Trump Administration Secures $149 Monthly Obesity Drug Deals with Pharma Giants

The Trump administration is close to finalizing agreements with pharmaceutical companies Eli Lilly and Novo Nordisk. These deals aim to make obesity drugs available to consumers for as little as $149 per month. This initiative could significantly enhance access to medications such as Wegovy, Zepbound, and Mounjaro, which have gained popularity despite their initial high costs.

Overview of the Drug Agreements

The proposed agreements would allow Medicare to cover specific obesity treatments for qualified beneficiaries. Currently, the list prices for these drugs reach between $1,000 and $1,350, but the final cost to patients varies depending on insurance coverage and discounts. President Donald Trump is anticipated to announce these deals soon, although sources indicate that the negotiations are still in progress.

Drug Pricing Initiatives

• The Trump administration’s negotiations represent part of a broader push to reduce drug costs.
• Earlier agreements have been reached with Pfizer and AstraZeneca to make certain products available at reduced prices.
• Eli Lilly and Novo Nordisk already offer weight-loss drugs at discounted cash prices—$499 for Ozempic and Wegovy and starting at $349 for Zepbound.

During a recent event, Trump highlighted the expected reduction in drug prices. He stated, “Instead of $1,300, you’ll be paying about $150,” referring to the upcoming deals on GLP-1 medications. However, the U.S. Centers for Medicare and Medicaid Services (CMS) chief Mehmet Oz echoed that negotiations are still underway.

Negotiations and Market Impact

It remains unclear which obesity medications will be sold at the reduced price and if there will be limitations for consumers. The discussions are linked to a pilot program that CMS is finalizing, aimed at capping costs for certain Medicare recipients.

Mike Doustdar, CEO of Novo Nordisk, expressed optimism about the negotiations, stating that the goal is to enhance accessibility for consumers. He noted the increasing trend of patients opting for weight-loss drugs, which resemble a consumer market driven by innovations similar to tech products.

Political Context

The ongoing negotiations come after a prolonged debate regarding Medicare and Medicaid coverage for expensive obesity drugs. Although the Biden administration proposed expanding coverage last year, the Trump administration decided to halt the proposal but left options open for future discussions.

In addition, Ozempic and Wegovy are included in Medicare’s drug price negotiations, which could yield savings for both the program and beneficiaries. Robert F. Kennedy Jr., the current health secretary, previously opposed making these medications more accessible but has shown a shift toward supporting their use under certain circumstances.