U.S. President Donald Trump announced an agreement with Eli Lilly and Novo Nordisk on Thursday to significantly reduce prices for certain weight-loss drugs, including upcoming oral versions.

Under the deal, starting in 2026, Medicare and Medicaid patients with obesity and comorbidities (e.g., prediabetes or heart failure) will gain access to GLP-1 drugs like Lilly’s Zepbound and Novo Nordisk’s Wegovy at a drastically lowered list price of approximately $245 per month, with Medicare patients paying a $50 copay. These drugs will also be sold directly to consumers at discounted rates via TrumpRx.gov, a website the Trump administration plans to launch in January next year.

This marks the first time Medicare will cover weight-loss drugs for some patients by mid-2026. Analysts suggest the move could expand the market for these treatments and pressure private insurers to follow suit. Certain Medicare patients using GLP-1 injectables or oral drugs for approved indications (e.g., diabetes or weight management) will pay just $50 monthly.

An unnamed senior administration official told reporters during a briefing that the starting dose price for Lilly’s and Novo Nordisk’s upcoming oral weight-loss drugs (post-approval) will be standardized at $145 monthly across Medicare, Medicaid, or TrumpRx channels. Novo’s oral version of Wegovy may debut by year-end, while Lilly’s orforglipron could launch next year.

Another official noted that existing injectables like Wegovy and Zepbound will start at $350 monthly on TrumpRx but gradually drop to $245 over two years.

Trump emphasized that Wegovy and Zepbound were previously excluded from Medicare coverage for weight loss, with Medicaid “rarely covering” them either. “Consumers often paid over $1,000 monthly—sometimes far more. That ends today,” he stated.

The agreements represent one of the Trump administration’s most politically significant efforts to curb U.S. drug prices by linking them to international benchmarks. As part of his “Most Favored Nation” policy, Trump has also secured deals with Pfizer, AstraZeneca, and EMD Serono to sell certain drugs directly to patients at discounts in exchange for waiving planned pharmaceutical tariffs.

U.S. Health Secretary Robert F. Kennedy Jr. called GLP-1 drugs “the most important class of medications in our nation,” predicting the policy would help Americans collectively lose 125 million pounds (~56.7 million kg) by next year, with “profound health impacts.”

Following the news, Novo Nordisk’s ADR initially rose but later fell ~3%, while Lilly’s stock edged up.

**Expanding Access** Current list prices of $1,000–$1,350 monthly (pre-insurance) have been a major barrier. Many patients could benefit from these drugs’ weight-loss effects and associated cardiovascular/metabolic improvements. While Lilly and Novo already offer direct discount programs, the new deal further broadens access.

Under the agreement, both companies will cut Medicare prices for GLP-1 drugs (approved for diabetes or weight loss) to $245 monthly. They’ll also extend this pricing to Medicaid programs in all 50 states for covered indications, though participation is state-by-state.

Medicare’s coverage shift is particularly impactful, as it insures ~66 million people, primarily seniors. The new coverage will be piloted under Medicare Part D (prescription drug plans), with eligibility for ~10% of beneficiaries divided into three groups: 1. Overweight (BMI >27) with prediabetes or cardiovascular disease; 2. Obese (BMI >30) with uncontrolled hypertension, kidney disease, or heart failure; 3. Severely obese (BMI >35).

An official stressed balancing expanded access with clinical benefits: “We’ve limited eligibility to patients with clear medical needs.”

Lilly and Novo also pledged to apply Most Favored Nation pricing to future drugs, extend Medicaid pricing nationwide, and share savings from overseas price hikes with the government.

Separately, Lilly announced an additional $50 discount on its LillyDirect platform, lowering Zepbound’s starting price to $299 monthly (higher doses up to $449). Its oral drug will start at $149 monthly post-approval.

**Industry Reactions** Lilly CEO David Ricks called the deal a “pivotal moment for U.S. healthcare,” reaffirming the company’s commitment to “improving outcomes and strengthening the system.” Novo Nordisk CEO Mike Doustdar stated it would “expand access to semaglutide-based therapies at lower costs.” Semaglutide is the active ingredient in Wegovy and Ozempic.

This isn’t the first attempt to include weight-loss drugs in Medicare. Former President Biden proposed a rule to allow coverage, but the Trump administration rejected it in April over cost concerns (estimated at $35 billion over nine years). However, some experts argue long-term savings from obesity-related disease prevention could offset expenses.

Semaglutide is also among the 15 drugs selected for Medicare price negotiations under the Inflation Reduction Act (signed by Biden in 2022). Updated prices will be announced by November 30. Lilly’s tirzepatide (used in Zepbound and Mounjaro) may not qualify for negotiations until the late 2020s.