Eli Lilly and Novo Nordisk are reportedly finalizing the deal with the Trump administration, which would significantly bring down the costs of their best selling obesity medications.
The agreement which has been negotiated for several weeks is expected to be announced soon. Sources familiar with the negotiation say that these companies will provide certain weight-loss medicines at about $149 a month.
Negotiations have focused on improving the affordability and access of drugs like Wegovy, Zepbound and Mounjaro, which emerged as widely recognized blockbuster agents in the treatment of obesity but are expensive at retail prices between $1,000 and $1,350 per month.
Trump Rx Medicare Coverage Proposal
This pricing structure will be run under the Trump Rx program. It seeks to give American consumers more relief in prescription drug pricing. This deal will also be a stepping stone for Medicare to include these medications as part of their benefits for eligible beneficiaries. So far Medicare has only covered these medications if prescribed for diabetes or any other approved condition.
The administration would cover weight loss as an appropriate indication for using these treatments to extend the reach of these therapies to millions of Americans suffering from obesity. This action is regarded as a strategic plan to address an emerging public health crisis and to reduce long term healthcare costs resulting from diseases associated with obesity.
Industry Response and Policy Implications
Novo Nordisk is in active “positive discussions” with the administration, the spokesperson said, and reiterated that the company is fully committed to making product access and affordability even better for patients. Eli Lilly chose more silence, however, insiders suggest that the two companies share similar goals in the agreement.
Drug pricing reform has been high on the Trump administration’s agenda this year. Prior attempts to do so led to similar agreements between the federal government and other pharmaceutical companies.
Potential Effects on Patients and Market Dynamics
If completed, the deal would potentially reshape the landscape for treatment of obesity in the United States. Now drug prices would be significantly lowered, and a much larger number of health plans would have expanded coverage for these medications. This manufacturing attempt could increase demand pressures and perhaps force price changes in the entire industry.
Conclusion
Negotiations between the Trump administration, Eli Lilly and Novo Nordisk represent a pivotal moment in the effort to make obesity treatments more affordable. Expected timing for an announcement comes soon and observers in every corner of the health sector will hold their breath in anticipation.
