President Trump Advocates $150 Monthly Limit on GLP-1 Weight Loss Drug Prices
Following President Donald Trump’s announcement to cap the monthly cost of brand-name GLP-1 weight loss medications at roughly $150, shares of Eli Lilly and Novo Nordisk experienced notable declines. This proposed price represents a dramatic reduction compared to their current retail rates.
Highlighting International Price Gaps in Medication Costs
At a White House event centered on in vitro fertilization, President Trump drew attention to the vast disparities in drug pricing across countries. He illustrated that while certain medications might be priced as low as $90 per month in cities like London, those same drugs can cost upwards of $1,300 monthly in places such as New York City. “Instead of paying over a thousand dollars,” he stated, “patients would pay about $150-bringing prices closer to global standards.”
When pressed for specifics,Trump identified Ozempic and other GLP-1 class weight loss drugs as targets for this pricing reform.
Cautious Stance from CMS Administrator on Pricing Talks
The Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz clarified that formal negotiations with pharmaceutical manufacturers regarding price reductions have not yet been finalized. While discussions are underway, no binding agreements have been reached at this point.
This cautious update contrasts with Dr. Oz’s comments just one week earlier when he suggested active collaboration with drugmakers was already taking place concerning pricing strategies for weight management therapies.
Stock Market Reacts: Shares Reflect Investor Uncertainty
The financial markets responded quickly: Eli Lilly’s stock fell by 2%,while Novo Nordisk’s shares dropped 3% during U.S. trading hours following these developments. Meanwhile, hims & Hers Health, which provides more affordable compounded versions of GLP-1 medications through telehealth services, saw its stock plunge over 15%, reflecting investor concerns about increased competition from potential government price caps.
The Most-Favored Nation Pricing Policy Targets Pharma Leaders
Eli Lilly and Novo nordisk were among seventeen major U.S.-based pharmaceutical companies receiving official notices urging them to align American drug prices with those charged in other developed nations under an executive order promoting most-favored nation (MFN) pricing policies.
Pfizer and AstraZeneca, two prominent industry players, have already agreed to participate by negotiating deals aimed at lowering their medication costs under government supervision. However,statements from both President Trump and Dr. Oz suggest ongoing efforts are focused on bringing manufacturers of popular weight loss drugs into similar arrangements.
The Impact of Affordable GLP-1 Medications on the Market landscape
The growing demand for effective obesity treatments has collided with affordability challenges faced by patients and employers alike:
- A recent survey from the Kaiser Family Foundation found only around 20% of large employers currently cover GLP-1 medications prescribed for weight management.
- among those providing coverage, nearly two-thirds report important spikes in prescription spending due to these costly therapies.
- Lack of insurance coverage has pushed many individuals toward out-of-pocket purchases via cash markets or telehealth providers offering compounded alternatives at lower prices than branded options.
Eli Lilly and novo Nordisk offer discounted direct-to-consumer programs priced near $500 per month-still considerably higher than compounded versions available through telemedicine platforms like Hims & Hers that range between $130-$200 monthly depending on dosage form and strength.
If federal initiatives succeed in capping popular brand-name drugs such as Lilly’s Zepbound or Novo Nordisk’s Wegovy around the proposed $150 threshold per month, it could substantially disrupt existing cash market dynamics by delivering competitively priced legitimate options without sacrificing quality or accessibility.
