The Trump administration has announced agreements with pharmaceutical companies Novo Nordisk (NYSE:NVO) and Eli Lilly and Co (NYSE:LLY) to reduce the cost of GLP-1 medications used to treat obesity, diabetes, and related conditions.
The initiative seeks to expand access and affordability for millions of Americans, including those covered by Medicare and Medicaid.
Under the deals, patients using the new government platform TrumpRx.gov will initially pay about $350 per month for injectable GLP-1 drugs, with prices expected to drop to $250 within two years for out-of-pocket payers.
The upcoming daily pill versions, pending US Food and Drug Administration (FDA) approval, will start at approximately $150 per month.
For Medicare recipients, the administration said the drugs will become available in mid-2026, with out-of-pocket costs around $50 for eligible beneficiaries. Medicaid pricing and rollout will depend on state-level participation.
The agreements include provisions for price guarantees on future medications, increased US manufacturing investment, and tariff exemptions on imported pharmaceutical products. In exchange, the companies will receive expedited regulatory review for certain new drugs.
Before the announcement, list prices for popular GLP-1 drugs such as Wegovy and Zepbound exceeded $1,000 per month, placing them out of reach for many patients.
Speaking at the White House, President Donald Trump described the initiative as a “triumph for American patients,” saying it would “save lives and improve the health of millions of Americans.”
The TrumpRx.gov platform, a direct-to-consumer government website, is set to launch by January 2026, with drug prices viewable before the end of this year.
Shares of Novo Nordisk traded down 4% following the announcement, while Eli Lilly shares were up 1.2%.