Trump, Eli Lilly, Novo Nordisk unveil deals to cut obesity drug prices

US President Announces Landmark Deals to Reduce Obesity Drug Prices

On November 6, 2025, US President Donald Trump announced significant agreements with pharmaceutical companies Eli Lilly and Novo Nordisk to substantially lower the prices of their obesity drugs. This move aims to increase access to these life-changing treatments for millions of Americans struggling with obesity and related health issues.

The deals will reduce the prices of GLP-1 drugs, including upcoming pills, for Medicare and Medicaid beneficiaries starting in 2026. A new website, TrumpRx.gov, will be launched in January, allowing consumers to purchase these medications at a discounted price. Medicare will cover obesity drugs for eligible patients for the first time, with a copay of $50 per month for all approved uses of injectable and oral GLP-1 drugs.

Impact on Obesity Treatment

The agreements will make a significant impact on the treatment of obesity in the US. Starting doses of upcoming obesity pills from Eli Lilly and Novo Nordisk will be priced at $149 per month for everyone getting them through Medicare, Medicaid, or TrumpRx. Existing injections like Novo’s Wegovy and Lilly’s Zepbound will be priced at $350 per month on TrumpRx, decreasing to $245 per month over a two-year period.

These price reductions will make it possible for more people to access these effective treatments, which can lead to significant weight loss and improved health outcomes. The expanded access to these medications is expected to have a positive impact on public health, with potential reductions in obesity-related conditions such as cardiovascular disease and sleep apnea.

Most Favored Nation Policy

The deals are part of the Trump administration’s “most favored nation” policy, which aims to reduce high US drug costs by tying them to the lowest prices abroad. The policy has already led to agreements with other pharmaceutical companies, including Pfizer, AstraZeneca, and EMD Serono, to sell certain drugs directly to patients at a discount.

Health and Human Services Secretary Robert F. Kennedy Jr. emphasized the significance of this announcement, stating that it will have the biggest impact on the American people. The administration expects that the expanded access to these medications will lead to dramatic effects on human health, with an estimated 125 million pounds of weight loss among Americans over the next year.

Eligibility and Access

Medicare coverage will be enabled through a pilot program designed to cover a majority of beneficiaries under Medicare Part D. Eligible patients will fall into three cohorts: those who are overweight with a body mass index (BMI) greater than 27, those with obesity and uncontrolled hypertension or kidney disease, and those with severe obesity (BMI greater than 35).

While the list prices of existing obesity drugs can be a significant barrier for patients, the new agreements will make these treatments more accessible. Eli Lilly and Novo Nordisk have agreed to cut the price Medicare pays for GLP-1s to $245 per month, and the companies will extend lower government pricing for their GLP-1 drugs to all 50 Medicaid programs for all covered uses.