Actions of Elie Lilly And Novo Nordisk fell Friday, after President Donald Trump said his administration aims to reduce the cost of brand-name GLP-1 weight-loss drugs to $150 a month, a fraction of their current list price.
“In London, you were buying a certain drug for $130 and even less than that…$88…a month ago. And in New York, you were paying $1,300 for the same thing,” Trump said at a Thursday afternoon event on in vitro fertilization at the White House. “Instead of $1,300, you’ll pay about $150 and they’ll pay $150, so we’ll pay the same.”
When asked by a reporter what drug he was referring to, Trump replied: “I was referring to Ozempic or…the weight loss drug.”
At this point, Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid, stepped in and pointed out that the administration had not yet agreed to GLP-1 price reductions with drugmakers.
“We haven’t negotiated them yet… We’re going to roll them out over time, the GLP drug category, which includes Ozempic, hasn’t been negotiated yet,” Oz said.
Just a week ago, Oz said the administration was “in the middle of a lot of action” with price discussions with weight-loss drug makers.
Shares of Eli Lilly closed 2% lower on Friday, while shares of Novo Nordisk fell 3% in U.S. trading. Meanwhile, the actions of His health and that of him – which sells much cheaper GLP-1 compounds – plunged more than 15%.
Eli Lilly and Novo Nordisk were among 17 of the largest U.S. pharmaceutical companies that received letters from the Trump administration following the president’s executive order on so-called most favored nation pricing, requiring companies to bring U.S. drug prices in line with those in other developed countries.
Pfizer And AstraZeneca signed the president’s initiative, reaching agreements on drug pricing with the administration. But the comments from Trump and Oz make it clear that the administration is seeking to win over weight-loss drug makers.
$150 worth of GLP-1 would be cheaper than the compounds
Even though demand for weight loss drugs has increased, price remains a barrier for consumers and employers.
Only one in five large employers currently offer GLP-1 for weight loss, according to a new survey from the Kaiser Family Foundation. Of those who do, two-thirds say expensive medications have had a “significant” impact on their prescription drug spending.
Workers who lack health insurance coverage are increasingly turning to the cash market to buy their own medications.
Eli Lilly and Novo Nordisk sell discounted versions of their diabetes and weight-loss medications on their direct-to-consumer sites, for about $500 a month. Telehealth providers like Hims & Hers offer compounded versions of GLP-1 for less than half that price, between $130 and $200 per month.
If the administration could bring the spot price of popular weight-loss drugs like Lilly’s Zepbound and Novo Nordisk’s Wegovy down to $150, that would be competitive with compounded options and could have a major impact on the current spot market.