WASHINGTON — President Donald Trump announced major agreements with Eli Lilly and Co. and Novo Nordisk to significantly lower U.S. prices for GLP-1 weight loss and diabetes drugs, including Wegovy, Ozempic, Zepbound, and Mounjaro. The deal marks one of the most significant government actions in prescription drug pricing and is the first time Medicare will cover certain obesity medications for eligible patients.
According to the White House, the agreements will lower the prices Americans pay for some of the highest spending drugs in the nation. The administration said, “President Trump announced the latest in a series of the most significant actions ever taken by our Federal government to lower prescription drug prices.” The statement added that the drugs affected are “among the world’s most popular drugs” and treat diabetes, heart disease and obesity.
Under the price cuts, the monthly cost of Ozempic will decrease from approximately $1,000 to $350 when purchased through a new consumer platform called TrumpRx.gov, which is set to launch in January 2026. The price of Wegovy will drop from about $1,350 to $350. Lilly’s Zepbound and its potential obesity pill orforglipron will reduce from $1,086 per month to an average of $346.
If the FDA approves the Wegovy pill or other oral GLP-1s in the companies’ pipelines, the White House said, “the initial dose of those drugs will be priced at 150 dollars per month through TrumpRx.”
Medicare prices will also decrease significantly. The White House stated, “The Medicare prices of Ozempic, Wegovy, Mounjaro, and Zepbound will be $245, less than half the prices proposed by the Biden Administration.” Medicare beneficiaries will pay a $50 copay.
Trump said in the Oval Office, as reported by CNBC, “They have often cost consumers more than 1,000 dollars per month, some a lot more than that. That ends starting today.”
The move also expands Medicare coverage to obesity drugs for the first time. “These low prices will enable Medicare to cover Wegovy and Zepbound for patients with obesity and related comorbidities for the first time,” the White House said.
Health and Human Services Secretary Robert F. Kennedy Jr. called the agreement the most consequential drug price action the administration has taken. “This is the biggest drug in our country, and that is why this is the most important of all the announcements we have made,” Kennedy said, according to CNBC. He predicted, “All Americans, even those who are not on Medicaid and Medicare, are going to be able to get the same price for their drugs.”
Bloomberg reported that the deals include a three-year grace period from Trump’s upcoming pharmaceutical import tariffs. Trump characterized the agreement as “a triumph for American patients that will save lives and improve the health of millions and millions of Americans.”
The drugmakers will also offer significant discounts on other popular medicines. Eli Lilly will sell Emgality, a migraine treatment, for $299 per pen and Trulicity for $389 per month. Novo Nordisk will provide standard insulin products, including NovoLog and Tresiba, at a monthly supply cost of $35.
Both companies framed the agreement as a turning point.
Eli Lilly CEO David Ricks said in a statement, “This marks a pivotal moment in U.S. health care policy and a defining milestone for Lilly.” Novo Nordisk CEO Mike Doustdar said, “Today’s announcement will bring semaglutide medicines to more American patients at a lower cost.”
The companies also confirmed new U.S. manufacturing investments related to the agreement. Novo Nordisk has committed an additional $10 billion to expand domestic production, including plans to produce the Wegovy tablet entirely in the United States. Meanwhile, Lilly has announced at least $27 billion in new U.S. manufacturing investments.
According to Bloomberg, senior administration officials stated that the price reductions are linked to Most Favored Nation pricing, enabling Medicare, Medicaid, and the TrumpRx platform to access the lowest prices available in developed markets.
Trump concluded the announcement by saying the deal would “dramatically expand access” to weight loss and diabetes therapies and emphasized that patients “will finally get relief from outrageous drug costs.”
