Eli Lilly Novo Nordisk stock fall on Trump GLP-1 price comments
shares Eli Lilly And Novo Nordisk It fell on Friday after President Donald Trump said his administration aims to reduce the cost of brand-name weight-loss drugs GLP-1 to $150 a month, a fraction of their current list price.
“You were buying a particular drug in London for $130, or even less than that… for $88… a month ago. And in New York, you’re paying $1,300 for the same thing,” Trump said during an event about in vitro fertilization treatment at the White House on Thursday afternoon. “Instead of $1,300, you’re going to pay $150, they’re going to pay $150, so we’re going to pay the same thing.”
Asked by a reporter which drug he was referring to, Trump replied, “I was talking about Ozempic, or the fat burning drug.”
At this point, Centers for Medicare and Medicaid Administrator Dr. Mehmet Öz intervened and emphasized that the administration has not yet reached an agreement with pharmaceutical manufacturers regarding the GLP-1 price reduction.
“We have not discussed these yet… We will make them available over time, the GLP drug category, which includes Ozempic, has not been negotiated yet,” Öz said.
Just a week ago, Oz said the administration was “in the middle of a lot of action” regarding price negotiations for weight-loss drugs.
Eli Lilly shares closed down 2% on Friday, while shares of Novo Nordisk were down 3% in U.S. trading. Meanwhile shares His and Her Health The company, which sells the much cheaper compound GLP-1, fell more than 15%.
Eli Lilly and Novo Nordisk were among the 17 largest U.S. pharmaceutical companies to receive letters from the Trump administration demanding that businesses bring U.S. drug prices to those in other developed countries, following the president’s executive order on so-called most preferred country pricing.
Pfizer And AstraZeneca They signed drug pricing agreements with the administration, following the initiative of the president. But Trump and Oz’s comments make clear that the administration wants to include weight-loss drug manufacturers in its ranks.
$150 GLP-1 would be cheaper than compounders
While demand for weight loss pills has increased, price has remained a barrier for consumers and employers.
Only one-fifth of large employers currently offer GLP-1s for weight loss, according to a new survey from the Kaiser Family Foundation. Of those who do, two-thirds say high-cost drugs have a “significant” impact on prescription drug spending.
Workers without health insurance coverage are increasingly turning to the cash market to purchase medications on their own.
Eli Lilly and Novo Nordisk sell discounted versions of their diabetes and weight-loss drugs on their direct-to-consumer sites for about $500 a month. Telehealth providers like Hims & Hers offer compounded versions of GLP-1s for less than half that price, at $130 to $200 per month.
If management can reduce the cash price of popular weight-loss drugs like Lilly’s Zepbound and Novo Nordisk’s Wegovy to $150, it could compete with compound options and have a major impact on the current cash market.
