President Donald Trump has announced landmark agreements with pharmaceutical giants Eli Lilly and Novo Nordisk to significantly reduce the prices of popular weight-loss drugs in the United States, making them more accessible to millions of Americans. The deals, unveiled at the White House with executives from both companies, target GLP-1 medications like Wegovy and Zepbound, which have been criticized for their high costs.
During the announcement, Trump highlighted that consumers will now pay between $245 and $350 per month for these obesity drugs, a sharp drop from previous prices that often exceeded $1,000 monthly without insurance. Specifically, Medicare beneficiaries will see prices set at $245 for drugs including Ozempic, Wegovy, Mounjaro, and Zepbound. On the upcoming TrumpRx website, scheduled to launch by January, Wegovy and Zepbound will start at an average of $350 per month and decrease to $250 within two years.
The agreements expand access to government healthcare programs, with an estimated 10% of Medicare enrollees eligible for coverage and copays as low as $50. For Medicaid, participation will depend on state sign-ups, addressing current limitations where only 13 states cover these drugs for weight loss. This expansion aims to bridge gaps in affordability, especially since federal law bans Medicare from covering GLP-1 drugs solely for weight management, though they are covered for diabetes and cardiovascular conditions.
Eli Lilly and Novo Nordisk have committed to the price reductions in exchange for benefits such as expanded market reach and, for Eli Lilly, a three-year tariff exemption. David Ricks, CEO of Eli Lilly, stated that the company is “in a unique position to work with the US government to rebalance the global system, expand access and lower costs for Americans.” Additional details include Eli Lilly’s weight-loss pill, orforglipron, priced at $149 for the lowest dose, and Zepbound at $299, pending FDA approval.
Health Secretary Robert F. Kennedy Jr., who attended the event, described obesity as “the number one driver of chronic disease” in the U.S. and called the deals a “lifesaver” for patients. He emphasized that while the medications are impactful, they should complement lifestyle changes like diet and exercise, noting that they are “not a panacea.” The announcement reflects the administration’s focus on healthcare affordability, a key theme in Trump’s policy agenda.
This development follows months of negotiations and pressure from the Trump administration, which sent letters to 17 drug companies in July demanding lower prices. Pfizer was the first to reach a similar deal, slashing prices by up to 85% on TrumpRx, and others like AstraZeneca and EMD Serono have since followed. The efforts align with Trump’s push for “most-favoured nations” pricing to align U.S. drug costs with lower international rates.
The implications of these deals are substantial, potentially improving public health by increasing access to effective treatments and reducing the burden of obesity-related diseases. They may also set a precedent for future drug pricing reforms and influence ongoing debates about healthcare policy. As the TrumpRx platform prepares to go live, its success could shape how the government negotiates with pharmaceutical companies moving forward.