Trump Strikes Historic Deal to Cut Weight Loss Drug Prices with Eli Lilly and Novo Nordisk

A Major Shift in the Fight Against High Drug Prices

In a landmark announcement from the Oval Office, President Donald Trump revealed new agreements with pharmaceutical giants Eli Lilly and Novo Nordisk aimed at drastically cutting the costs of popular weight loss medications. The deal represents one of the Trump administration’s most significant efforts to lower prescription drug prices, particularly for the increasingly sought-after class of obesity and diabetes drugs known as GLP-1s.

Discounts for Medicare, Medicaid, and Direct-to-Consumer Sales

Under the new agreements, prices for GLP-1 drugs will be slashed across Medicare and Medicaid, with discounts also available directly to consumers through a new government website—TrumpRx.gov, set to launch in January 2026. For the first time, Medicare will cover obesity medications for certain patients beginning mid-2026. Eligible individuals will pay a $50 monthly copay for approved injectable and oral GLP-1 treatments.

New obesity pills from Eli Lilly and Novo Nordisk, pending FDA approval, will debut at $149 per month, while existing injectables like Wegovy and Zepbound will start at $350 per month, gradually dropping to $245 over two years.

Expanding Access to Transform Health Outcomes

The administration projects that the expanded access could help Americans lose a combined 125 million pounds within a year. “This is the biggest drug in our country, and the most important announcement we’ve made,” said Health and Human Services Secretary Robert F. Kennedy Jr. “All Americans, even those not on Medicare or Medicaid, will benefit from these prices.”

Medicare’s new pilot program will cover select patient groups, including those who are overweight or obese and living with cardiovascular or metabolic conditions. With Medicare covering around 66 million people, the policy could reshape access to these groundbreaking treatments.

Industry Reaction and Broader Implications

Eli Lilly CEO David Ricks called the agreement “a pivotal moment in U.S. health care policy,” while Novo Nordisk CEO Mike Doustdar said the move will bring semaglutide-based medications “to more American patients at a lower cost.”

The announcement follows previous “most favored nation” agreements, tying U.S. drug costs to the lowest prices abroad. Supporters say the deal could set a precedent for future negotiations between the government and the pharmaceutical industry—potentially reshaping the landscape of prescription drug affordability for years to come.