Trump Announces Major Price Cuts for Weight-Loss Drugs
In recent days, the cost of drugs has been peaking at a different level. To tackle this issue and to widen access to obesity treatments, President Donald Trump announced new agreements with pharmaceutical giants Eli Lilly and Novo Nordisk. This is done to significantly reduce the prices of their hit weight-loss drugs.
The deals were revealed from the Oval Office on Thursday. This step is marked as one of the most consequential steps in Trump’s ongoing campaign to control the high U.S. drug prices by linking them to the lowest rates available abroad. The agreements will make GLP-1 drug, a class of medications used for diabetes and obesity, more affordable under Medicare and Medicaid starting from mid of 2026.
Medicare will cover obesity treatments for the first time, and this would allow certain beneficiaries to access these life-changing drugs for as little as $50 per month. The initiative will also extend discounted prices directly to consumers through a new government platform, TrumpRx.gov, which is set to launch in January 2026.
“These drugs have cost people over $1,000 a month. That ends today,” Trump declared, adding that the initiative is a “historic victory for American patients and families.”
Price Reductions for Popular Weight-Loss Drugs
According to the new agreements, the drugs from Eli Lilly and Novo Nordisk, which are pending regulatory approval, will be priced at $149 per month for Medicare, Medicaid, and TrumpRx users.
The existing drugs, like Wegovy by Novo Nordisk and Zepbound by Eli Lilly, will be made available for $350 per month. It is also expected to drop to $245 over the next two years. The companies have also agreed to extend the sales with reduced pricing for GLP-1 drugs used in diabetes treatment across all 50 Medicaid programs.
Impact on Market and Public Health
The obesity treatment landscape and the Medicare prescription drug program serve almost 66 million Americans. This agreement is expected to reshape both of them. The analysts are also expecting that this move would encourage the private insurers to expand their own coverage of GLP-1 medications. These are seen as the most important tools to fight against obesity, diabetes and other cardiovascular diseases.
Recently, a priority review was given to two drugs orforglipron and Wegovy, by Eli Lilly and Novo Nordisk, respectively. This was given by the FDA and is expected to reach the market in early 2026. This would give an upper hand in adopting the GLP-1 oral drug as an alternative to injections.
Industry Response
The CEO of Eli Lilly, David Ricks, called this deal a defining milestone for US healthcare. He also emphasizes that the company would continue focusing on its commitment to improving outcomes of patients and strengthening the nation’s health system.
The CEO of Novo Nordisk, Mike Doustdar, has said that the agreement will bring semaglutide medicines to more American patients at a lower cost.
The pricing changes are part of Trump’s “Most Favored Nation” policy, where drug companies must match that or offer drugs at lower prices than those in other countries to avoid import tariffs. Recently, similar deals were made with Pfizer, AstraZeneca, and EMD Serono.
A Turning Point for U.S. Healthcare
Experts are saying that this deal could bring an important and major change in how the U.S. government handles drug pricing and preventive healthcare. Previous bodies covered the obesity drugs under Medicare and avoided them because of high costs. But this program is aiming to make them more affordable and improve public health.
If this program succeeds, it will serve as a model for fair drug pricing. It will also inspire more partnerships between the government and pharma companies to fight against chronic diseases.
President Trump summed it up by saying, “We’re making America healthier and stronger, one prescription at a time.”
