United States President Donald Trump, along with pharmaceutical giants Eli Lilly and Novo Nordisk, announced a historic pricing agreement on Thursday to reduce the cost of GLP-1 weight-loss drugs for Medicare and Medicaid recipients, as well as cash-paying consumers. The move is intended to expand access to these medications for older adults, low-income patients, and millions of others seeking effective obesity treatments.

Overview of the Deal

The agreement sets substantially lower prices for both existing injectable GLP-1 medications and upcoming oral alternatives. Key provisions include:

• Starter doses of upcoming oral weight-loss pills priced at $149 per month for Medicare and Medicaid enrollees, as well as through the new White House platform TrumpRx.
• Current injectable GLP-1 medications, including Wegovy and Zepbound, will cost $245 per month for patients covered by Medicare or Medicaid.
• Cash-paying patients using the TrumpRx platform will see prices starting at $350 per month, with an expected reduction to $245 within two years.
• Lilly’s Zepbound will be available for $299 per month for the lowest dose, while higher doses will cost $449 per month for out-of-pocket patients.
• Medicare co-pays capped at $50 per month.
• Commercial insurers can access prices roughly 25% lower than current cash prices.
• Expanded coverage under Medicare for overweight patients with prediabetes, heart conditions, or obesity with comorbidities, potentially affecting 10% of Medicare enrollees.

The agreement is set to take effect no later than January 2026 for cash payers, mid-2026 for Medicare patients, and on an ongoing basis for Medicaid recipients depending on state-level enrollment.

TrumpRx Platform and Regulatory Incentives

As part of the deal, the Trump administration is offering the companies fast-track regulatory vouchers for certain future drugs. The TrumpRx platform aims to facilitate direct-to-consumer access at lower costs, allowing patients to purchase medications without traditional insurance intermediaries.

Both companies committed to additional investment in the US, with Novo Nordisk pledging $10 billion, while Eli Lilly will make its diabetes medications – Emgality, Trulicity, and Mounjaro – available on TrumpRx at 50–60% below current list prices.

Impact on GLP-1 Market and Obesity Treatment

Currently, GLP-1 drugs are among the most effective weight-loss treatments in the US, with list prices exceeding $1,000 per month. Under the new agreement, these medications will become significantly more accessible for millions of Americans.

Analysts at Deutsche Bank noted that a $150 monthly cap could unlock access for up to 15 million Americans using upcoming drugs like Lilly’s orforglipron. They estimate about 20% of obese adults would prefer oral pills over injectables, while roughly 2.7 million Americans currently use Lilly’s injectable Zepbound.

Novo Nordisk’s oral Wegovy is under FDA review, with a decision expected later this year. Lilly’s orforglipron is slated for submission by year-end, potentially launching in 2026. These developments signal a growing GLP-1 market dominance for the two companies, with physicians and patients increasingly favoring their therapies.

Wall Street Reaction

Despite the announcement, the stock market showed mixed responses:

• Novo Nordisk shares fell 3.6%.
• Eli Lilly shares remained flat, up only 0.03%.
• Pfizer and AstraZeneca saw modest gains of 1% and 3.4%, respectively, reflecting prior TrumpRx pricing agreements.

Conclusion

The new pricing agreement between Trump, Eli Lilly, and Novo Nordisk represents a major step toward lowering US prescription drug costs and expanding access to life-changing weight-loss medications. By reducing financial barriers for Medicare and Medicaid patients, and offering cash-payer options through TrumpRx, the deal could significantly impact obesity treatment in the United States, while also shaping the future of GLP-1 drug adoption and pharmaceutical pricing strategies.

Key Takeaways:

• Historic pricing agreement announced to lower GLP-1 drug costs.
• Medicare and Medicaid beneficiaries benefit from capped monthly payments.
• Oral GLP-1 treatments like Wegovy and orforglipron will expand access.
• TrumpRx platform provides direct-to-consumer purchasing at reduced prices.
• The deal strengthens Eli Lilly and Novo Nordisk’s market position while addressing US drug cost concerns.