

Last month, President Trump stated that the price of weight loss drugs could drop to $150 or even "lower," but Mehmet Oz quickly responded at the time that negotiations were still ongoing