Key Points:
- Weight-loss drug prices cut to $149–$399/month under Trump’s deal with Lilly and Novo Nordisk.
- Medicare co-pays capped at $50/month; Medicaid to receive “most-favored-nation” pricing.
- TrumpRx platform launched for direct purchase of discounted obesity treatments.
- Rollout begins January 2026, with phased access for Medicare and Medicaid recipients.
U.S. President Donald Trump announced a deal on Thursday with pharmaceutical giants Eli Lilly and Novo Nordisk to significantly lower weight-loss drug prices. The agreement is designed to make these treatments more accessible for Americans on Medicare and Medicaid, as well as for those paying out of pocket.
Under the deal, prices for starter doses of weight-loss pills, pending approval, will drop to $149 per month. Injectable versions, currently available for diabetes and other health conditions, will cost $245 per month for patients enrolled in government programs. The White House said these reductions could lower average monthly costs for Americans to between $149 and $350, down from the current retail price of around $1,000.
Trump described the deal as a move toward global price parity for U.S. consumers. “It’s going to equalize the world,” he said from the Oval Office, noting that the companies agreed to provide medications to Medicaid at “most-favored-nation” prices. The president said the cuts would make weight-loss drugs accessible to millions more Americans covered under Medicare and Medicaid, which together insure nearly half the population.
Price cuts and rollout timelines
According to the White House, the new prices will take effect in phases — beginning in January for cash payers, by mid-2026 for Medicare participants, and on a rolling basis for Medicaid as states opt in. The plan also includes a new government platform, TrumpRx, where Americans can directly purchase the drugs at discounted rates.
Lilly CEO David Ricks stated that the company anticipates U.S. approval of its obesity pill, orforglipron, in the first quarter of next year. He also confirmed Lilly’s involvement in the Medicare pricing pilot aimed at reducing weight-loss drug prices. For cash-paying patients, the lowest dose of its injectable Zepbound will be priced at $299 per month, with higher doses capped at $399.
Novo Nordisk did not disclose specific pricing details but confirmed participation in the government’s initiative. In Medicare, officials said patient co-pays will be limited to $50 a month.
Expanding access and impact
Under the government’s revised policy, expanded GLP-1 drug coverage will extend to overweight patients with prediabetes or heart conditions, as well as to obese and severely obese individuals with related illnesses. This move could impact weight-loss drug prices for up to 10% of Medicare beneficiaries, based on administration estimates.
Dr. Sarah Ro, medical director of the University of North Carolina Health’s weight management program, said the decision reverses a year-long decline in coverage for weight-loss drugs. “That’s why this is such wonderful news,” she said, adding that the $50 Medicare co-pay will make a major difference for seniors. However, she noted that the $350 monthly cost for cash buyers remains unaffordable for many patients.
The American Medical Association described the agreement as a “transformative step” in combating chronic diseases linked to obesity. It urged private insurers to follow the government’s lead in expanding coverage for these treatments.
Business and policy implications
As part of the deal, Lilly and Novo will receive temporary relief from tariffs, with exemptions lasting three years. Trump said Novo Nordisk has also pledged an additional $10 billion investment in U.S. operations.
Novo Nordisk projected a small, direct hit to global sales growth in 2026 due to the price reductions. Analysts at Deutsche Bank estimated that the $150 monthly cap on orforglipron could make the drug available to as many as 15 million Americans once fully implemented.
The Food and Drug Administration said both companies’ new pill formulations are being reviewed under an accelerated pathway, potentially shortening the approval timeline by several months.
The agreement represents one of the most impactful initiatives by the U.S. government to curb prescription costs, with a strong focus on reducing weight-loss drug prices for high-demand obesity treatments—an urgent need given that over 40% of American adults are affected by the condition.
